Focus of the India’s budget 2024-25

Source: The post focus of the India’s budget 2024-25 has been created, based on the article “An overdue pivot to human capital and employment” published in “Live Mint” on 24th July 2024

UPSC Syllabus Topic: GS Paper3- Economy-budget

Context: This article discusses the first of Narendra Modi’s third term. It emphasizes job creation, small business support, and fiscal responsibility. The budget includes skilling programs, collateral-free loans for MSMEs, and a focus on sustainable growth and energy security.

What is the focus of the India’s budget 2024-25?

1. Job Creation: The budget emphasizes creating jobs through employment and skilling incentives. It includes a national apprenticeship program and internships for 10 million youth in top-tier companies.
2. Support for Small Businesses: The budget introduces a collateral-free loan scheme and government credit guarantees for small businesses. It also facilitates their access to export markets through e-commerce linkages, recognizing their significant role in value addition, exports, and employment.
3. Fiscal Responsibility: The budget demonstrates fiscal restraint with conservative revenue assumptions. Half of the fiscal surplus from the Reserve Bank of India is used to reduce the deficit, emphasizing fiscal consolidation.
4. Taxation: The budget increases the tax on capital gains. It proposes widening the direct tax net and raising the top tax tier for incomes above ₹1 crore. The import duty on gold is reduced from 15% to 6% to prevent duty leakage and smuggling.
5. Human Capital Investment: The budget stresses the need for massive investment in human capital. Public funds are necessary for primary and secondary education, while higher education and skilling should be funded through student loans.
6. Innovation and Infrastructure: Public-private partnerships are promoted for small modular nuclear reactors and the space economy. The budget also addresses India’s transition away from fossil fuels, aiming for sustainable growth.

Question for practice:

Discuss the key focus areas of India’s budget for 2024-25.