Union Budget 2024 - 25

The Union Budget is the annual budget of the Republic of India. It is presented every year in February generally by the Union Finance Minister. On this page, you can read all about what a budget is, and what the Union Budget 2024-25 talks about. This is a crucial topic for the upcoming UPSC exam.

Union Budget 2024

The Union Budget is also known as the Annual Financial Statement. Article 112 of the Constitution of India lays down that it is a statement of the estimated expenditure and receipts of the Government for a particular year. 

• The Union Budget maintains the account of the finances of the government for the fiscal year (from 1st April to 31st March).
• The Budget is presented to the Parliament on 01 Feb (until 2016, it was presented on the last working day of February) so that it can materialise before the commencement of the new financial year which starts on 1st April. 
• In 2017, a 92-year-old tradition was broken when the railway budget was merged with the Union Budget and presented together.
• The Budget should be passed by the Lower House of Parliament or the Lok Sabha before it can come into effect.
• The Union Budget is divided into the Revenue Budget and the Capital Budget. For more on these terms, check Union Budget – Important Economic Terms.
• In the Union Budget, the disbursements and receipts of the government comprise the various types of government funds in India namely, the Consolidated Fund of India, the Contingency Fund and the Public Account. 
• The Economic Survey of India is released ahead of the presentation of the Budget.

Highlights of Budget 2024-25 for UPSC

The Budget 2024 is not actually a full budget since 2024 is an election year. So, this time around, Finance Minister Nirmala Sitharaman presented what is known as the Interim Budget.

Budget Focus Areas

Garib Kalyan, Desh ka Kalyan

• Direct Benefit Transfer (DBT) resulted in savings amounting to ₹2.7 lakh crore.
• 25 crore individuals transitioned out of multidimensional poverty through Garib Kalyan, Desh ka Kalyan initiatives.
• DBT contributed to savings totalling ₹2.7 lakh crore.
• Provision of credit assistance extended to 78 lakh street vendors under the PM-SVANidhi scheme.

Empowering the Youth

• 1.4 crore youths received training as part of the Skill India Mission.
• PM Mudra Yojana sanctioned 43 crore loans, fostering entrepreneurial aspirations among the youth.

Welfare of Farmers-Annadata

• PM-KISAN provided direct financial aid to 11.8 crore farmers.
• PM Fasal Bima Yojana offered crop insurance to 4 crore farmers.
• Integration of 1,361 mandis into eNAM facilitated trading worth ₹ 3 lakh crore.

Nari Shakti

• Women entrepreneurs received 30 crore loans under the Mudra Yojana.
• Female enrolment in higher education rose by 28 percent over a decade.
• STEM courses witnessed 43 percent female enrolment.
• 83 lakh Self-Help Groups assisted 1 crore women to become Lakhpati Didis.

Sustainable Development

• Commitment to meet ‘Net Zero’ by 2070:
  • Viability gap funding allocated for wind energy projects.
  • Establishment of coal gasification and liquefaction capacity.
  • Gradual implementation of mandatory blending of CNG, PNG, and compressed biogas.
  • Financial aid provided for the procurement of biomass aggregation machinery.
• Initiative for rooftop solarization: facilitating 1 crore households to receive up to 300 units of free electricity monthly.
  • Integration of e-buses into the public transport network.
  • Support for the enhancement of the e-vehicle ecosystem, including manufacturing and charging infrastructure.
  • Introduction of a new scheme for biomanufacturing and bio-foundry to promote eco-friendly alternatives.
• Other Achievements: 
  • Over 10 crore LPG connections distributed under PMUY.
  • Distribution of 36.9 crore LED bulbs, 72.2 lakh LED tube lights, and 23.6 lakh energy-efficient fans through UJALA.
  • Installation of 1.3 crore LED street lights under SNLP.

Strategy for Amrit Kaal

Infrastructure and Investment

• Execution of three significant railway corridor initiatives under PM Gati Shakti aimed at enhancing logistics effectiveness and cutting costs.
• Encouragement of foreign investment through the negotiation of bilateral investment treaties.
• Enlargement of current airports and comprehensive establishment of new airports as part of the UDAN scheme.
• Advancement of urban renewal through the implementation of Metro rail and NaMo Bharat initiatives.

Inclusive Development

• The Aspirational Districts Programme aims to expedite state development, including employment generation.

Health:

• Encouragement of Cervical Cancer Vaccination for girls aged 9-14 years.
• Acceleration of Saksham Anganwadi and Poshan 2.0 initiatives for enhanced nutrition delivery and early childhood care.
• Rollout of the U-WIN platform for Mission Indradhanush immunization efforts.
• Extension of health coverage under the Ayushman Bharat scheme to all ASHA, Anganwadi workers, and helpers.

Housing

• Pradhan Mantri Awas Yojana (Grameen) is on track to reach the goal of 3 crore houses.
• An additional target of 2 crore houses is set for the next 5 years.
• Introduction of the Housing for Middle-Class scheme to encourage middle-class individuals to purchase or construct their own homes.

Tourism

• States will receive encouragement to develop iconic tourist centres to attract business and foster local entrepreneurship.
• Provision of long-term interest-free loans to States to incentivise development efforts.

Agriculture and Food Processing

• Promotion of private and public investment in post-harvest activities by the government.
• Expansion of the application of Nano-DAP across all agro-climatic zones.
• Formulation of the Atmanirbhar Oilseeds Abhiyaan Strategy to achieve self-sufficiency in oilseeds.
• Development of a comprehensive program for dairy development.
• Stepping up the implementation of the Pradhan Mantri Matsaya Sampada Yojana to boost aquaculture productivity, double exports, and create more employment opportunities.
• Establishment of 5 Integrated Aquaparks.

Resilient Performance of the Indian Economy

Achievements of Taxation Reforms

• Direct Tax Collections more than trebled in the last 10 years.
• Number of return filers swelled to 2.4 times. 
• Faster refunds: Reduction in average processing time of returns from 93 days (2013-14) to 10 days (2023-24).
• Average monthly Gross GST collections doubled to ₹1.66 lakh crore in FY24.
• Increase in tax buoyancy of State revenue from 0.72 (2012-16) to 1.22 in the post-GST period (2017-23).
• Decline in import release time since 2019 by: – 47 per cent at Inland Container Depots,  28 per cent at Air Cargo complexes and 27 per cent at Sea Ports.
• Positive sentiment about GST- 94% of industry leaders view the transition to GST as largely positive and 80% of respondents feel GST has led to supply-chain optimisation.

Tax Proposals

• Continuity in taxation: Certain tax benefits to Start-ups and investments made by sovereign wealth funds/pension funds, tax exemption of some IFSC units earlier expiring on 31.03.2024 extended up to 31.03.2025
• Withdrawal of outstanding direct tax demand: – Up to ₹25,000 pertaining up to FY10 and Up to ₹10,000 for FY11-FY15
• Expected to benefit approx. 1 crore taxpayers 
• Retention of same tax rates: –
  • For direct and indirect taxes, including import duties
  • For Corporate Taxes-22% for existing domestic companies, 15% for certain new manufacturing companies
  • No tax liability for taxpayers with income up to ₹7 lakh under the new tax regime

Allocation for Specific Ministries

Allocation to Major Schemes (in ₹ crore)

Allocation to Major Schemes (in ₹ crore)