Finance Minister Nirmala Sitharaman announced the Union Budget for 2024-25, which includes a modest increase in the defence budget. The total allocation for the defence sector has been raised by INR 500 crore from the interim figures revealed earlier this year. The new budget sets the total defence allocation at INR 6,21,940 crore.
A significant portion of the budget is reserved for domestic procurement. Defence Minister Rajnath Singh confirmed that INR 1,05,518.43 crore will be spent on procuring equipment and services from Indian firms. This move is aimed at boosting self-reliance in defence, aligning with the government’s goal of “Atmanirbharta” or self-sufficiency.
Increase in Border Roads Organisation Funding
The Border Roads Organisation (BRO) sees a 30 percent increase in its capital allocation. This suggests a continued emphasis on enhancing infrastructure along the border, as well as investing in the latest machinery and technology to support border infrastructure projects.
Comparison with Previous Budget
Comparing this year’s budget to previous figures reveals a slight contraction. While the new budget allocation for 2024-25 is higher than the initial estimates of INR 5.93 lakh crore for the previous fiscal year, it is lower than the revised estimate of INR 6.23 lakh crore from the last fiscal year. This represents a decrease of 0.38 percent from the revised figures.
Capital Expenditure Overview
For capital expenditure, which focuses on modernising the military, the budget has increased to INR 1.72 lakh crore. Last year, the capital budget was revised down to INR 1.57 lakh crore due to unspent funds. This year’s allocation aims to enhance military capabilities through new systems and technologies.
The budget figures show varied spending trends among the armed forces. The Indian Air Force managed to spend more than its allocation, whereas both the Army and the Navy did not fully utilise their budgets.
The new budget reflects the government’s continued commitment to strengthening national defence while focusing on domestic procurement and infrastructure development.
About the Author
Mr. Radhesh Tarang Shah, is a management student at Institute of Management, Nirma University. He has a passion for writing articles and poems. He has experience as a financial analyst, author, news writer, marketer and social worker.
To rev up the activities of the agriculture sector, the Finance Minister, Nirmala Sitharaman, revealed that an allocation of INR 1.52 lakh crore for agriculture and allied sectors was made in the fiscal year 2024-25. It has made a big hunk of investment in the industry towards supporting farmers and increasing agricultural sector productivity.
Promotion of Natural Farming
One of the key features of this year’s budget is that 10 million farmers will be introduced to natural farming in two years. This will reduce dependency on chemical fertilisers and pesticides, improve soil health, and increase farmers’ profitability. The government will support the farmers by giving certification and branding to make a shift towards natural farming easier.
It is said that the government would like to promote large blocks of vegetable production in the country to ensure a continuous vegetable supply. The vegetable production clusters are to be set up near major consumption centres to improve the supply chain and reduce market shortages.
Focus on Climate-Resilient Crops and Digital Farming
It also, in a way, emphasizes the development of climate-resilient crops. It will involve an overall makeover of agricultural research for developing and releasing 109 crop varieties that are high-yielding and climate-resilient. In addition, 10,000 bio-input centres will be opened to make sure the production, storage, and marketing of oilseeds are done promptly.
Enhancing Digital Infrastructure in Agriculture
Under this, the government would work in collaboration with state governments to enhance digital public infrastructure in agriculture. A digital crop survey for Kharif would be conducted in 400 districts in FY25, while issuance of Jan Samarth-based Kisan Credit Cards would be enabled in five states. This digital framework would provide farmers with vital information, including weather forecasts, crop advisory services, and market prices.
Comprehensive Review of Agricultural Research
The government will roll out a comprehensive review of the agricultural research set up in line to concentrate on increasing productivity and developing climate-resilient varieties. Funding through a challenge mode will also be tied up with the private sector and be steered by domain experts from within the government and outside.
The plan envisages continuous financial support to shrimp farming, processing, and export through NABARD. A network of Nucleus Breeding Centres for Shrimp Broodstocks will be established to increase the productivity and profitability of the aquaculture sector.
Promotion of Digital Public Infrastructure
The government will encourage digital public infrastructure for agriculture, with an impetus on entering the details of six crore farmers and their lands into registries over the next three years. Through this development, it aims to make agriculture easier to handle and, thereby, bring ease of access to all associated services for farmers.
Large-Scale Vegetable Clusters
Large-sized vegetable clusters would be set up closer to major consumption centres to enhance the supply of fruits and vegetables. The government will promote Farmer-Producer Organizations FPOs, cooperatives, and startups working in the vegetable supply chain for collection, storage, and marketing.
National Cooperation Policy
It has been proposed to introduce National Cooperation Policy [NCP] to promote overall growth in the cooperative sector in the Country.
Continued Support for Fertilizer Subsidies
The fertilizer subsidy has been left unchanged at INR 1.64 lakh crore, which is the same as what was proposed in the interim budget. Support of this sort assures a continuous supply of cheap fertilizers to farmers for raising crops.
Commitment to Food Security
The food subsidy has also been pegged at INR 2.05 lakh crore, which is the same as that in the Interim Budget. That readily shows the commitment of the government to food security for people.
About the Author
Ms Akshita Siddhapura is a Business Analytics student at SCMS-B, passionate about finance and research. She has a keen interest in financial analysis and strategic growth, showing a strong commitment to business and finance.
On July 23, 2024, the Union Minister of Finance and Corporate Affairs, Shrimati Nirmala Sitharaman, presented the Union Budget 2024-25 in Parliament. Here are the key highlights of the budget presented by her.
PM Modi said in x post that budget is for Viksit Bharat:
The budget estimates for 2024-25 include total receipts other than borrowings amounting to INR 32.07 lakh crore. The total expenditure is projected at INR 48.21 lakh crore. The net tax receipt stands at INR 25.83 lakh crore. The fiscal deficit is 4.9% of GDP. The government aims to reduce the deficit to below 4.5% next year. Inflation remains low and stable, moving towards the 4% target, with core inflation at 3.1%.
The government’s focus on managing the fiscal deficit and keeping inflation low demonstrates a commitment to economic stability. The target is to bring the deficit below 4.5% next year. This is a very ambitious target, but it is necessary for sustainable growth.
Focus on Employment, Skilling, MSMEs, and the Middle Class
A significant focus of the budget is on employment, skilling, MSMEs and the middle class. A package of five schemes under the Prime Minister’s initiative aims to provide employment and skilling opportunities to 4.1 crore youth. This will be provided over a five-year period.
This focus on employment and skilling is crucial for addressing the unemployment issue and boosting the capabilities of the workforce. This can lead to increased productivity and economic growth.
Prime Minister’s Package of Five Schemes
The Prime Minister’s package includes:
Scheme A: First Timers: Provides up to INR 15,000 in three installments to first-time employees registered with the EPFO.
Scheme B: Job Creation in Manufacturing: Offers incentives to employees and employers regarding their EPFO contributions for the first four years.
Scheme C: Support to Employers: Government reimburses up to INR 3,000 per month for two years towards EPFO contributions for each additional employee.
These schemes are designed to incentivize job creation and support new employees. Especially in the manufacturing sector, jobs will be created which is essential for economic growth and employment.
A new centrally sponsored scheme aims to skill 20 lakh youth over five years. 1,000 Industrial Training Institutes (ITIs) will be upgraded in a hub and spoke arrangement.
By this, they will enhance the skill set of the youth which is vital for meeting the demands of a modern economy and improving employability.
New Scheme for Internships
A new scheme will offer internships in 500 top companies to 1 crore youth over five years. They will provide internships in top companies. This will give youth valuable industry experience and improve their job prospects.
The budget outlines nine priorities to achieve a developed India (‘Viksit Bharat’):
Productivity and resilience in agriculture
Employment and skilling
Inclusive human resource development and social justice
Manufacturing and services
Urban development
Energy security
Infrastructure
Innovation, research, and development
Next-generation reforms
These priorities cover a broad spectrum of sectors essential for comprehensive and balanced economic development.
Priority 1: Productivity and Resilience in Agriculture
An allocation of INR 1.52 lakh crore is made for agriculture and allied sectors. New high-yielding and climate-resilient crop varieties will be released, and 1 crore farmers will be introduced to natural farming.
Investing in agriculture and introducing resilient crop varieties are crucial steps towards sustainable farming and food security.
Priority 2: Employment & Skilling
Schemes for employment linked incentives, establishment of working women hostels and women-specific skilling programs are announced in the budget.
These initiatives aim to increase women’s participation in the workforce. By this, they will support overall employment and skill development.
Priority 3: Inclusive Human Resource Development and Social Justice
Key projects include the development of industrial nodes, power projects and special financial support to states under various schemes.
These projects aim to promote regional development and address social justice issues. This ensures inclusive growth.
Priority 4: Manufacturing & Services
Various schemes to support MSMEs will be provided. This includes introduction of a credit guarantee scheme, enhanced Mudra loans and financial support for food irradiation units.
Supporting MSMEs is vital for economic growth. They are significant contributors to employment and GDP.
Priority 5: Urban Development
Plans include transit-oriented development, investment in urban housing and support for street markets.
Urban development initiatives are necessary to accommodate the growing urban population and improve living standards.
Priority 6: Energy Security
Policies for energy transition, promoting pumped storage projects, and partnering with the private sector for nuclear energy R&D are highlighted.
Ensuring energy security through diverse and sustainable sources is crucial for long-term economic stability.
Priority 7: Infrastructure
The budget allocates INR 11,11,111 crore for capital expenditure on infrastructure and INR 1.5 lakh crore for state governments to support infrastructure investment.
Investing in infrastructure is essential for economic growth and improving connectivity and services.
An Anusandhan National Research Fund and a financing pool for private sector-driven research and innovation are proposed.
Promoting R&D and innovation is key to maintaining competitiveness and fostering technological advancements.
Priority 9: Next Generation Reforms
Reforms include digitization of land records, integration of job portals and a new pension plan for minors. Implementing next-generation reforms will streamline processes, enhance efficiency and provide better services to citizens.
The Union Budget 2024-25 presents a comprehensive plan to address various sectors of the economy. They are specially aiming for sustainable and inclusive growth.
About the Author
Mr. Radhesh Tarang Shah, is a management student at Institute of Management, Nirma University. He has a passion for writing articles and poems. He has experience as a financial analyst, author, news writer, marketer and social worker.
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