Union Budget 2024: 10 Major Aspects of the Union Budget

Union Budget 2024 Update: Finance Minister Nirmala Sitharaman delivered her seventh consecutive Union Budget 2024-25 today (July 23), marking a historic achievement. She has now surpassed former Prime Minister Morarji Desai’s record of presenting six consecutive budgets as finance minister from 1959 to 1964. This milestone makes her the first finance minister to deliver seven consecutive budget speeches during the Budget Session of Parliament.

The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, includes several significant initiatives and changes aimed at fostering economic growth and development across various sectors in India. Discover the 10 major aspects of the Union Budget 2024, including the youth internship scheme, support for MSMEs, substantial rural development allocation, stable income tax rates, increased infrastructure investment, railway enhancements, ‘Lakhpati Didi’ scheme, and a focused fiscal deficit target for economic stability and growth.

Here are some key highlights of Union Budget 2024:

1. Youth Internship Scheme: A new initiative aims to offer internships at top companies to one crore youth over the next five years, enhancing their employability and work experience.
2. Support for MSMEs: A new credit guarantee scheme will facilitate term loans for MSMEs in the manufacturing sector, offering guarantees of up to ₹100 crore without requiring collateral.
3. Rural Development: ₹2.66 lakh crore has been allocated for rural development to improve infrastructure and support various projects aimed at enhancing living standards and economic opportunities in rural areas.
4. Income Tax: No changes were made to the tax rates for both direct and indirect taxes. However, the Finance Minister highlighted that tax collections have doubled over the past decade, and the average processing time for tax returns has been reduced to 10 days.
5. Infrastructure Investment: The capital expenditure outlay has been increased by 11.1% to ₹11.11 lakh crore. This investment is expected to have a significant multiplier effect on economic growth and employment creation.
6. Railway Enhancements: Plans include converting 40,000 normal rail bogies to Vande Bharat coaches, expanding metro rail projects, and developing three major railway corridors to improve connectivity and reduce logistics costs.
7. ‘Lakhpati Didi’ Scheme: This scheme aims to empower rural women, with a target to enhance the number of women benefiting from self-help groups to three crore from the current two crore.
8. Fiscal Deficit: The fiscal deficit target has been set at 4.9% of GDP for 2024-25, with a goal to reduce it to 4.5% by FY26.

Here Are The 10 Major Aspects Of The Union Budget 2024

1. Agricultural Support and Resilience: The budget allocates significant funds to enhance agricultural productivity and resilience. This includes support for farmers and allied activities such as irrigation, crop insurance, and rural infrastructure development. These measures aim to increase farmer incomes and ensure sustainable agricultural practices​ ​.
2. Employment and Skilling Initiatives: To address unemployment, the budget introduces several schemes aimed at creating job opportunities, particularly for the youth. This includes providing loans of up to Rs 10 lakh for higher education, and offering incentives for first-time job seekers such as one-month wage subsidies. The focus is on enhancing skills and employability through vocational training and apprenticeship programs​ .
3. Infrastructure Development: Capital expenditure has been significantly increased, with a 11.1% rise to Rs 11.11 lakh crore. Major investments are directed towards the development of railways, urban infrastructure, and connectivity projects. This includes the conversion of 40,000 rail bogies to Vande Bharat standards, and the establishment of three new railway corridors to improve logistics and passenger safety​ ​.
4. Energy Security and Green Initiatives: The budget places a strong emphasis on renewable energy to achieve India’s net zero emissions target by 2070. Measures include incentives for biofuels, rooftop solar projects, and offshore wind energy. The government is creating a conducive environment for renewable energy entrepreneurs and promoting resource-efficient economic growth through the “Panchamrit” framework​ ​.
5. Inclusive Human Development and Social Justice: Social equity and justice are prioritized, with initiatives aimed at supporting marginalized communities. This includes programs for women, children, and disadvantaged groups to ensure their inclusion in the economic growth process. The budget also focuses on education and healthcare improvements to enhance overall human development​ ​.
6. Boosting Manufacturing and Services: The budget aims to strengthen the manufacturing and services sectors, with a particular focus on supporting MSMEs (Micro, Small, and Medium Enterprises). Measures include expanding credit facilities, ensuring timely payments, and providing non-tax benefits for periods of growth. These initiatives are designed to foster innovation, enhance productivity, and create jobs within these sectors​ ​.
7. Innovation and R&D: A substantial Rs 1 lakh crore corpus is allocated for research and development, offering 50-year interest-free loans to fund innovative projects. This support aims to remove financial barriers for young entrepreneurs and foster cutting-edge technological advancements. By investing in R&D, the government seeks to drive economic and technological progress​ ​.
8. Fiscal Responsibility: The budget maintains a fiscal deficit target of 5.1% of GDP for FY25, reflecting the government’s commitment to fiscal prudence. This disciplined approach aims to stabilize the economy, attract foreign investment, and ensure sustainable growth. The focus is on balancing expenditure with revenue to maintain economic stability​ .
9. Tourism and Logistics Development: Investments in tourism infrastructure and logistics are aimed at boosting economic growth and employment in these sectors. This includes developing iconic tourist destinations, enhancing port connectivity, and improving amenities on islands. Such initiatives are expected to stimulate the tourism industry, which is predominantly comprised of MSMEs​ .
10. Next-Gen Reforms: The budget introduces a range of reforms aimed at modernizing the economy and ensuring sustainable growth. These include digital infrastructure enhancements, education and healthcare improvements, and policies to foster innovation and entrepreneurship. The goal is to create a dynamic and resilient economy that can adapt to future challenges and opportunities​ ​.