Highlights of Budget 2024-25: Fostering Employment, Skilling, MSMEs, and the Middle Class

Introduction and Overview

The Budget 2024-25 introduces a comprehensive framework designed to propel India towards a more developed and inclusive economy. With a pronounced emphasis on fostering employment, enhancing skill development, and bolstering Micro, Small, and Medium Enterprises (MSMEs), this budget aims to address key areas critical to the nation’s growth trajectory. Moreover, significant provisions have been earmarked to support the middle class, underscoring the government’s commitment to equitable economic advancement.

One of the cornerstone objectives of Budget 2024-25 is to stimulate infrastructure development across the country. By allocating substantial funds to modernize transportation networks, enhance urban infrastructure, and develop rural areas, the budget aims to create a robust foundation for sustained economic growth. This infrastructural upliftment is expected to generate numerous employment opportunities, further driving economic activity and improving living standards.

Another pivotal focus of this budget is on agricultural support, ensuring that the farming community receives the necessary resources to thrive. By increasing investment in agricultural technology, irrigation systems, and rural credit facilities, the budget seeks to enhance productivity and income levels for farmers. This initiative aligns with the broader goal of attaining food security and promoting sustainable agricultural practices.

Additionally, the budget highlights the importance of skilling programs to equip the workforce with contemporary skills required in the evolving job market. By fostering partnerships with industry leaders and educational institutions, the government aims to bridge the skill gap and enhance employability. This strategic move is pivotal for creating a ‘Viksit Bharat 2024,’ where a skilled workforce can drive innovation and economic prosperity.

Overall, the Budget 2024-25 sets a progressive agenda that prioritizes inclusive growth, infrastructure development, and economic resilience. By addressing the needs of various sectors and segments of the population, this budget aspires to build a stronger, more self-reliant India. As we delve deeper into the specific allocations and initiatives, the underlying theme of fostering a ‘Viksit Bharat 2024’ becomes increasingly evident.

Agriculture and Allied Sectors

The Union Budget 2024-25 has earmarked a substantial ₹1.52 lakh crore for the agriculture and allied sectors, underscoring the government’s commitment to bolstering agricultural productivity and supporting farmers. This comprehensive allocation aims to address key challenges in the sector and promote sustainable growth, ensuring a prosperous future for India’s agrarian economy.

A significant portion of the budget is dedicated to enhancing irrigation infrastructure through the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY). This scheme seeks to expand irrigation coverage, thereby increasing the efficiency of water usage and ensuring that farmers have reliable access to water resources. This initiative is expected to significantly boost crop yields and improve the overall resilience of the agricultural sector against climate-related adversities.

In addition, the budget has allocated funds for the Pradhan Mantri Fasal Bima Yojana (PMFBY), which provides comprehensive crop insurance coverage to farmers. This scheme is vital in mitigating the financial risks associated with crop failures due to natural calamities, pests, and diseases. By securing farmers’ incomes, PMFBY plays a crucial role in stabilizing the agricultural economy and encouraging farmers to invest in advanced farming techniques and practices.

The budget also emphasizes the development of allied sectors such as fisheries and animal husbandry. The Blue Revolution scheme continues to receive substantial funding to enhance the productivity and profitability of India’s fisheries sector. Investments in aquaculture infrastructure, cold chain logistics, and market linkages are aimed at maximizing the potential of this sector, which is a significant source of livelihood for millions of people.

Similarly, the National Livestock Mission (NLM) is being fortified with increased allocations to boost animal husbandry activities. This mission focuses on genetic improvement, better feed and fodder availability, and disease control measures, all of which are essential for enhancing livestock productivity and ensuring the economic well-being of farmers engaged in this sector.

Overall, the strategic allocation of ₹1.52 lakh crore in the Budget 2024-25 for agriculture and allied sectors is poised to drive substantial improvements in agricultural productivity. By supporting farmers through targeted schemes and initiatives, the government aims to create a resilient and prosperous agricultural ecosystem, contributing to the broader vision of a Viksit Bharat 2024.

Infrastructure Development

The Budget 2024-25 has earmarked a significant sum of ₹2.66 lakh crore for rural development and infrastructure. This allocation underscores the government’s commitment to enhancing regional connectivity and fostering economic growth through robust infrastructure projects across the country. Notably, ₹26,000 crore has been dedicated specifically for the development of highways in Bihar, a move poised to significantly improve transportation networks within the state. This substantial investment is expected to reduce travel time, facilitate smoother logistics, and boost economic activities by connecting remote areas to major urban centers.

In addition to the focus on Bihar, the budget has allocated ₹15,000 crore for the development of a new capital city in Andhra Pradesh. This ambitious project aims to establish a modern urban center that can serve as a hub for administrative, commercial, and cultural activities. The development of this new capital is anticipated to create numerous job opportunities, attract investments, and serve as a catalyst for regional growth. The planned infrastructure will include state-of-the-art facilities, efficient public transport systems, and sustainable urban planning practices.

Furthermore, the budget’s emphasis on infrastructure extends beyond these large-scale projects. It encompasses a range of initiatives aimed at enhancing rural infrastructure, including the development of roads, bridges, and irrigation systems. Such investments are crucial for improving the quality of life in rural areas, providing better access to markets, and supporting agricultural productivity. Enhanced rural infrastructure is expected to bridge the urban-rural divide, fostering a balanced regional development.

Overall, the budget’s strategic focus on infrastructure development is a critical component of the broader vision of “Viksit Bharat 2024”. By investing in essential infrastructure, the government aims to lay a strong foundation for sustained economic growth, improved connectivity, and enhanced quality of life for citizens across the nation.

Support for MSMEs and Labor-Intensive Manufacturing

The Budget 2024-25 brings a significant focus on bolstering the Micro, Small, and Medium Enterprises (MSMEs) sector, recognizing its crucial role in the economic fabric of Viksit Bharat 2024. One of the cornerstone initiatives is the introduction of a robust credit guarantee scheme designed to enhance the financial stability and growth potential of MSMEs. This scheme aims to facilitate easier access to credit, thereby enabling businesses to expand, innovate, and create jobs.

Another pivotal measure is the provision of collateral-free loans, which is expected to alleviate one of the primary challenges faced by small businesses—securing funding without sufficient collateral. By removing this barrier, the government aims to empower entrepreneurs to start new ventures and scale existing operations, contributing to the overall economic development and employment generation.

In addition to these initiatives, the enhancement of the Mudra loan limit from ₹10 lakh to ₹20 lakh stands out as a significant step. This increase is poised to provide a substantial boost to small-scale entrepreneurs who require higher amounts of capital to grow their businesses. Mudra loans have historically played a vital role in supporting micro enterprises, and this enhancement is likely to amplify their impact in the coming years.

Collectively, these financial measures underscore the government’s commitment to fostering a supportive ecosystem for MSMEs and labor-intensive manufacturing. By providing accessible and substantial funding options, the budget aims to stimulate growth in this sector, which is pivotal for achieving the vision of Viksit Bharat 2024. These steps are not only expected to enhance the operational capabilities of MSMEs but also to create a ripple effect of economic benefits, including increased employment opportunities and a more vibrant manufacturing landscape.

Education and Skilling

The Budget 2024-25 introduces significant measures to bolster education and skilling, aiming at fostering a “Viksit Bharat 2024.” One of the standout provisions includes financial support of up to ₹10 lakh for students pursuing studies in domestic institutions. This initiative is designed to make higher education more accessible and affordable, thereby empowering future generations with the knowledge and skills required to thrive in an increasingly competitive job market.

In addition to supporting education, the budget also addresses employment opportunities for first-time employees. A noteworthy initiative involves providing one month’s wage in three installments to new employees registered with the Employees’ Provident Fund Organisation (EPFO). This measure is intended to ease the financial transition for young professionals entering the workforce, offering them a stable foundation as they begin their careers.

Furthermore, the budget emphasizes the importance of skilling and reskilling the workforce to meet the demands of a rapidly evolving economy. It includes several programs aimed at enhancing vocational training and skill development. These initiatives are designed to equip individuals with the necessary competencies to excel in various industries, thus contributing to the overall economic growth and development of the nation.

Additionally, the government plans to collaborate with industry leaders and educational institutions to create a more integrated approach to skilling. This partnership aims to ensure that the skills being imparted are aligned with current industry requirements, thereby increasing employability and productivity. By fostering such collaborations, the budget seeks to bridge the gap between education and employment, creating a more seamless transition for individuals entering the job market.

Overall, the Budget 2024-25 underscores the government’s commitment to enhancing educational support and skilling initiatives. These measures are expected to play a crucial role in building a robust and skilled workforce, ultimately contributing to the vision of a “Viksit Bharat 2024.”

Tax Reforms and Fiscal Policy

The Budget 2024-25 introduces several pivotal tax reforms aimed at creating a more efficient and equitable fiscal environment. A significant highlight is the unveiling of a new tax regime with revised tax slabs, designed to simplify the tax structure and make compliance less cumbersome for taxpayers. The revised slabs are expected to provide relief to the middle class, thereby enhancing their disposable income and purchasing power.

In an effort to align the tax system with global standards and ensure a more progressive taxation framework, the budget has proposed an increase in both long-term and short-term capital gains tax rates. This change is poised to impact investors differently based on their investment horizons and portfolios. While long-term investors may see a marginal increase in their tax liabilities, the move aims to curb speculative trading and promote more stable investment practices.

For salaried individuals, the introduction of an increased standard deduction is a welcome change. This adjustment is intended to alleviate the tax burden on salaried employees, ensuring they have more take-home pay and enhancing their financial well-being. The increased deduction is particularly beneficial for the middle class, aligning with the broader objectives of fostering a “Viksit Bharat 2024” by empowering this crucial demographic.

A noteworthy reform is the abolition of the angel tax, which has been a contentious issue for startups and investors. By eliminating this tax, the government aims to create a more conducive environment for innovation and entrepreneurship. This move is expected to attract more investment into the startup ecosystem, fostering growth and job creation in the emerging sectors.

Collectively, these tax changes are designed to strike a balance between revenue generation and economic stimulation. By addressing the needs of different economic segments, the Budget 2024-25 aims to drive a holistic development agenda that supports both growth and equity. These measures are crucial in the broader context of fiscal policy, aiming to sustain economic momentum while ensuring inclusive prosperity.

Capital Expenditure and Financial Allocations

The Budget 2024-25 has earmarked ₹11.11 lakh crore for capital expenditure, equating to approximately 3.4% of the nation’s Gross Domestic Product (GDP). This substantial allocation underscores the government’s commitment to bolstering infrastructure and stimulating economic growth. The capital expenditure plan aims to enhance the nation’s productive capacity and support the vision of ‘Viksit Bharat 2024’.

Among the various sectors benefiting from these financial allocations, a remarkable ₹1 lakh crore has been dedicated to research and innovation. This investment seeks to fuel advancements in technology, foster a culture of innovation, and position India as a global leader in various scientific domains. The allocation is expected to drive growth in industries such as artificial intelligence, biotechnology, and renewable energy, thereby creating significant employment opportunities.

In addition to the focus on research and innovation, the budget outlines a gross market borrowing target of ₹14.01 lakh crore. This borrowing is crucial for financing the capital expenditure plans and ensuring that the necessary funds are available to execute large-scale infrastructure projects. The borrowing strategy is designed to balance the need for investment with fiscal prudence, aiming to avoid undue pressure on the financial markets.

The financial allocations also extend to crucial sectors such as healthcare, education, and rural development. These sectors are pivotal for achieving sustainable and inclusive growth, thereby contributing to the overall objective of a developed India by 2024. The emphasis on these areas reflects the government’s holistic approach to development, ensuring that the benefits of growth are widespread and inclusive.

Overall, the Budget 2024-25’s focus on capital expenditure and strategic financial allocations highlights the government’s proactive stance in fostering economic resilience and long-term prosperity. By prioritizing key sectors and ensuring robust investment, the budget lays a strong foundation for achieving the vision of ‘Viksit Bharat 2024’.

Social Welfare and Housing

The Budget 2024-25 emphasizes enhancing social welfare and housing, with a particular focus on delivering tangible benefits to vulnerable populations. A key initiative within this framework is the Pradhan Mantri Awas Yojana (PMAY), which aims to construct an additional three crore houses. This ambitious target seeks to address the pressing issue of housing shortages, thereby significantly improving living conditions for millions of citizens.

In tandem with the PMAY, the budget has also earmarked a substantial ₹10 lakh crore for the Pradhan Mantri Urban Housing 2.0 scheme over the next five years. This investment underscores the government’s commitment to urban development and ensuring that urban housing infrastructure meets the growing demands of the population. The scheme’s funding is expected to facilitate the construction and improvement of urban housing, aligning with the broader goal of fostering a ‘Viksit Bharat 2024’ (Developed India 2024).

These housing initiatives are not merely about providing shelter; they are integral components of a broader strategy aimed at uplifting socio-economic standards and ensuring equitable growth. By improving access to quality housing, these programs directly contribute to the well-being of disadvantaged groups, including low-income families and marginalized communities. The allocation of resources for these schemes also reflects a commitment to sustainable urbanization, addressing issues such as overcrowding and inadequate living conditions in urban areas.

Furthermore, the budget’s focus on social welfare extends beyond housing. It encompasses a range of schemes designed to provide comprehensive support to underserved populations. These include healthcare initiatives, education programs, and employment opportunities, all of which are crucial for enhancing the quality of life and fostering inclusive growth. By integrating these social welfare measures within the budget, the government aims to build a resilient and inclusive society, ensuring that the benefits of economic growth are widely shared.