Finance Minister Nirmala Sitharaman presented her seventh consecutive Union Budget 2024-25 today, July 23, marking a historic milestone in the Budget Session of Parliament. This makes her the first finance minister to deliver seven consecutive Budget speeches, surpassing former Prime Minister Morarji Desai's record of six consecutive budgets between 1959-64.

Key Announcements:

Revised Tax Rates:

• Increased Standard Deduction: The budget introduces an increased standard deduction and revised tax rates for salaried individuals under the new tax regime.
   
• New Tax Regime:
  • ₹0-3 lakh: Nil tax
  • ₹3-7 lakh: 5%
  • ₹7-10 lakh: 10%
  • ₹10-12 lakh: 15%
  • ₹12-15 lakh: 20%
  • Above ₹15 lakh: 30%
     

Customs Duty Changes:

• Gold and Silver: Adjustments in customs duty on gold and silver.
• Mobile Phones: Changes in customs duty on mobile phones and other goods.
   

Capital Expenditure and Infrastructure:

• Capex Spend: The Centre's FY25 capital expenditure (Capex) is set at ₹11.1 lakh crore, unchanged from the Interim Budget, with infrastructure spending at 3.4% of GDP.
   

Budget Highlights:

Employment and Skilling Initiatives:

• Five Major Schemes: Targeting 4.1 crore youth over five years with a central outlay of ₹2 lakh crore.
• Internship Scheme: A comprehensive internship program for one crore youth in top companies over five years.
• Employment-linked Incentives: Including one month's wage support for first-time employees.
• Women-Specific Programs: Skilling programs aimed at increasing workforce participation among women.
   

MSME and Manufacturing Support:

• Focus on MSMEs: Special attention to the MSME and manufacturing sectors.
• Credit Guarantee Scheme: Term loans for machinery purchase and technology support package for MSMEs.
• SIDBI Expansion: The Small Industries Development Bank of India (SIDBI) will open 24 new branches to serve MSME clusters.
   

Financial Initiatives:

• Mudra Loan Limit: Increased from ₹10 lakh to ₹20 lakh for previous borrowers.
• Education Loans: Financial support for higher education loans up to ₹10 lakhs in domestic institutions.
• IBC System Integration: Development of an integrated technology system for the Insolvency and Bankruptcy Code (IBC).
   

Agriculture and Rural Development:

• Rural Development Fund: ₹2.66 lakh crore allocated for rural development.
• Agricultural Research Transformation: Focus on productivity and climate-resilient crop varieties.
• Natural Farming Initiative: Introducing one crore farmers to natural farming over two years.
   

Infrastructure and Regional Development:

• Rental Housing: Public-private partnership (PPP) mode rental housing for industrial workers.
• Financial Support for Andhra Pradesh: Special allocation of ₹15,000 crore.
• Infrastructure for Bihar: New airports, medical facilities, and sports infrastructure.
   

Economic Outlook:

• Inflation Target: Moving towards a 4% target.
• Economic Growth: India's economic growth described as a "shining exception."
• Focus Areas: Emphasis on job creation and boosting consumption, benefiting sectors like consumer goods, real estate, and automobiles.
   

Nine Priority Areas:

1. Agriculture
2. Employment
3. Inclusive Development
4. Manufacturing and Services
5. Urban Development
6. Energy
7. Infrastructure
8. Innovation and R&D
9. Next Generation Reforms

Women-Led Development:

• Allocation for Women and Girls: Over ₹3 lakh crore allocated for schemes benefiting women and girls.
   

Social Welfare:

• Extension of PMGKAY: The Pradhan Mantri Garib Kalyan Anna Yojana extended for five years, benefiting over 80 crore people.
   

Digital and Technological Advancements:

• Digital Public Infrastructure (DPI): Development of DPI applications for credit, e-commerce, law and justice, and corporate governance.
   

In conclusion, the Union Budget 2024-25 reflects a comprehensive approach to addressing key sectors such as employment, MSME support, financial initiatives, agriculture, infrastructure, and social welfare, aiming to bolster economic growth and ensure inclusive development.