GUWAHATI: Finance Minister Nirmala Sitharaman presented her seventh consecutive Budget for the fiscal year 2024-25 on July 23, surpassing the record previously held by former PM Morarji Desai. This Budget marks the first presentation by the BJP-led NDA government since its re-election in June.
Unlike in 2019, when the BJP held 303 seats in the Lok Sabha, the party now has 240 seats. The dynamics of coalition politics and the aspirations of regional partners play a crucial role in the current political landscape. The reduction in the BJP's seat count indicates potential dissatisfaction and dissent regarding the economic policies implemented during its second term from 2019 to 2024. The electorate appears to have expressed disappointment with the government's handling of their concerns, making this Budget highly anticipated.
For the fiscal year 2023-24, the fiscal deficit was 5.63% of GDP, with a target set at 5.1% for 2024-25. Given the significant contribution of personal tax to overall direct tax collections, the government is unlikely to introduce measures that would substantially reduce tax revenue.
Ahead of the Union Budget, Ms. Sitharaman presented the Economic Survey for the financial year 2024 in the Lok Sabha on July 22. The Survey projected India's GDP growth for the financial year 2025 to be between 6.5% and 7%. This forecast is lower than the estimated economic growth rate of 8.2% for the previous financial year.
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-Union Budget 2024 proposes revision of the Model Skill Loan Scheme to help 25,000 students every year.
-E-vouchers for loans up to ₹10 lakh for higher education in domestic institutions are to be given directly to 1 lakh students every year for annual interest subvention of 3% of the loan amount.
-Govt to provide financial support for loans up to ₹10 lakh for higher education in domestic institutions
-Finance Minister Nirmala Sitharaman says, "Our govt will implement three schemes for employment-linked incentives as part of the Prime Minister's package. These will be based on enrollment in the EPFO and focus on recognition of the first-time employees and support to employees and employers. "
-Higher participation of women in the workforce by setting up working women hostels in collaboration with industry and establishing creches.
-Over 100 branches of India Post Payment branch will be set up in the Northeast region to expand the banking services:
-Centre will provide internship and internship opportunities in 500 top companies to 1 crore youths in 5 years. They will gain exposure for 12 months to real-life business environments. Internship allowance of ₹5000/month along with one-time assistance ₹6000 will be given. Companies are expected to bear training costs and 10% of the internship course from their CSR funds.
-Govt proposes ₹26,000 crore for various road projects in Bihar
-12 industrial parks sanctioned under National Industrial Corridor Development Programme.
-To enhance domestic value addition in gold and precious metal jewellery in the country, the customs duty on gold and silver will be reduced to 6% and that of platinum to 6.4%
-SOP to be formed for TDS defaults and simplify and rationalise the compounding guidelines for such defaults, Says N. Sitharaman