The first budget of the Modi government's third term is here. Finance Minister Nirmala Sitharaman presented the budget for 2024-25 on Tuesday. While starting the budget, Nirmala Sitharaman said that people have placed their trust in the Modi government.
The budget highlighted the states of Bihar under Nitish Kumar and Andhra Pradesh under Chandrababu Naidu. Both states received several gifts. The central government is set to spend over Rs 40,000 crore in Bihar and more than Rs 15,000 crore in Andhra Pradesh.
This budget has also focused on jobs and skill development. The government has announced incentives for companies to create more jobs. Additionally, a promise has been made to provide housing for one crore families. There have been significant announcements regarding income tax as well. New tax regimes have been modified, while the old ones remain unchanged.
Now that the budget is presented and its impact will be felt throughout the year, let's see what has been allocated from the Modi government's first budget of the third term:
Who got what?
- Farmers:
Emphasis on natural farming. Assistance to be provided to one crore farmers in the next two years. Introduction of 109 varieties of 32 crops. Digital survey of crops to be conducted. Six crore farmers and their lands to be registered. In the budget for 2024-25, Rs 1.52 lakh crore has been allocated for agriculture and related sectors.
- Jobs:
Three schemes launched to boost employment. The government to provide Rs 15,000 assistance to those registering for the first time with EPFO if their salary is less than Rs 1 lakh in their first job. This will benefit 2.10 crore youth. Employers to receive incentives for providing jobs. The government will offer Rs 3,000 monthly EPFO contribution for employees earning less than Rs 1 lakh.
- Education:
The Model Skill Loan Scheme will be revised to offer loans up to Rs 7.5 lakh. Higher education loans up to Rs 10 lakh to be provided nationwide, with the government bearing 3% interest. E-vouchers to be introduced, benefiting one lakh students annually.
- Women:
Rs 3 lakh crore allocated for schemes benefiting women and girls. Working women's hostels to be built. Hostels and creches to enhance women's participation in the workforce.
- Bihar:
Development of Patna-Purnia Expressway and Buxar-Bhagalpur Expressway with an investment of Rs 26,000 crore. A new two-lane bridge over the Ganga River in Buxar. Initiation of power projects worth Rs 21,400 crore. Rs 11,500 crore allocated for flood management. New airports, medical, and sports projects to be launched.
- Andhra Pradesh:
A special package of Rs 15,000 crore to be provided. Polavaram irrigation project to be completed soon. Funds to be allocated for water, electricity, railways, and roads in the Kopathi area of Visakhapatnam-Chennai Economic Corridor and Orvakal area of Hyderabad-Bangalore Economic Corridor.
- Industry:
Loan limit under the Mudra scheme increased from Rs 10 lakh to Rs 20 lakh. Trading limit reduced from Rs 500 crore to Rs 250 crore to include more buyers on the TRADE platform. Financial assistance for establishing 50 multi-product food irradiation units in the MSME sector. E-commerce export hubs to be developed under PPP mode for MSMEs to sell products internationally.
- Infrastructure:
Industrial hub to be developed in Gaya on the Amritsar-Kolkata Economic Corridor. Phase-4 of the PM Gram Sadak Yojana to commence, constructing roads in 25,000 rural habitations. Rs 11,11,111 crore to be spent on infrastructure.
- Youth:
Opportunity for one crore youth to intern in the top 500 companies over the next five years. Under the PM Package, a stipend of Rs 5,000 per month and a one-time assistance of Rs 6,000 during a 12-month internship will be provided to youth.
- Housing:
One crore homes to be provided to poor and middle-class families under PM Awas Yojana-Urban 2.0. Investment of Rs 10 lakh crore. Interest subsidy to be offered for affordable housing loans.
- Tourism:
Assistance for developing the Vishnupad Temple in Gaya and the Mahabodhi Temple Complex in Bodh Gaya into world-class pilgrimage sites. Nalanda to be developed as a tourism center. Support for making Odisha a tourist hotspot.
- Health:
Customs duty on three more cancer drugs waived, making them more affordable. Customs duty on X-ray tubes and flat panel detectors used in X-ray machines reduced.
- Electronics:
Basic customs duty on mobile phones and chargers reduced to 15%. Import of certain telecom equipment to become more expensive.
- Income Tax:
No tax on income up to Rs 3 lakh under the new tax regime. 5% tax on income between Rs 3-7 lakh, 10% on Rs 7-10 lakh, 15% on Rs 10-12 lakh, 20% on Rs 12-15 lakh, and 30% on income above Rs 15 lakh annually. Standard deduction limit increased from Rs 50,000 to Rs 75,000.
- Corporate Tax:
TDS rate on e-commerce operators reduced from 1% to 0.1%. Corporate tax rate for foreign companies reduced from 40% to 35%.
How much will the government spend?
The central government will spend over Rs 48.20 lakh crore in 2024-25. Over Rs 11 lakh crore will be spent on infrastructure alone. The defense ministry has been allocated more than Rs 6.21 lakh crore, with Rs 1.72 lakh crore earmarked for the procurement of arms.
The government's major revenue sources will be income tax and GST, contributing 19% and 18% respectively. To fund expenditures, the government will borrow 27% of the funds needed. The largest expenses will be the 21% share of taxes given to states and 16% on central schemes. Additionally, 19% of the budget will be spent on interest payments on loans.
