Union Budget 2024-25: Sitharaman Unveils Comprehensive Economic Roadmap Amid Global Challenges

Finance Minister Nirmala Sitharaman announced a comprehensive Union Budget 2024-25, prioritizing jobs, MSMEs, agriculture, and startups. Key focuses include inflation control, skill development, digital public infrastructure in agriculture, enhanced financial support for education, and significant tax reforms. Key initiatives aim to boost economic growth and social development.

Finance Minister Nirmala Sitharaman unveiled a comprehensive economic plan focusing on job creation, MSME support, agricultural development, and startup growth, amid global uncertainties, during the Union Budget 2024-25 presentation on Tuesday. The Ministry of Finance noted that India's inflation is low and stable, edging towards a 4 per cent target, with core inflation at 3.1 per cent. Measures are in place to ensure adequate market supply of perishable goods.

Sitharaman highlighted the interim budget's emphasis on assistance for the poor, women, youth, and farmers. The Prime Minister's package will deliver five schemes targeting employment and skill enhancement for 41 million youth over five years, backed by a central allocation of Rs 2 lakh crore.

An allocation of Rs 1.48 lakh crore will advance education, employment, and skill development. The budget's 'Viksit Bharat' vision outlines nine priorities, including boosting agricultural productivity, employment opportunities, human resource development, manufacturing, urban development, energy security, infrastructure, innovation, and regulatory reforms.

Farmers will benefit from 109 high-yield, climate-resilient crop varieties and initiatives to promote natural farming. The government plans to enhance production of pulses and oilseeds, and set up 10,000 bio-input resource centres. Implementation of Digital Public Infrastructure in agriculture is slated for the next three years, with Rs 1.52 lakh crore allocated for agriculture sectors.

New 'Employment Linked Incentive' schemes will boost EPFO enrolment and support employees and employers. A revised Model Skill Loan Scheme will offer loans up to Rs 7.5 lakh with government guarantees, aiding 25,000 students annually. Financial support for higher education and expanded schemes like PM Vishwakarma and PM SVANidhi are also key deliverables.

The Purvodaya plan will focus on holistic development in eastern states, while the Pradhan Mantri Janjatiya Unnat Gram Abhiyan will aid 50 million tribal individuals. Financial inclusion via India Post Payment Bank and rural development funding of Rs 2.66 lakh crore were also highlighted.

The Mudra loan limit will rise to Rs 20 lakh, with support for multi-product food irradiation units and food quality labs. E-commerce export hubs for MSMEs will facilitate international market access.

Urban housing needs under PM Awas Yojana Urban 2.0 will be addressed with Rs 10 lakh crore allocation, providing free electricity through solar panels under the Surya Ghar Muft Bijli Yojana. Infrastructure development receives substantial fiscal backing, with Rs 11.11 lakh crore capital expenditure commitment.

An Anusandhan National Research Fund will promote private sector-driven research with Rs 1 lakh crore allocation. Simplified tax regimes will benefit charities, foreign investors, and startups, abolishing angel tax and easing tax compliance. Adjustments in TDS rates and rationalized capital gains tax structure aim to relieve lower and middle-income groups.

Continued digitization and streamlined customs duties will enhance trade efficiency and environmental sustainability. The Vivad se Vishwas Scheme, 2024, targets the resolution of income tax disputes. These comprehensive measures underscore the government's commitment to economic resilience and inclusive growth.