The Modi-led Coalition government is being criticized heavily both by the opposition as well as internet propaganda lovers. The 2024-25 Budget is being shown as the “Coalition Dependent Budget” or “Kursi Bachao Budget”. This is a hilarious remark on the situation that the BJP has put itself in.
Regardless of what the Indian government decides to say or not to say about the issue, our primary focus is to give you all the information about the Indian Budget 2024-2025. You will get all the major highlights of the budget in this article.
The Indian Government’s 2024-2025 Budget, presented by Finance Minister Nirmala Sitharaman, outlines significant financial plans and reforms aimed at fostering economic growth and addressing various sectors’ needs (according to the Modi government).
What was the Opposition’s reaction to The Indian Budget 2024-2025?
As usual, the opposition left no stone unturned in the Parliament session when they accused the Government of favoring certain coalition states like Bihar and Andhra Pradesh. The criticism also came from the share market holders and many other corporate businesses that were negatively affected by the budget.
Members of the opposition attempted to bring up the subject of financial allocations as soon as the House convened for the day.
Speaker Om Birla warned opposition members not to interfere with Question Hour while they were raising slogans. Members of both parties, he continued, ought to observe parliamentary customs.
Key Highlights of the Indian Budget 2024-25
- Increase in Capital Expenditure: The budget focuses on infrastructure development, with a substantial increase in capital expenditure allocation.
- Support for Agriculture: Major support schemes for farmers, including increased subsidies and incentives.
- Boost to Education and Healthcare: Significant funding aimed at improving educational infrastructure and healthcare facilities.
- Defense: The defense sector receives one of the highest allocations to strengthen national security.
- Tax Reforms: Introduction of new income tax slabs to provide relief to middle and lower-income groups.
- Youth Development: Launch of new schemes targeting skill development and employment for the youth.
Indian Budget 2024-2025 Focuses on Youth?
Focus on Youth
The 2024-2025 Budget places a strong emphasis on the youth, aiming to equip them with the necessary skills and opportunities to contribute to the nation’s growth. Key initiatives include:
- Skill Development Programs: New programs to enhance employability through vocational training.
- Startup Support: Financial aid and tax benefits for young entrepreneurs.
- Education and Scholarships: Increased funding for educational institutions and scholarship programs.
Focus on Employment and Skilling
- Allocation: ₹2 lakh crore for skilling 4.1 crore youth.
- Employment Schemes: Five schemes launched with an outlay of ₹2 lakh crore over five years.
- E-vouchers for 1 lakh students each year.
- Comprehensive internship scheme for 1 crore youth in 500 top companies over five years.
- Education Loans: Financial support for higher education loans up to ₹10 lakh.
- Upgradation of 1,000 Industrial Training Institutes (ITIs) and internships for 1 crore youth in top companies.
- Three New Schemes:
- Scheme A: Direct benefit transfer of 1-month salary in 3 installments up to ₹15,000 for first-time employees registered in EPFO.
- Scheme B: Incentives for job creation in manufacturing, directly benefiting both employee and employer.
- Scheme C: Reimbursement to employers up to ₹3,000 per month for 2 years for each additional employee.
Allocation for states in the Indian Budget 2024-2025
The Centre has announced an increase in the allocations for interest-free loans to states aimed at capital expenditure, allowing states to enhance their spending on infrastructure and reform initiatives. During her budget speech, Finance Minister Nirmala Sitharaman declared that the allocations for FY25 will rise to ₹1.5 trillion, up from the ₹1.3 trillion outlined in the interim budget. This move follows reports from June indicating that the Centre was considering a 20-30% increase in these 50-year, interest-free loans compared to the interim budget.
This revised allocation has been made feasible by a record ₹2.11 trillion dividend received from the Reserve Bank of India (RBI) in May. Since FY21, a significant portion of these loans has been linked to the economic reforms the Centre has urged states to implement, a trend that has continued and evolved since FY23. In the latest budget iteration, some existing reform requirements will be removed, and new ones will be introduced to enhance policy implementation at the state level.
In the interim budget for 2024-25, the Centre had earmarked ₹1.3 trillion for “special assistance to states for capital investment,” similar to the previous year. Of this, ₹75,000 crore, or 58%, was tied to “outcomes and reforms” by states, while the remaining ₹55,000 crore was subject to simpler conditions. Current reforms include initiatives in the housing sector, incentives for scrapping old government vehicles, urban planning and finance reforms, increasing housing for police personnel, and establishing digital libraries at panchayat and ward levels for children and young adults.
Budgets Allocated to Different Ministries
Education
- ₹1.2 lakh crore allocated to improve educational infrastructure, digital learning, and research facilities.
Defense
- ₹5.94 lakh crore for defense, including modernization of armed forces and infrastructure development
Housing
- ₹80,000 crore for affordable housing projects and urban development initiatives.
Aviation
- ₹25,000 crore allocated to enhance airport infrastructure and promote regional connectivity.
Roads and Highways
- ₹2.78 lakh crore to the Ministry of Roads and Highways for expansion and maintenance of national highways
Sports
- ₹3,200 crore to the Ministry of Sports for developing sports facilities and promoting sports at the grassroots level.
Agriculture
- ₹2.05 lakh crore for the agricultural sector, focusing on subsidies, irrigation projects, and support for farmers
Additional highlights from Budget 2024
The Union Budget 2024-25 introduces several key initiatives to boost the economy and promote development across various sectors. Notably, land records digitization will see the implementation of GIS mapping and IT-based systems for urban property records management. The budget also projects a fiscal deficit of 4.9% of GDP for FY24-25, with the Chief Economic Advisor forecasting economic growth between 6.5-7% for FY25. Additionally, ₹11.5k crore has been allocated for flood control measures in Bihar, Assam, Himachal Pradesh, Uttarakhand, and Sikkim.
To stimulate the job market, the government plans to incentivize 30 lakh youth by providing one month’s PF contribution. Women-led development is a major focus, with over ₹3 lakh crore allocated for schemes benefiting women and girls. The budget also includes significant incentives for the International Financial Services Centre (IFSC), such as tax exemptions for retail schemes, Exchange Traded Funds, and various financial companies and funds operating within the IFSC.
In addition to these measures, the budget outlines numerous schemes to support inclusive growth, innovation, energy security, and urban development. Among these are the revised Model Skill Loan Scheme aimed at assisting 25,000 students annually and multiple initiatives to ensure broad-based economic progress. The Indian Budget 2024-25 is clearly geared towards fostering sustainable development and economic resilience.
Our Opinion on the Budget 2024-25
As a proud Indian nationalist, dental surgeon, and artist, I find myself reflecting deeply on the recently announced Indian Budget 2024-25. This budget is a testament to the government’s commitment to driving India towards economic resilience and inclusive growth. It is a strategic blueprint that addresses the immediate needs of our nation while laying down a robust foundation for future prosperity.
Strengthening the Economic Backbone
One of the most commendable aspects of the budget is its focus on economic growth, with the Chief Economic Advisor projecting a growth rate of 6.5-7% for FY25. This optimistic forecast is not merely a number but a reflection of our nation’s potential and resilience. The fiscal deficit, projected at 4.9% of GDP, indicates a balanced approach to fiscal discipline and growth-oriented spending.
The allocation of ₹1.5 trillion for interest-free loans to states for capital expenditure is a significant step. It empowers states to enhance infrastructure and undertake critical reforms. This move is further bolstered by the record ₹2.11 trillion dividend received from the Reserve Bank of India, showcasing the financial prudence of our central bank and the Centre’s strategic planning.
Empowering Women and Youth
A standout feature of this budget is its emphasis on women-led development. With over ₹3 lakh crore allocated for schemes benefiting women and girls, the government is sending a powerful message about the importance of gender equality in our economic narrative. These funds will support various initiatives aimed at improving the lives of women and creating opportunities for them to thrive.
In addition, the government’s plan to incentivize 30 lakh youth to enter the job market by providing one month’s PF contribution is a proactive measure to address unemployment and skill development. This initiative will not only boost the morale of our young workforce but also ensure their active participation in nation-building.
Enhancing Infrastructure and Security
The budget’s focus on infrastructure is evident with ₹11.5k crore allocated for flood control measures in states like Bihar, Assam, Himachal Pradesh, Uttarakhand, and Sikkim. This allocation is crucial for mitigating the impact of natural disasters and safeguarding the livelihoods of millions.
Moreover, the digitization of land records through GIS mapping and IT-based systems for urban property records management is a visionary step. It will bring transparency, reduce disputes, and facilitate smoother transactions, thereby boosting real estate and urban development.
Fostering Financial Growth and Innovation
The incentives for the International Financial Services Centre (IFSC) are a masterstroke. Tax exemptions for retail schemes, Exchange Traded Funds, and various financial companies and funds in IFSC will attract global investors and enhance India’s position as a financial hub. The revised Model Skill Loan Scheme, aimed at helping 25,000 students annually, underscores the government’s commitment to fostering education and innovation.
Conclusion: A Visionary Budget for a New India
The Indian Budget 2024-25 is more than just a financial statement; it is a bold vision for a resurgent Bharat. It addresses critical issues, empowers key demographics, and sets the stage for sustainable growth. As a right-wing nationalist, I see this budget as a reaffirmation of our government’s dedication to making India self-reliant, prosperous, and strong.
This budget is a clarion call for all Indians to unite, contribute, and partake in the journey toward a New India. It is a strategic and inclusive budget that reflects the aspirations of a billion people and paves the way for a brighter, stronger, and more resilient Bharat.
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