Union Budget in This morning, Hon’ble Finance Minister Nirmala Sitharaman presented the first budget of the current government. This budget mainly focuses on employment, skill development, small and medium enterprises (MSME) and the middle class, and to promote overall prosperity. A list of key priorities is given to create more opportunities for all and suggestions are given on how these goals can be achieved and move towards a Vikshit Bharat.
Interim Union Budget 2024
Here is how funds were allocated to different ministries in the Interim Union Budget 2024
- INR 1.27 Lakh Cr is allocated for the Ministry of Agriculture Farmers Welfare.
- INR 1.37 Lakh Cr is allocated for the Ministry of Communication.
- INR 1.68 Lakh Cr is allocated for the Ministry of Chemical and Fertilizers.
- INR 1.77 Lakh Cr is allocated for the Ministry of Rural Development.
- INR 2.03 Lakh Cr is allocated for the Ministry of Home Affairs.
- INR 2.13 Lakh Cr is allocated for the Ministry of Consumer Affairs, Food & Public Distribution.
- INR 2.55 Lakh Cr is allocated for the Ministry of Railways.
- INR 2.78 Lakh Cr is allocated for the Ministry of Road Transport and Highways.
- INR 6.2 Lakh Cr is allocated for the Ministry of Defence.
Union Budget Transforming agriculture research
Our government will undertake a comprehensive review of the agriculture research setup to bring the focus on raising productivity and developing climate resilient varieties. Funding will be provided in challenge mode, including to the private sector. Domain experts both from the government and outside will oversee the conduct of such research.
Union Budget Natural Farming
In the next two years, 1 crore farmers across the country will be initiated into natural farming supported by certification and branding. Implementation will be through scientific institutions and willing gram panchayats. 10,000 need-based bio-input resource centres will be established.
Union Budget Vegetable production & Supply Chains
Large scale clusters for vegetable production will be developed closer to major consumption centres. We will promote Farmer-Producer Organizations, cooperatives and start-ups for vegetable supply chains including for collection, storage, and marketing.
Union Budget Employment Linked Incentive
Our government will implement the following 3 schemes for ‘Employment Linked Incentive’, as part of the Prime Minister’s package. These will be based on enrolment in the EPFO, and focus on recognition of first-time employees, and support to employees and employers.
Union Budget Scheme A: First Timers
This scheme will provide one-month wage to all persons newly entering the workforce in all formal sectors. The direct benefit transfer of one-month salary in 3 instalments to first-time employees, as registered in the EPFO, will be up to 15,000. The eligibility limit will be a salary of 1 lakh per month. The scheme is expected to benefit 210 lakh youth.
Union Budget Scheme B: Job Creation in manufacturing
This scheme will incentivize additional employment in the manufacturing sector, linked to the employment of first-time employees. An incentive will be provided at specified scale directly both to the employee and the employer with respect to their EPFO contribution in the first 4 years of employment. The scheme is expected to benefit 30 lakh youth entering employment, and their employers.
Union Budget Scheme C: Support to employers
This employer-focussed scheme will cover additional employment in all sectors. All additional employment within a salary of ` 1 lakh per month will be counted. The government will reimburse to employers up to 3,000 per month for 2 years towards their EPFO contribution for each additional employee. The scheme is expected to incentivize additional employment of 50 lakh persons.
Union Budget Participation of women in the workforce
We will facilitate higher participation of women in the workforce through setting up of working women hostels in collaboration with industry, and establishing creches. In addition, the partnership will seek to organise women-specific skilling programmes, and promotion of market access for women SHG enterprises.
Union Budget Skilling programme
I am happy to announce a new centrally sponsored scheme, as the 4th scheme under the Prime Minister’s package, for skilling in collaboration with state governments and Industry. 20 lakh youth will be skilled over a 5-year period. 1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation. Course content and design will be aligned to the skill needs of industry, and new courses will be introduced for emerging needs.
Union Budget Skilling Loans
The Model Skill Loan Scheme will be revised to facilitate loans up to 7.5 lakh with a guarantee from a government promoted Fund. This measure is expected to help 25,000 students every year.
Union Budget Education Loans
For helping our youth who have not been eligible for any benefit under government schemes and policies, I am happy to announce a financial support for loans upto ` 10 lakh for higher education in domestic institutions. E-vouchers for this purpose will be given directly to 1 lakh students every year for annual interest subvention of 3 percent of the loan amount.
Union Budget Credit Support to MSMEs during Stress Period
I am happy to announce a new mechanism for facilitating continuation of bank credit to MSMEs during their stress period. While being in the ‘special mention account’ (SMA) stage for reasons beyond their control, MSMEs need credit to continue their business and to avoid getting into the NPA stage. Credit availability will be supported through a guarantee from a government promoted fund.
Union Budget Mudra Loans
The limit of Mudra loans will be enhanced to ₹ 20 lakh from the current ₹ 10 lakh for those entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun’ category.
Union Budget E-Commerce Export Hubs
To enable MSMEs and traditional artisans to sell their products in international markets, E-Commerce Export Hubs will be set up in public private-partnership (PPP) mode . These hubs, under a seamless regulatory and logistic framework, will facilitate trade and export related services under one roof.
Union Budget Pradhan Mantri Gram Sadak Yojana (PMGSY)
Phase IV of PMGSY will be launched to provide all-weather connectivity to 25,000 rural habitations which have become eligible in view of their population increase.
FAQ: Understanding India’s Union Budget 2024-25
1. What are the main priorities of the Union Budget 2024-25?
The Union Budget 2024-25 focuses on key areas such as employment generation, skill development, MSME support, and the middle class, with the overarching goal of achieving a more prosperous and self-reliant India or “Vikshit Bharat.”
2. How has the Union Budget 2024-25 allocated funds across ministries?
Significant funds were allocated to various ministries, with notable amounts as follows:
- Agriculture & Farmers Welfare: ₹1.27 Lakh Cr
- Communication: ₹1.37 Lakh Cr
- Rural Development: ₹1.77 Lakh Cr
- Railways: ₹2.55 Lakh Cr
- Defence: ₹6.2 Lakh Cr These allocations aim to drive development and support sector-specific goals across the nation.
3. What are the key agricultural initiatives in this budget?
The budget includes:
- A review of agricultural research to improve productivity and climate resilience.
- Promotion of natural farming with certification support for 1 crore farmers over the next two years.
- Development of large-scale vegetable clusters near major consumption centers to streamline supply chains.
4. How will the Union Budget 2024-25 promote employment?
The government announced three Employment Linked Incentive (ELI) schemes:
- Scheme A: Provides financial assistance to first-time employees, offering a one-month salary benefit up to ₹15,000.
- Scheme B: Incentivizes job creation in manufacturing by offering contributions for first-time employees.
- Scheme C: Supports employers by reimbursing contributions towards EPFO for additional employees for two years.
5. What support does the budget offer for women’s workforce participation?
To enhance women’s workforce participation, the budget proposes:
- Establishing hostels and creches for working women in partnership with industry.
- Women-specific skill programs and market access initiatives for self-help groups.
6. What are the skilling and educational initiatives introduced?
- New Skilling Program: 20 lakh youth will be trained in collaboration with state governments and industries over the next five years.
- Skill Loans: Loans up to ₹7.5 lakh with a government-backed guarantee.
- Education Loans: Financial aid for loans up to ₹10 lakh for higher education in domestic institutions, benefiting 1 lakh students annually.
7. How is the Union Budget supporting MSMEs, especially during financial stress?
A new credit mechanism is introduced to support MSMEs in financial distress. This includes bank credit with a government-backed guarantee, aimed at preventing MSMEs from slipping into the NPA (Non-Performing Asset) stage during their special mention account (SMA) period.
8. Has the budget increased the limit for Mudra loans?
Yes, the budget has increased the Mudra loan limit to ₹20 lakh, up from ₹10 lakh, specifically for entrepreneurs under the ‘Tarun’ category who have successfully repaid previous loans.
9. What is the role of E-Commerce Export Hubs in this budget?
E-Commerce Export Hubs will be established to help MSMEs and traditional artisans expand into international markets. These hubs will provide a seamless regulatory and logistical framework to simplify trade and export processes.
10. What is the Pradhan Mantri Gram Sadak Yojana (PMGSY) Phase IV?
Phase IV of PMGSY will connect 25,000 rural habitations with all-weather roads, benefiting areas with increasing population and aiding rural development and accessibility.
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