India’s 2024-25 Budget: Key Developments and Reactions

India’s Union Budget for the fiscal year 2024-25 was presented by Finance Minister Nirmala Sitharaman on July 23, 2024. This budget outlines the government’s financial plan, focusing on key areas such as employment, skilling, infrastructure development, and tax reforms.

The Union Budget of India is the annual financial statement presented by the government, outlining its revenue and expenditure plans for the upcoming fiscal year. The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, focuses on economic growth, job creation, infrastructure development, and fiscal consolidation. With key announcements on tax reforms, support for MSMEs, and increased capital expenditure, this budget aims to strengthen India’s economic resilience while maintaining fiscal discipline. Let’s explore the major highlights and implications of Budget 2025 for various sectors.

Budget Estimates 2024-25:

• Total Receipts (excluding borrowings): ₹32.07 lakh crore.
• Total Expenditure: ₹48.21 lakh crore.
• Net Tax Revenue: ₹25.83 lakh crore.
• Fiscal Deficit: Targeted at 4.9% of GDP, with an aim to reduce it below 4.5% in the following year.

Key Highlights:

1. Employment and Skilling Initiatives:
   • A comprehensive package of five schemes has been introduced to provide employment and skill development opportunities to 4.1 crore youth over a five-year period.
   • Establishment of 10,000 bio-input resource centers to promote natural farming practices.
2. Infrastructure Development:
   • A record capital expenditure allocation of ₹11.11 lakh crore, equivalent to 3.4% of GDP, has been set to bolster infrastructure projects across the country.
     
3. Tax Reforms:
   • Income Tax: The income tax slabs under the new tax regime have been revised to provide relief to taxpayers.
   • Angel Tax: The government has abolished the “angel tax,” which previously applied to investments exceeding the fair market value of shares in unlisted companies.
   • Capital Gains Tax: Adjustments have been made to both short-term and long-term capital gains tax rates.
     
4. Support for MSMEs and the Middle Class:
   • The budget places a strong emphasis on supporting Micro, Small, and Medium Enterprises (MSMEs) and the middle class through various incentives and schemes aimed at fostering growth and stability.
     
5. Agriculture and Rural Development:
   • Implementation of Digital Public Infrastructure (DPI) for Agriculture to cover farmers and their lands within three years, aiming to enhance agricultural productivity and income.
6. Fiscal Discipline:
   • The government remains committed to fiscal consolidation, with plans to reduce the fiscal deficit and ensure that central government debt as a percentage of GDP declines from 2026-27 onwards.
     

The Union Budget of India presents a strategic roadmap for economic growth, focusing on infrastructure, employment, and tax reforms. With an emphasis on fiscal discipline and sustainable development, the government aims to balance growth with financial stability. As industries, businesses, and taxpayers analyze its impact, this budget sets the tone for India’s economic trajectory in the coming years.

The Budget 2025 Date & Time will be crucial for shaping future policies, with expectations of further economic reforms. As we move forward, the implementation of these proposals will determine their effectiveness in driving India’s progress. The Union Budget reflects the government’s strategy to stimulate economic growth while maintaining fiscal prudence. By focusing on employment, infrastructure, and tax reforms, the budget aims to build a resilient and inclusive economy for the future.