Summary of Union Budget 2024-2025
The Union Budget 2024-2025 presented by Finance Minister Nirmala Sitharaman.
1. Budget Theme & Focus Areas:
- Economic Growth: Focus on promoting inclusive growth, employment, skilling, infrastructure, MSMEs, and middle-class welfare.
- Fiscal Deficit: Set at 4.9% of GDP for FY 2024-25, with an emphasis on fiscal consolidation.
2. Key Allocations & Priorities:
- Agriculture & Rural Development:
- Focus on increasing agricultural productivity and climate-resilient crops.
- Financial support for organic farming and the establishment of vegetable production clusters.
- Allocation of ₹2.66 lakh crore for rural infrastructure, including irrigation and flood management projects.
- Employment & Skilling:
- Skilling Program for 20 lakh youth over 5 years.
- 1,000 Industrial Training Institutes (ITIs) to be upgraded for better skilling outcomes.
- Internship scheme for 1 crore youth in 500 top companies over 5 years.
- Wage support for first-time employees and incentives for the manufacturing sector.
3. MSME Support:
- Mudra loan limit increased: From ₹10 lakh to ₹20 lakh for successful ‘Tarun’ category borrowers.
- Self-financing guarantee fund to provide up to ₹100 crore cover for MSMEs seeking credit.
- Financial support for 50 food irradiation units and 100 food safety testing labs to promote MSME exports.
4. Infrastructure Development:
- PM Awas Yojana Urban 2.0: Allocation of ₹10 lakh crore to provide housing for 1 crore urban poor and middle-class families.
- Focus on urban infrastructure with financial assistance for water supply, sewage treatment, and solid waste management projects.
- ₹11,500 crore allocated for irrigation projects in Bihar, and flood management in Assam, Uttarakhand, Himachal Pradesh, and Sikkim.
5. Energy & Sustainability:
- PM Surya Ghar Muft Bijli Yojana: Rooftop solar plants for 1 crore households, enabling free electricity up to 300 units per month.
- Nuclear energy will play a crucial role in India’s future energy mix.
6. Tax Reforms:
- Personal Income Tax:
- New tax slabs for individuals, including a standard deduction increase to ₹75,000.
- Tax rates:
- 0% for income up to ₹3 lakh.
- 5% for income between ₹3-7 lakh.
- 10% for ₹7-10 lakh, 15% for ₹10-12 lakh, 20% for ₹12-15 lakh, and 30% for income above ₹15 lakh.
- Short-term capital gains tax increased to 20% for listed assets, and long-term gains tax set at 12.5% for all asset categories.
- Customs Duty Changes: Reduced duties on mobile phones, gold, and solar energy components. Some duties increased on chemicals and solar glass.
7. Social Welfare & Inclusion:
- Pradhan Mantri Janjatiya Unnat Gram Abhiyan: To uplift tribal communities with ₹2.66 lakh crore for rural development.
- Financial support for women entrepreneurs and street vendors under existing schemes like PM SVANidhi.
- Introduction of the Purvodaya initiative for holistic development in the eastern region (Bihar, Jharkhand, West Bengal, Odisha, Andhra Pradesh).
- The Purvodaya scheme aims to boost infrastructure, employment, and economic growth in India’s eastern regions, making them key drivers for a self-reliant and developed India, contributing to the vision of Viksit Bharat 2047.
- The Purvodaya plan will energize the development of eastern India by boosting key infrastructure like water projects, highways, and power systems.
8. Fiscal Measures & Deficit:
- Total receipts are estimated at ₹32.07 lakh crore, and expenditure is estimated at ₹48.21 lakh crore.
- Tax reforms aim to simplify processes, with increased exemptions for charities and a reduced tax rate for e-commerce operators.
- Vivad Se Vishwas Scheme 2024: For settling tax disputes and reducing litigation.
- The scheme covers disputes pending as of 22 July 2024 across various forums, including the Supreme Court, High Courts, Income Tax Appellate Tribunal, Commissioner (Appeals), and the Dispute Resolution Panel.
- Taxpayers can settle disputes by paying a specified portion of the outstanding dues, with immunity from further proceedings related to the settled matters.
9. Innovation & Research:
- Anusandhan National Research Fund: ₹1 lakh crore fund to support basic research and private sector-driven innovations.
- A new venture capital fund of ₹1,000 crore to expand the space economy.
10. Customs & Duties:
- Customs duties reduced on key goods, including precious metals and critical minerals.
- Import duty exemption for solar energy equipment, facilitating local manufacturing and renewable energy production.
MCQ
When was the Union Budget 2024-25 presented?
A) February 1, 2024
B) March 31, 2024
C) July 23, 2024
D) August 15, 2024
C) July 23, 2024
What is the fiscal deficit target for FY 2024-25 as a percentage of GDP?
A) 4.5%
B) 4.9%
C) 5.5%
D) 5.1%
Answer: B) 4.9%
What is the new standard deduction for salaried employees under the new tax regime?
A) ₹50,000
B) ₹60,000
C) ₹75,000
D) ₹1,00,000
Answer: C) ₹75,000
Under which scheme was Angel Tax abolished in the 2024 Budget?
A) Mudra Loan Scheme
B) Startup India Scheme
C) Pradhan Mantri Vikas Yojana
D) No scheme; it’s a direct reform
Answer: D) No scheme; it’s a direct reform
What is the budget allocation for agriculture and allied sectors in FY 2024-25?
A) ₹1.00 lakh crore
B) ₹1.25 lakh crore
C) ₹1.52 lakh crore
D) ₹2.00 lakh crore
Answer: C) ₹1.52 lakh crore
How many new bio-input resource centers will be established under natural farming initiatives?
A) 5,000
B) 8,000
C) 10,000
D) 15,000
Answer: C) 10,000
What is the allocation for the employment and skilling package under the PM’s five schemes?
A) ₹1.00 lakh crore
B) ₹1.48 lakh crore
C) ₹2.00 lakh crore
D) ₹2.50 lakh crore
Answer: B) ₹1.48 lakh crore
How many youth are expected to benefit from internship opportunities in 500 top companies under the internship scheme?
A) 10 lakh
B) 50 lakh
C) 1 crore
D) 2 crore
Answer: C) 1 crore
What is the capital expenditure allocation for FY 2024-25?
A) ₹8.45 lakh crore
B) ₹9.50 lakh crore
C) ₹11.11 lakh crore
D) ₹12.00 lakh crore
Answer: C) ₹11.11 lakh crore
How many new urban housing units will be developed under PM Awas Yojana Urban 2.0?
A) 50 lakh
B) 1 crore
C) 1.5 crore
D) 2 crore
Answer: B) 1 crore
Which initiative focuses on increasing the space economy by 5 times in 10 years?
A) Digital India Mission
B) Anusandhan Research Fund
C) Space Venture Capital Fund
D) StartUp India Space Mission
Answer: C) Space Venture Capital Fund
What is the proposed exemption limit for capital gains on financial assets under the revised budget rules?
A) ₹50,000
B) ₹1,00,000
C) ₹1,25,000
D) ₹2,00,000
Answer: C) ₹1,25,000