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Key Features
of
Budget
2024-2025

July, 2024
Roadmap for our pursuit of ‘Viksit Bharat’

Focus on 4 major castes

‘Garib’
‘Annadata’
(Farmer)
(Poor)

‘Mahilayen’
(Women)
‘Yuva’
(Youth)

Budget Theme

01 Employment

02 Skilling

03 MSMEs

04 Middle Class

1
 Priorities for Viksit Bharat

Productivity and resilience in Agriculture

01
Transforming Agriculture Research
Comprehensive review of the agriculture research setup to
bring focus on raising productivity and developing
climate resilient varieties.

National Cooperation Policy

For systematic, orderly Atmanirbharta
and all-round For oil seeds such as mustard,
development of the groundnut, sesame, soyabean
cooperative sector and sunflower

Vegetable production &

supply chain Release of new varieties
109 new high-yielding and climate-
Promotion of FPOs, cooperatives &
resilient varieties of 32 field and
start-ups for vegetable supply chains
horticulture crops will be released
for collection, storage, and
for cultivation by farmers
marketing.

Natural Farming
• 1 crore farmers across the country will be initiated into natural farming,
supported by certification and branding in next 2 years.
• 10,000 need-based bio-input resource centres to be established.

Shrimp Production & Export

• Financing for Shrimp farming, processing and export will be facilitated through
NABARD.

Digital Public Infrastructure (DPI)

• DPI for coverage of farmers and their lands in 3 years.
• Digital crop survey in 400 districts 2
• Issuance of Jan Samarth based Kisan Credit Cards 2
 Priorities for Viksit Bharat

Employment & Skilling 02

PM’s Package (3 schemes for Employment Linked Incentive)

- One-month wage to new - Government will reimburse

entrants in all formal sectors in EPFO contributions of employers
3 instalments up to ₹15,000 . up to ₹3000 per month for 2 years
for all new hires.
- Expected to benefit 210 lakh
Scheme B - Expected to generate 50 lakh
youth
Job Creation in jobs
Manufacturing

Scheme A Scheme C
- Linked to first time employees
First Timers Support to Employers
- Incentive to both employee &
employer for EPFO contributions in
the specified scales for the first 4
years
- Expected to benefit 30 lakh youth

- Facilitate higher participation of

women in the workforce through Skilling Programme
setting up of working women
hostels in collaboration with
• 20 lakh youth will be
industry, and establishing creches. PM’s Package (4th scheme)
skilled over a 5-year
period.
- Loans up to ₹7.5 lakh with a • 1,000 Industrial
guarantee from a government
promoted Fund. Training Institutes will
- Expected to help 25,000 students be upgraded in hub
every year. and spoke
arrangements with
- Financial support for loans upto outcome orientation.
₹10 lakh for higher education in
domestic institutions. • Course content &
- Direct E-vouchers to 1 lakh design aligned as per
students every year. skill needs of industry.
- Annual interest subvention of 3% 3
3
 Priorities for Viksit Bharat

Inclusive Human Resource

Development and Social Justice 03
Purvodaya: Vikas bhi Virasat bhi

• Plan for endowment rich states in the Eastern parts covering

Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh for
generation of economic opportunities to attain Viksit Bharat.
• Amritsar Kolkata Industrial Corridor with development of an
industrial node at Gaya.

Allocation of more than ₹3 lakh crore for schemes benefitting women

and girls.

Pradhan Mantri Janjatiya Unnat Gram Abhiyan: Improving the

socio-economic condition of tribal communities covering 63,000
villages benefitting 5 crore tribal people.

More than 100 branches of India Post Payment Bank will be set up in
the North East region.

Andhra Pradesh Reorganization Act:

• Financial support of ₹15,000 crores will be arranged in FY 24-

25.
• Completion of Polavaram Irrigation Project ensuring food
security of the nation.
• Essential infrastructure such as water, power, railways and roads
in Kopparthy node on the Vishakhapatnam-Chennai Industrial
Corridor and Orvakal node on Hyderabad-Bengaluru Industrial
Corridor. 4
4
 Priorities for Viksit Bharat

Manufacturing & Services 04

New assessment model
Credit Guarantee Scheme for MSME credit
for MSMEs in the
Manufacturing Sector
Mudra Loans: The limit
enhanced to ₹ 20 lakh from
Enhanced scope for the current ₹ 10 lakh under
mandatory onboarding in the ‘Tarun’ category.
TReDS
Credit Support to
MSMEs during
MSME Units for Food Stress Period
Irradiation, Quality &
Safety Testing

Twelve industrial parks under the

National Industrial Corridor Internship Opportunities
Development Programme
• Scheme for providing
PM’s Package (5th scheme)
Rental housing with dormitory type internship
accommodation for industrial
workers in PPP mode with VGF
opportunities in 500
support. top companies to 1
crore youth in 5 years.
• Allowance of
Critical Minerals Mission for
domestic production, recycling and ₹5,000 per month
overseas acquisition. along with a one-time
assistance of ₹6,000
Strengthening of the tribunal and through the CSR
appellate tribunals to speed up funds.
insolvency resolution and additional
tribunals to be established 5
5
 Priorities for Viksit Bharat

Urban Development
05

Transit
Stamp Street Oriented Water
Duty Markets Development Management

Encouraging Envisioning Promote water

states to a scheme to Transit Oriented supply, sewage
lower stamp develop 100 Development treatment and solid
duties for weekly plans for 14 waste management
properties ‘haats’ or large cities with projects and
purchased by street food a population services for 100
women. hubs in above 30 lakh large cities through
select cities bankable projects.

Housing Needs

PM Awas
Yojana
Urban 2.0
Enabling policies and
Needs of 1 crore urban poor and
regulations for efficient
middle-class families will be
and transparent rental
addressed with an investment of
housing markets with
₹10 lakh crore
enhanced availability will
also be put in place.
6
6
 Priorities for Viksit Bharat

Energy Security 06

Initiatives with private

sector in Nuclear Energy Pumped Storage Policy
• Setting up Bharat Small For electricity storage and
Reactors facilitation of smooth
• R&D of Bharat Small integration of the growing
Modular Reactor and share of renewable energy
newer technologies for
nuclear energy AUSC Thermal
Power Plants
A joint venture between
NTPC and BHEL will
Energy Audit set up a full scale 800
• Financial support for shifting of MW commercial plant.
micro and small industries to cleaner
forms of energy
• Facilitate investment grade energy
audit in 60 clusters, next phase
expands to 100 clusters.

1 crore
Households obtain free
electricity

Up to 300
Muft Bijli Yojana
PM Surya Ghar

Units every month

1.28 crore
Registrations and 14
lakh applications so far
7
 Priorities for Viksit Bharat

Infrastructure 07

Phase IV of
PMGSY will be
Provision of ₹1.5 lakh crore
₹11,11,111 to states as long-
launched to
crore for term interest free provide all-
infrastructure loans to support weather
(3.4% of GDP). resource connectivity to
allocation. 25,000 rural
habitations.

Irrigation and Flood Mitigation 01

Financial support for projects with estimated cost of ₹11,500

crore such as the Kosi-Mechi intra-state link and 20 other
ongoing and new schemes

Assistance for flood management and related projects in Assam,

Sikkim & Uttarakhand

Assistance for reconstruction and rehabilitation in Himachal

Pradesh

8
05
 Priorities for Viksit Bharat

Infrastructure 07
Tourism

• Development of Vishnupad Temple Corridor and Mahabodhi

Temple Corridor modelled on Kashi Vishwanath Temple Corridor

• Comprehensive development initiative for Rajgir will be

undertaken which holds religious significance for Hindus, Buddhists
and Jains.

• The development of Nalanda as a tourist centre besides reviving

Nalanda University to its glorious stature.

• Assistance to development of Odisha’s scenic beauty, temples,

monuments, craftsmanship, wildlife sanctuaries, natural landscapes
and pristine beaches making it an ultimate tourism destination.

Innovation, Research & Development

08

Operationalization of the Anusandhan National Research

Fund for basic research and prototype development.

Private sector-driven research and innovation at

commercial scale with a financing pool of ₹1 lakh crore
Space Economy: A venture capital fund of
₹1,000 crore is to be set up

9
9
 Priorities for Viksit Bharat

Next Generation Reforms

09
Rural & Urban land related actions

Land records in urban

Unique Land Parcel areas will be digitized
Identification Number with GIS mapping
or Bhu-Aadhaar for all
lands. Digitization of
cadastral maps
Survey of map
sub-divisions as per
current ownership Establishment of
land registry
Linkages to the
farmers’ registries

Taxonomy for climate finance: Enhancing the availability of capital for climate
adaptation and mitigation related investments

FDI and Overseas Investments: Simplified to facilitate FDIs and promote

opportunities for using Indian Rupee as a currency for overseas investments.

NPS Vatsalya: A plan for contribution by parents and guardians for minors.

Improvement of data governance, collection, processing and management of data

and statistics.

New Pension Scheme (NPS): A solution that address the relevant issues, protects
the common citizen and maintains fiscal prudence will be formed.

10
 Robust Economic Foundations

Improvement in Current Account Deficit India grew at 8.2 per cent in FY 2024
200 15
1.5
1.0 150 10
0.5

₹lakh crore
5

per cent
100
0.0 0
Per cent

-0.5 50 -5
-1.0
-1.5 0 -10

2023-24 (PE)
2022-23 (RE)
2019-20

2020-21

2021-22
-2.0
-2.5
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24

Real GDP Real GDP growth (RHS)

Expansionary PMI Index Decline in Gross NPAs of SCBs

70
12

60 10
8
50
Per cent

6
40 4
2
30
0
Jan 22

Jan 23

Jan 24
Jul 21
Oct 21

Jul 22
Oct 22

Jul 23
Oct 23
Apr 21

Apr 22

Apr 23

Apr 24

Mar-15
Mar-16
Mar-17
Mar-18
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Mar-24
Services Manufacturing

Decreasing Fiscal Deficit as % of GDP Taming Inflation

10 9.2
9 7

8 6.7
6.7 6.4
7 6.2
FD as % of GDP

6 5.6 6
Per cent

5 5.5
4 5.4

3 5
2
1
0 4
FY21 FY22 FY23 FY24 2020 2021 2022 2023

11
 Tax Proposals
Simplification in Taxes

Review of Simplification Litigation and Deepening the

Income Tax of charities and Appeal tax base
Act 1961 TDS

Sector Specific Customs Duty Proposals

Comprehensive review of the rate structure for ease of trade, removal

of duty inversion and reduction of disputes

Changes in Custom Duty Beneficiaries

Fully exempt 3 more cancer medicines Affordable medicines

from custom duties

Reduce BCD to 15% on Mobile phone,

Mobile industry
Mobile PCBA and charger

Reduce custom duty on gold and silver to

Domestic value addition
6% and platinum to 6.4%

Enhance competitiveness
Reduce BCD on shrimp and fish feed to 5%
in marine exports

Exempted more capital goods for Support energy

manufacturing of solar cells & panels transition

Fully exempt custom duties on 25 critical

Boost to strategic sectors
minerals
12
 Direct Tax Proposals
To reduce the compliance burden, promote entrepreneurial spirit
and provide tax relief to citizens
Rationalisation

• Short term gains of financial assets to attract 20% tax

of capital gains

rate
• Long term gains on all financial an non-financial assets
to attract a tax rate of 12.5%
• Increase in limit of exemption of capital gains on
financial assets to ₹1.25 lakh per year

• Abolish ANGEL tax for all classes of investors.

Employment
Investment
• Simpler tax regime to operate domestic cruise
• Provide for safe harbour rates for foreign mining

and
companies (Selling raw diamonds)
• Corporate tax rate on foreign companies reduced from 40%
to 35%

Simplifying New Tax Regime

Savings 30%
upto 20%
₹17,500 15%
10%
5%

Nil
₹0- ₹3 lakh ₹3- ₹7 lakh ₹7- ₹10 lakh ₹10- ₹12 lakh ₹12- ₹15 lakh > ₹15 lakh
Standard Deduction for salaried employees increased from
₹50,000 to ₹75,000

Deduction on family pension for pensioners increased from

₹15,000 to ₹25,000
13
 Rupee Comes From
Income Tax
(19%)
19% Borrowing and Other
Liabilities (27%)
27%

₹
Union Excise
Duties (5%) 5%

9%
18%
Non-Tax Receipts (9%)
1%
GST & other 4% Non-Debt Capital Receipts
taxes (18%)
Customs (4%)
17%

Corporation tax (17%)

Rupee Goes To
Pensions (4%)
Other Expenditure
(9%)
4%
Interest Payments (19%)
9%
19%
Centrally
Sponsored
Scheme (8%)
8%

Finance Commission
and other transfers
(9%)
9%

₹ 16%
Central Sector
Scheme
(excluding capital
outlay on Defence
and Subsidy)
(16%)

21% 6%

8% Subsidies (6%)
States' share of Taxes
14
and Duties (21%)
Defence (8%)
Expenditure of Major Items
in ₹ Crore

Defence 4,54,773

Ministry of Road Transport and

Rural Development
Highways 2,65,808

Agriculture and Allied Activities 1,51,851

Home Affairs 1,50,983

Education 1,25,638

IT and Telecom 1,16,342

Health 89,287

Energy 68,769

Social Welfare 56,501

Commerce & Industry 47,559

15
 Allocation to Major Schemes (in ₹ crore)

MGNREGA Research and Development Projects

86,000

1,200
60,000

840
2023-24(BE) 2024-25(BE) 2023-24(BE) 2024-25(BE)

Nuclear Power Projects PLI for Pharmaceutical Industry

2,228

2,143
1,200
442

2023-24(BE) 2024-25(BE) 2023-24(BE) 2024-25(BE)

Development of Semiconductors and

Solar Power (Grid)
Display Manufacturing

10,000
6,903
3,000

4,970

2023-24(BE) 2024-25(BE) 2023-24(BE) 2024-25(BE)

Direct Benefit Transfer- LPG Lines of Credit under IDEA Scheme

1,500

3,849
1,300
180

2023-24(BE) 2024-25(BE) 2023-24(BE) 2024-25(BE)

16
 Receipts

Revenue Receipts Capital Receipts

35 19
18.7
31.3
30
26.3 27.0
23.8 18.1
25
18 17.9
16.9
₹Lakh Crore

₹Lakh Crore
20

15
17
10

0 16
2022-23 2023-24 2023-24 2024-25 2022-23 2023-24 2023-24 2024-25
(Actuals) (BE) (RE) (BE) (Actuals) (BE) (RE) (BE)

Expenditure

Effective Capital
Revenue Expenditure
Expenditure
37
16 15.0
37.1
13.7
12.7
36
12
10.5
35.4
₹Lakh Crore
₹Lakh Crore

35.0
35 8
34.5

34 4

33 0
2022-23 2023-24 2023-24 2024-25 2022-23 2023-24 2023-24 2024-25
(Actuals) (BE) (RE) (BE) (Actuals) (BE) (RE) (BE)

17
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 Headlines
Budget Overview
SC declines pleas to cancel NEET - Page No.17 ,
GS 2
Cough syrup samples failed - Page No.17 , GS 2

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Content.

• Recently, Finance Minister Nirmala Sitharaman presented the Union

Budget 2024.

Basics Related to Union Budget

• Annual Financial Statement: As per Article 112 of the Constitution,
the Budget is formally known as the Annual Financial Statement of
the Government.

• The term ‘Budget’ itself is not mentioned anywhere in the

Constitution.
Fact

• Revenue Budget: Includes both tax and non-tax revenue receipts

and the expenditure of the government.

• Capital Budget: Consists of capital receipts and the payments of the

government.

• The Department of Economic Affairs, Ministry of Finance, is the

nodal body responsible for preparing the Budget.

• Preparation by: The Budget for a year is developed by the Budget

Division of the Department of Economic Affairs.
Page No. 17, GS 2
Content.

• Three-judge Bench observes that there is no material on record ‘at the

present stage’ to prove that a systemic leak of question papers has
destroyed the sanctity of the exams held annually for medical
admissions across the country

• The judgment seemed to agree with the arguments of the government

and the Central Bureau of Investigation (CBI), both represented by
Solicitor-General Tushar Mehta, that the leaks “so far” looked
“localised” to Hazaribagh and Patna in Bihar. An ongoing CBI probe
has led to several arrests.
Fact

• The Chief Justice responded that an entire exam cannot be

cancelled, putting the future of over 23 lakh students who
appeared for NEET-UG across 571 cities in peril, on the mere
hypothesis of the petitioners that the leak was not confined to
Hazaribagh and Patna.

• The court made it clear that students identified in future as

beneficiaries of the paper leak in the ongoing CBI investigation
should not profit from the illegality and be barred from admission.
Page No. 17, GS 2
Content.

• Cough syrup samples from over 100 pharmaceutical units in the country did
not pass quality tests, as per a recent report by the Central Drugs Standard
Control Organisation (CDSCO).

• It classified these batches as “not of standard quality” (NSQ) due to issues

with diethylene glycol (DEG), ethylene glycol (EG), assay, microbial growth,
pH, and volume.

• The report, presented to the Ministry of Health and Family Welfare, found
that out of 7,087 batches tested, 353 were deemed NSQ. Nine batches were
particularly problematic due to the presence of diethylene glycol and
ethylene glycol. The report said some of these samples contained the same
toxins found in cough syrups linked to the deaths of children in Gambia,
Uzbekistan, and Cameroon.
Fact

• Ethylene glycol and diethylene glycol are toxic alcohols with a slightly
sweet taste.
• Contamination of cough syrups with these glycols can occur,
especially in products containing paracetamol.

• Paracetamol in cough syrups is good and safe for children with

infections. It is a pain killer which is good at reducing fever.

• Diethylene glycol and ethylene glycol are adulterants that are

sometimes illegally used as solvents in liquid drugs as an alternative
to non-toxic solvents such as glycerine or propylene glycol to cut
costs.
Fact

Central Drugs Standard Control Organisation (CDSCO)

• The CDSCO is the Central Drug Authority for discharging functions assigned
to the Central Government under the Drugs and Cosmetics Act 1940.

Major Functions:
• Regulatory control over the import of drugs, approval of new drugs and
clinical trials.
• Approval of certain licences as Central Licence Approving Authority
• Drug Controller General of India(DCGI)
• DCGI is responsible for approval of licences of specified categories of drugs
such as blood and blood products, IV fluids, vaccines and sera in India.
• It comes under the Ministry of Health & Family Welfare.
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