[Live Updates] Union Budget 2024-25 Key Highlights

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https://www.youtube.com/watch?v=-6oZGe_RHdE

The Union Cabinet headed by Prime Minister Narendra Modi approved the full Budget for 2024-25. Following this, Finance Minister Nirmala Sitharaman will present her seventh budget in the Lok Sabha.

1.48 lakh crore for education, employment and skilling has been allocated.

Source- PIB

The agricultural research will focus on new climate varieties crops with strong climate resilience.

1 crore farmers in natural farming.

Mission for pulses and oilseeds for atma nirbharta- Focus on production, storage of groundnut, sesame, sunflower, etc.

Land survey and registry of farmers 

Source- PIB

Fast tracking growth of rural economy is the main goal

On Budget priorities, the Finance Minister said that in the interim Budget the govt promised to present a detailed roadmap for the pursuit of Viksit Bharat. “In line with the strategy set in the interim Budget, this Budget envisages sustained efforts on the following nine priorities for generating ample opportunities for all --
1) productivity and resilience in agriculture,
2) employment and skilling,
3) inclusive human resource development and social justice,
4) manufacturing and services,
5) urban development,
6) emergency security,
7) infrastructure,
8) innovation R&D,
9) next-gen reforms. 

Will benefit 30 lakh youth and employers.

Source- PIB

Will benefit 50 lakh persons

Source- PIB

Establishment of creshes, women specific skilling programmes

Source- PIB

20 lakh youths 
1000 ITIs will be established
New courses and new skilling loans. 

Source- PIB

Financial support of loans upto 10 lakh rupees for higher education in domestic institutions.

E-vouchers to students for 3% interest subversion.

Source- PIB

Purvodaya for eastern region development of Bihar odisha Andhra Pradesh West Bengal.
Industrial node at Gaya. Good model for development of cultural centres into economic model.
Vikas bhi Virasat Bhi
Additional allocation to support Bihar to be provided. 

Source- PIB 

 109 new high-yielding and climate-resilient varieties of 32 field and horticultural crops will be released for cultivation by farmers.

Recognizing the state\'s need for capital, we will provide capital support of 15000/- crore, with an additional amount in the future years. 

Funds will be provided for essential infrastructure.

Special financial support through multilateral support agencies. 15000 cr will be arranged. Financing and completion of polavaram irrigation project. 

Funds to be provided for additional infrastructure 

Source- PIB

Budget announces new airports, medical facilities and sports infra for Bihar

Rs 26,000 crore to be allocated to highways in Bihar: FM

1000 branches of IPPB in North-eastern States will be set up.

Source- PIB

2.66 lakh crore for rural development of infrastructure. 

Measures-
credit guarantee schemes for MSMEs- Pooling of credit risks of MSMEs.
New credit assessment model for MSMEs- New model to be built by public sector banks. 
credit support to MSMEs during stress period while MSMEs in SMA (Special Mention Account) stage

Source- PIB

will be enhanced to 20 lakhs from 10 lakhs for those entrepreneurs who have availed loans in the Tarun category

Source- PIB

Special attention to MSMEs. 

Credit guarantee scheme for MSMEs will be provided, will operate without any need of collateral. Guarantee cover of 100 crores will be provided.  Borrower will provide the guarantee fees. 

New Assessment model for MSME credit: PSBs will build inhouse capabilities for credit to MSMEs instead of relying on external sources. News credit assessment model based on the digital footprints of MSMEs will be developed. 

The limit for MSMEs for onboarding on the Treds platform has been reduced to 250 cr from 500 cr. 

Source- PIB

24 branches to be opened this year. This will cover 168 out of the 242 clusters.

Source- PIB

Will be set up under the PPP model

Source- PIB

It will be provided to 1 cr youths in 5 years. Internship allowance of Rs 5000 pm along with one time allowance of Rs. 6000

Source- PIB

12 industrial parks under the National Industrial Corridor Development Plan will also be sanctioned.

Source- PIB

Rental Housing with Dormatory type accomodation for industrial workers will be implemented in PPP mode with VGF support

Source- PIB

Integrated technology platform(ITP) for improving IBS code for timely processing, transparency. 

Scheme for facilitating Voluntary Closure of Limited Liability Partnership

National company law tribunal proceedings under IBC has resulted in recovery of 3.3 lakh crore to creditors. 

Reforms to IBC will be initiated. Additional tribunals will be introduced. 

Steps to reform debt recovery 

To support the domestic production and recycling of critical minerals and oversees critical mineral acquistion.

Source- PIB

Will be launched for offshore mining of minerals

Source- PIB

DPI applications at population scale for productivity gains for private sector.

These are planned for credit, e-commerce, education, health, logistics, MSME service delivery and urban governance.

Source-PIB

an investment grade energy audit of traditional Micro and Small Industries for 60 clusters. 

Financial support for energy efficiency measures in these industries. 

The scheme will be replicated to 100 clusters

11 lakh crore for capital expenditure, or 3.4.% of GDP for infrastructure. 

Infra Investment from states will be encouraged at a similar scale. provision of 1.5 lakh crore for Infra Investment priorities of states.  Provision for long term interest free loans.

Private Investment in infrastructure will be encouraged by Viability Gap Funding.

Pradhan Mantri gram Sadak yojana will be launched for road connectivity for 25000 rural habitations, which became eligible as per their population increase.

Irrigation and flood mitigation for different states originating from other countries and natural reasons.

The IBC has resolved more than 1000 companies resulting in direct recovery of Rs 3.3 lakh crore rupees to creditors. In addition, 28000 cases involving over 10 lakh crore rupees have been disposed off even prior to admission. Appropriate changes to the IBC, reforms and strengthening of the tribunal and appellate tribunals will be initiated to speed up insolvency resolution. Additional tribunals will be established, out of those some will be notified to decide cases exclusively under the Companies Act. 

Source- PIB

Aim to make India global tourism place. 

Vishnupad temple at Gaya and Mahabodhi temple at Bodh gaya. temple corridors will be built to make them world class tourism destinations. 

Support for Nalanda to make it a tourist center and developing Nalanda university. 

We will support tourism in Odisha that has scenic beauty, temples, craftsmanship, natural landscapes, wildlife sanctuaries and pristine beaches,” she said.

Steps for reforming and strengthening debt recovery tribunals will be taken.Additional tribunals will be established to speed up recovery. 

Source- PIB

Will work with state governments for development of peri-urban areas so that cities function as growth hubs

Source-PIB

Operationalization of anusandhan Research Fund for basic research and prototype development. 

for Mechanism for development of private sector research at commercial scale, pool of 1 lakh crore will be provided. 

Space economy will be aimed to develop by 5 times in 10 years with venture capital fund of 1 lakh crores.

Framework for the Creative redevelopment of existing brownfield creative cities will be developed.

Source- PIB

Transit oriented Development plans for 14 large cities with population above 30 lakhs will be formulated, along with an implementation and financing strategy. 

Source- PIB

Reduction of duty for import of mobiles and chargers

Exemption of duty completely for many critical minerals used in critical infrastructure.

Solar energy: Many components used in solar panel manufacturing and cells are exempted.  

Under the PM Awas Yojana Urban 2.0, housing needs of 1 cr urban poor and middle class families will be addressed with an investment of Rs. 10 lakh crore rupees. This will include the central assistance of Rs. 2.2 lakh crore rupees in the next 5 years.

Provision of interest subsidy to facilitate loans is also envisaged.

Transparency in rental housing market.

Source- PIB

 1.25 lakh per year capital gain will be exempted. 

Listed assets held for 1 years to be classified as Lon term capital assets, while non-listed asstes should be held for 2 years to be listed as the same.  

LTCG will be taxed by the rate of 12.50%

The Custom Duties on 25 critical minerals exempted and on 2 minerals BCD has been reduced.

Source- PIB

Abolition of Angel tax for all classes of investors. 

Reduction of Corporate tax rate on Foreign Companies from 40% to 35%. 

To bolster the Indian startup ecosystem, the Angel Tax for all classes of investors, has been abolished.

Source- PIB

Securities Transaction Tax on Futures and Options contracts is to be increased to 0.2% and 0.1%.

Income received on buyback of shares to be taxed in the hands of the recipient. 

Source- PIB

Tax deduction on NPS contributions to be raised from 10% of salary to 14% of salary. This will cover government employees as well as private companies in the NPS.

Source- PIB

Standard duction for salaried employes to be increased from 50000 to 75,000. 

Deduction on family Pension to be enhanced from 15000 to 25000. 

New tax regime revisions

0-3 lakh - nil

3-7 lakh - 5%

7-10 lakh - 10%

10 - 12 lakh - 15 %

12 -15 Lakh - 20 % 

Above 15 lakh - 30 % 

Other Major proposals in the Finance Bill relate to withdrawal of an equalisation levy of 2%, expansion of tax benefits to certain funds and entities in the IFSC, and changes to the Benami Transaction Act enforcement.

Source- PIB