Modi 3.0 Budget 2024-25 // Nirmala Sitaraman Presented her 7th Straight Budget

Modi 3.0 Budget 2024-25 // Nirmala Sitaraman Presented her 7th Straight Budget in Parliament

Budget highlights

#1 FM Sitharaman rises to present Modi 3.0's maiden Budget

Modi govt's first major policy announcement, is expected to focus on job creation and boosting consumption, which analysts expect will be positive for sectors such consumer goods, real estate and autos.

#2 India’s economic growth continues to be shining exception, says FM

Inflation moving to 4 percent target: FM Nirmala Sitharaman

PMGKAY was extended for five years benefitting more than 80 crore people: FM

#3 Five schemes to focus on 4.1 crore youth over 5 years with a central outlay of Rs 2 lakh crore, says FM

In this budget, we focus on employment, skilling, MSME, middle class: FM

Five schemes to focus on 4.1 crore youth over 5 years with a central outlay of Rs 2 lakh crore: FM

#4 FM lists out roadmap to pursue nine priorities for India opportunity, these are

1. Agriculture

2. Employment

3. Inclusive development

4. Manufacturing and Services

5. Urban Development

6. Energy

7. Infrastructure

8. Innovation, R&D

9. Next Generation Reforms

#5 FM on agriculture scheme

Agri research to be transformed to focus on raising productivity and climate resilient varieties: FM Sitharaman

Transforming agri research: Comprehensive review of farm research setup to be undertaken, to developing climate resilient crop varieties

#5 Energy Security will be one of the Nine Priorities

Finance Minister Nirmala Sitharaman lists energy security as one of the nine priorities of the government. This follows the Economic Survey 2023-24 highlighting that India needs to target a diversified set of energy sources to ensure energy security while meeting nationally determined contribution (NDC) targets. India’s energy needs are expected to grow 2-2.5 times by 2047, given the growing economy, but the renewable energy sector still faces challenges.

India’s energy mix in 2022-23 was primarily dominated by fossil-fuel, accounting for almost 84 percent, including coal, oil, and natural gas combined.

#6 FM Sitharaman approves Rs 1.52 lakh crore for agri and allied sectors

#7 FM Sitharaman says one-month salary support to enterprises for first time employees

DBT of one month salary to first time employees up to Rs 15,000, eligibility limit Rs 1 lakh per month: FM

210 lakh youth to benefit: FM

Job creation of manufacturing, incentive at specified scale with respect to EPFO contribution. 30 lakh youth entering employment and their employers to benefit: FM

#8 Three schemes for employment-linked incentives

A: One month's wage for freshers

B: Job creation in manufacturing

C: Support to employers

#9 FM announces new airports, medical facilities and sports infra for Bihar

Budget announces new airports, medical facilities and sports infra for Bihar

Rs 26,000 crore to be allocated to highways in Bihar: FM

#10 FM announces Special Financial Support for Andhra Pradesh

--Budget to facilitate 15,000 crore for Andhra with additional amounts in future years

--Govt committed to financing and completion: FM

#11 FM's boost for women development

Women-led development More than 3 lakh crore for schemes benefiting women and girls: FM Sitharaman

#12 2.66 lakh cr provision for rural development, says FM

#13 FM announces special attention on MSMEs

This budget provides special attention to MSMEs and manufacturing: FM Sitharaman

Credit guarantee scheme for MSMEs in the manufacturing sector

Facilitating term loans for purchase of machinery introduced

Formulated package to finance technology support to MSMEs

#14 Mudra loans to be enhanced to 20 lakh from 10 lakh, says FM Sitharaman

Limit of Mudra loans to extend to Rs 20 lakh from Rs 10 lakh for those who have availed and paid previous loans: FM Sitharaman

#15 Jobs budget!

Govt will launch a comprehensive scheme to offer internship in top companies to one crore youth in five years: FM Sitharaman

#16 FM on DPI applications

Propose of development of DPI applications at population scale in credit, e commerce, law and justice, corporate governance: FM Sitharaman

#17 Urban housing outlay of Rs 10 lakh crore announced

Urban housing: Housing needs of 1 crore urban poor and middle class families to be addressed with investment of Rs 10 lakh crore: FM

PM Surya Ghar Muft Bijli Yojana has been launched to install to rooftop solar plans for 1 crore households

#18 FM keeps capex at Rs 11.11 lakh crore or 3.4% of GDP

Finance Minister Nirmala Sitharaman on July 23 kept India’s FY25 capex outlay unchanged at Rs 11.11 lakh crore in the first Union Budget of the third Narendra Modi government -- the same as was earmarked in February. This is higher than the last year’s revised estimate of Rs 9.5 lakh crore.

The government will end up spending 3.4 percent of the Budget on capex compared with 3.2 percent in the previous year, and almost double of what it spent five years ago.

The growth in capex has stayed in double digits in six of the last seven years and is likely to slow down from 28.4 percent growth experienced in FY24 and 24.8 percent in the year before.

#19 Financial assistance for Sikkim, Assam, Uttarakhand, HP -- states impacted by floods

Will provide assistance to Assam and Himachal Pradesh for flood management, says FM

#20 Rs 1,000 crore boost for space economy!

--Space economy expanded 5 times in next 10 years.

--Boost of Rs 1,000 crore for space sector announced.

#21 Budget announcements to speed up the IBC process is commendable

FM Sitharaman’s Budget announcements to speed up the IBC process is commendable. Government to set up integrated technology system for IBC for better outcomes. Decision to initiate appropriate changes to IBC will augur well for faster asset resolution; creation of additional dedicated tribunals will be an enabler. However, the real change will depend on execution on the ground.

#22 Capex budget unchanged a relief

Capex budget at Rs 11.11 lac cr which is unchanged from Interim budget is a relief, but the announcements so far show overt accommodation of coalition partners, that will not go down positively for the markets

#23 Govt's package for skilling and collaboration

The fourth scheme under the Prime Minister's package for skilling and collaboration with state governments and Industry

--20 lakh youth will be skilled over a 5 year period

--1000 ITIs will be upgraded in Hub and Spoke arrangements with outcome orientation

--The Model Skill Loan scheme will be revised to facilitate loans up to Rs 7.5 lakh with a guarantee from government promoted fund

--For helping our youth who have not been eligible for any benefit under govt schemes, I am happy to announce a financial support for loans up to Rs 10 lakh in higher education in domestic institutions

#24 Priority 5 in Budget Urban Development

• Urban Housing: Urban 2.0. one crore houses for urban poor, allocation of ten lakh crore rupees.

• Enabling policies and regulations for transparent renting house markets

• Services for 100 large cities for urban development

• Street Markets: Svanidhi has transformed lives of street vendors. Support for urban haats

• Stamp Duty: Encourage states to charge high stamp duty to moderate the rates for all. Slashing of duties for women

#26 Fiscal deficit lowered to 4.9% of GDP, market borrowing unchanged at Rs 14.13 lakh crore

Fiscal deficit for FY25 further scaled down to 4.9 from 5.1% in interim Budget: FM Sitharaman

Aim to reach a fiscal deficit of below 4.5% by FY26: FM

#27 Good news for phone buyers!

BCD (basic customs duty) of mobile phones, mobile chargers reduced to 15 percent: FM

#28 Customs duty on critical minerals

FM Exempts customs duties on 25 critical minerals, and lowers BCD for two of them

#29 Fiscal consolidation update

Receipts for FY25 seen at Rs 32.07 lakh crore

Expenditure for FY25 seen at Rs 48.21 lakh crore

#30 Comprehensive review of Income Tax Act of 1961 to be completed in six months

#31 Centre to borrow Rs 14.01 lakh crore in FY25, lower than interim Budget estimate

The Centre marginally cut the gross borrowing target from the markets in 2024-25 to Rs 14.01 lakh crore to finance its fiscal deficit of 4.9 percent of the GDP, Finance Minister Nirmala Sitharaman announced on July 23, in a speech presenting the full Budget for 2024-25.

This is Rs 1.4 lakh-crore lower compared to the estimate of Rs 15.43 lakh crore for FY24.

#32 TDS rate on e-commerce operators to be reduced to 0.1 percent from 1 percent

#33 Limit of LTCG hiked from 10% to 12.5%

Short term gains on certain financial assets will be 20 percent, rest is applicable tax rate

Long term capital gains will be 12.5 percent

LTCG Exemption limit also hiked from 1Lk to 1.25  Lk.

Listed financial assets held for more than a year will be classified as long term

#34 Relief for startups! Angel tax abolished, says FM Sitharaman

#35 Corporate tax rate on foreign companies reduced to 25%

#36 STT on F&O hiked to 0.02% and 0.1%, says FM Sitharaman

#37 FM revises tax structure under new tax regime

Under new tax regime, standard deduction hiked to Rs 75,000 from Rs 50,000

Salaried employee will save Rs 17,500 in income tax

#38 Revised tax slabs under new regime

0-3 lakh - Nil

3-7 lakh - 5%

7-10 lakh - 10%

12-15 lakh - 20%

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