Budget 2024

 

Union Budget 2024 Live Updates: FM Nirmala Sitharaman presents Budget; special financial support for development of capital city in Andhra Pradesh

Updated - July 23, 2024 at 11:56 AM.

By M.k.karikalsozhan  Blog Reporter

 **Union Budget 2024-25 Presentation**: Finance Minister Nirmala Sitharaman has arrived in Parliament to present the Union Budget for 2024-25. This marks her seventh consecutive budget presentation, a record previously held by Morarji Desai. The budget aims to strengthen India's growth trajectory and aligns with the government's vision of transforming India into a 'Viksit Bharat' by 2047.

- **Pre-Budget Meetings**: Prior to the presentation, Sitharaman met with President Droupadi Murmu at Rashtrapati Bhavan. She left the North Block offices of the Finance Ministry with a digital copy of the budget, following the tradition of presenting the budget in a digital format.

- **Economic Context**: The budget is expected to be growth-oriented, with particular attention to the rural economy. The Economic Survey for 2023-24 projects India's GDP growth at 6.5-7% for the current fiscal year, following a robust 8.2% growth in the previous year.

- **Market Reactions**: Ahead of the budget, Asian stocks showed recovery, while the Nifty index in India closed lower for the second consecutive session, indicating cautious trading as investors awaited the budget announcement. The market is expected to experience volatility on the day of the budget presentation.

- **Future Announcements**: Following the general budget, Sitharaman will also present the budget for the Union Territory of Jammu and Kashmir, marking the fifth budget since the abrogation of Article 370.

### Budget 2024: Nalanda to be Developed as a Tourist Centre

July 23, 2024, 12:04 PM - The latest Budget 2024 announcement has highlighted plans to develop Nalanda as a prominent tourist centre. This initiative aims to boost tourism and preserve the historical and cultural significance of the region, which is home to the ancient Nalanda University.

### Boost for Construction Players: Water Supply and Sewerage Treatment in 100 Large Cities

July 23, 2024, 12:04 PM - According to ICRA, the Budget 2024 provisions for improving water supply, sewerage treatment, and stormwater drainage services in 100 large cities are positive for construction players. These developments will not only enhance urban infrastructure but also create substantial employment opportunities.

### MSME Sector: Insights from Sameer Jain, Managing Director at Primus Partners

July 23, 2024, 12:04 PM - Sameer Jain, Managing Director at Primus Partners, stated that MSMEs consume about 50% of the nation’s power and generate over 75% of greenhouse gas emissions. While the budget supports MSMEs to grow and compete globally, Jain emphasised the need for additional support in accessing climate financing to promote the greening of the MSME sector.

### Industrial Node at Gaya on Amritsar-Kolkata Industrial Corridor

July 23, 2024, 12:03 PM - The Budget 2024 has announced the development of an industrial node at Gaya on the Amritsar-Kolkata Industrial Corridor. This project aims to enhance industrial growth and create job opportunities in the region, further boosting the local economy.

### Land Reforms in Urban and Rural Areas

July 23, 2024, 11:57 AM - The Budget 2024 includes comprehensive land-related reforms covering land administration, planning, and management in both urban and rural areas. These reforms aim to streamline land use and improve transparency and efficiency in land transactions.

### CRISIL on MSME Sector Funding Shortage

July 23, 2024, 11:57 AM - CRISIL highlights that the MSME sector in India faces a significant funding shortage of Rs 20-25 lakh crore. With banks accounting for 75% of lending to this segment, public sector banks are encouraged to set up in-house, technology-driven underwriting capacity to serve new borrowers and bring them into the formal credit fold.

### Capital Expenditure on Infrastructure

July 23, 2024, 11:54 AM - This year’s budget has allocated over Rs 11 lakh crore for capital expenditure on infrastructure, which constitutes 3.4% of the GDP. This investment is expected to drive significant growth and development across various sectors.

### Energy Audits and Cleaner Energy for MSMEs

July 23, 2024, 11:54 AM - The Budget 2024 proposes facilitating energy audits for MSMEs in 60 clusters and providing financial support to help these clusters shift to cleaner energy sources. This initiative aims to reduce the carbon footprint of MSMEs and promote sustainable development.

### Development of Indigenous Capacity for High-Grade Steel Production

July 23, 2024, 11:53 AM - The budget supports the development of indigenous capacity for the production of high-grade steel, crucial for various industries. This move is expected to reduce dependence on imports and boost the domestic steel industry.

### Rooftop Solar Panels for Free Electricity

July 23, 2024, 11:50 AM - In line with the interim budget announcement, the PM Surya Ghar Muft Yojana has been launched, enabling households to install rooftop solar panels and receive up to 300 units of free electricity. This scheme aims to promote renewable energy and reduce electricity costs for households.

### Taxonomy for Climate Finance to be Developed

In the latest Budget 2024 live updates, a taxonomy for climate finance is set to be developed, highlighting the government's focus on addressing climate change through structured financial mechanisms. This initiative aims to streamline and categorise climate-related financial activities, ensuring that funds are efficiently allocated to mitigate environmental impacts.

### Financial Sector Vision: Meeting Financing Needs

A comprehensive financial sector vision and strategy document will soon be released, aiming to meet the diverse financing needs across various sectors.

This initiative underscores the government's commitment to bolstering the financial infrastructure, making it more inclusive and robust to support economic growth.

### Funding Initiatives for MSMEs

Shravan Shetty, Managing Director at Primus Partners, applauds the government's focus on providing funding through banks to MSMEs. Key initiatives include:

1. Collateral-free loans via a credit guarantee scheme.

2. Alternative methods to evaluate MSME loan eligibility.

3. Increasing the Mudra threshold to ₹20 lakh for successfully repaid MSMEs.

4. Expanding the reach of institutions like SIDBI.

These measures address the critical issue of credit access for MSMEs, enhancing their ability to thrive.

### Infrastructure Boost in Bihar

Divyam Mour, Research Analyst at Samco Securities, highlights the Finance Minister’s allocation of ₹26,000 crore for highway development in Bihar. This includes the construction of a two-lane bridge over the Ganga and the development of key highways, benefiting companies like GR Infraprojects and cement producers such as Ultratech and Adani Cement.

### Enhancements to Shram Suvidha and Samadhan Portals

The government has announced plans to revamp the Shram Suvidha and Samadhan portals. These enhancements are aimed at improving the delivery of services to the labour sector, including skilling and job matching through an integrated platform.

### Digitisation of Property Records

An IT-based system for property records will be established, focusing on the digitisation of urban land records with GIS mapping. This initiative is expected to bring greater transparency and efficiency in land administration and management.

### Expanding the Space Economy

The government plans to expand the space economy by five times over the next decade. This ambitious initiative aims to enhance India’s capabilities in the space sector, fostering innovation and growth.

### Investment in PMAY-Urban

An outlay of ₹10 lakh crore towards the Pradhan Mantri Awas Yojana (PMAY) - Urban is announced, which is a positive step for the residential real estate sector, according to ICRA. This investment aims to address housing needs and boost the construction industry.

### Skilling and Internship Programs

The Union Budget 2024-25 proposes several initiatives to boost skilling and employment, including:

- Skilling programs and upgradation of Industrial Training Institutes.

- Internships in top companies.

These initiatives aim to enhance the employability of the youth and improve the industrial skill base.

### Development of Nalanda as a Tourist Centre

Nalanda will be developed as a major tourist centre, further promoting India’s rich cultural heritage and boosting the tourism sector.

### Enhanced Water Supply and Sewerage Services

The government will facilitate water supply, sewerage treatment, and storm water drainage services for 100 large cities, which is a positive development for construction players, as noted by ICRA.

### Addressing MSMEs' Climate Financing Needs

Sameer Jain, Managing Director at Primus Partners, highlights the need for additional support for the greening of the MSME sector. This includes easier access to climate financing to help MSMEs reduce their greenhouse gas emissions.

### Development of Industrial Nodes

An industrial node will be developed at Gaya on the Amritsar-Kolkata Industrial Corridor, enhancing regional industrial infrastructure and connectivity.

### Land Reforms in Urban and Rural Areas

The budget includes reforms in land administration, planning, and management for both urban and rural areas, aiming to streamline and modernise land-related processes.

### Addressing MSME Funding Shortage

According to CRISIL, the MSME sector in India faces a significant funding shortage. Public sector banks are encouraged to develop in-house, technology-driven underwriting capacities to better serve new borrowers and integrate them into the formal credit system.

### Major Investment in Infrastructure

This year’s budget allocates over ₹11 lakh crore for capital expenditure on infrastructure, which is 3.4% of GDP. This investment underscores the government’s commitment to building a robust infrastructure framework.

### Energy Audit and Transition Support

The budget will facilitate energy audits for MSMEs in 60 clusters and provide financial support to help them transition to cleaner energy sources. This initiative aims to make MSMEs more energy-efficient and environmentally friendly.

### Indigenous Capacity for High-Grade Steel Production

The development of indigenous capacity for high-grade steel production is a priority, with plans for advanced ultra-supercritical thermal power plants and the establishment of small modular reactors in partnership with private entities.

### Expansion of Industrial Parks

Setting up industrial parks with a plug-and-play model near 100 cities is planned, which is expected to positively impact the warehousing sector.

### Support for the Shipping Industry

Several incentives will be provided to the shipping industry, including reforms in ownership, leasing, and flagging, benefiting the sector.

### Solar Energy Initiatives

https://www.highrevenuenetwork.com/d4gaipx0?key=fa75ecaeeb80cf97ff1cbab6eac4c438 The PM Suryaghar Yojna aims to enable one crore households to access free electricity through rooftop solar panels, promoting renewable energy usage.

### Women’s Property Purchase Incentives

The government is negotiating with states to lower stamp duties for women purchasing property, aiming to empower women economically.

### Promoting Rental Housing for Industrial Workers

Rental housing with dormitory-type accommodation for industrial workers will be facilitated through public-private partnerships, supported by Viability Gap Funding (VGF).

### Socio-Economic Development of Tribal Communities

The Pradhan Mantri Janjatiya Unnat Gram Abhiyan will be launched to improve the socio-economic conditions of tribal communities, covering 63,000 villages and benefiting five crore tribal people.

### Increased Budget for Education, Skilling, and Employment

The budget for education, skilling, and employment sees a significant increase, showcasing the government’s focus on improving employability and education standards in the country.

### Promoting Organic Farming

The establishment of 10,000 need-based bio-inputs units will support the growth of organic farming, addressing the adverse effects of chemical fertilisers on crop yields.

### Enhanced Corporate Exit Mechanisms

The budget proposes measures for accelerated corporate exits, including voluntary closure of LLPs and improved resolution outcomes under the Insolvency and Bankruptcy Code (IBC).

### Supporting MSME Clusters

SIDBI will open more branches to cover MSME clusters, ensuring better access to credit and support for small businesses.

### E-commerce Export Hubs for MSMEs

E-commerce export hubs will be established for MSMEs and traditional artisans, promoting their products in the global market and boosting their economic growth.

These budget initiatives highlight the government's comprehensive approach to fostering economic growth, addressing climate change, and supporting various sectors through targeted financial and structural reforms.

## Budget 2024 Announcements: A Positive Outlook for Tourism Sector — ICRA

The Budget 2024 announcements focus on improving connectivity and infrastructure development, which is a positive move for the tourism sector. These developments are expected to enhance the overall travel experience and attract more tourists, boosting the economy and creating job opportunities in the industry.

## Enhancement of Mudra Loans to Rs 20 Lakh

One of the significant announcements in Budget 2024 is the enhancement of Mudra Loans from Rs 10 lakh to Rs 20 lakh for individuals who have successfully repaid previous loans. This move aims to support small businesses and entrepreneurs, providing them with more substantial financial assistance to expand their operations and contribute to economic growth.

## New Assessment Model for MSME Credit

Budget 2024 suggests a new assessment model for MSME credit, where public banks will develop their in-house models based on asset and turnover criteria. This initiative is expected to streamline the credit process for MSMEs, making it easier for them to access funding and support their growth and competitiveness in the market.

## Separate Guarantee Fund for MSMEs

A separate guarantee fund providing Rs 100 crore to MSMEs has been announced in Budget 2024. This fund aims to support the financial needs of MSMEs, ensuring they have access to the necessary capital to grow and sustain their businesses, thereby strengthening the overall economy.

## Industrial Corridor and Road Connectivity: A Boost for Logistics

The development of the Industrial Corridor (Amritsar-Kolkata) and continued thrust on road connectivity are seen as positives for the logistics sector by ICRA. These initiatives will enhance the efficiency of goods movement across the country, reducing transportation costs and improving supply chain management.

## Credit Guarantee Scheme for Machinery and Equipment Loans

Facilitating term loans for machinery and equipment without collateral through the Credit Guarantee scheme is another highlight of Budget 2024. This scheme aims to support MSMEs in upgrading their technology and equipment, thereby increasing their productivity and competitiveness in the market.

## Comprehensive Package for MSMEs

Budget 2024 includes a comprehensive package for MSMEs, focusing on regulatory changes, financing, and technology adoption. This package aims to support the growth and global competitiveness of MSMEs, providing them with the necessary tools and resources to thrive in a competitive market.

## Interest Subvention for Education Loans

The Budget 2024 announcement of interest subvention for education loans for domestic higher education is a significant step towards making higher education more accessible. This initiative will reduce the financial burden on students and their families, promoting higher education and skill development.

## Formalisation of Workforce and Formal Credit Channelisation

ICRA views the formalisation of the workforce as a step that could improve the channelisation of formal credit in the economy. This move is expected to bring more individuals into the formal financial system, increasing access to credit and financial services for a larger segment of the population.

## Expansion of India Post Payments Bank in North East

Budget 2024 includes the setup of more than 1000 branches of India Post Payments Bank in the North East. This expansion aims to improve financial inclusion and access to banking services in the region, supporting economic development and growth.

## Increased Coverage for Tribal Families

The FY25 budget includes more coverage for Tribal families, aiming to cover 63,000 villages with 5 crore people. This initiative seeks to improve the socio-economic conditions of tribal communities through targeted interventions and support.

## Introduction of Climate-Resilient Seed Varieties

CRISIL highlights the introduction of 109 high-yielding, climate-resilient seed varieties as a positive step. This initiative aims to reduce production volatility and stabilise prices, addressing the impact of inclement weather on crop yields and contributing to food security.

## Socio-Economic Development of Tribal Communities

Budget 2024 focuses on improving the socio-economic conditions of tribal communities by adopting saturation coverage in tribal areas. This approach aims to ensure comprehensive support and development for these communities, addressing their specific needs and challenges.

## Nine Priority Areas Defined in Budget 2024

Vimal Nadar, Head of Research at Colliers India, highlights that Budget 2024-25 clearly defines nine priority areas, including employment and upskilling, inclusive growth, manufacturing augmentation, urban development, and infrastructure growth. These areas are expected to lay the foundation for future budgets and drive India's growth trajectory.

## Focus on Crop-Resistant Seed Varieties and Digital Public Infrastructure

Anand Ramanathan from Deloitte India notes that the budget focuses on important areas such as crop-resistant seed variety distribution, scaling digital public infrastructure, and natural farming. These initiatives aim to improve farm-level productivity and align production with emerging consumption trends.

## Women-Led Development Initiatives

For promoting women-led development, Budget 2024 allocates more than Rs 3 lakh crore for schemes benefiting women and girls. This significant allocation aims to support the empowerment and development of women, contributing to gender equality and economic growth.

## Housing Development Under PMAY2

The budget includes the construction of 3 crore houses in both rural and urban areas under PMAY2, with necessary allocation being made. This initiative aims to address the housing needs of the population, providing affordable and quality housing solutions.

## Capital Support for Andhra Pradesh

Recognising Andhra Pradesh's need for capital, Rs 50,000 crore will be arranged through a multilateral arrangement. This financial support aims to boost the state's development and address its specific economic challenges.

## Development Projects in Bihar

Budget 2024 includes several development projects for Bihar, such as new airports, medical colleges, and sports institutions. Additionally, Rs 26,000 crore has been allocated to Bihar road projects, and a 2400 MW power plant will be established in Peer Panti.

## Education Loans for Students Ineligible for Government Schemes

Education loans of ₹10 lakh will be provided to students who are not eligible for any government schemes. This initiative aims to make higher education more accessible to a broader range of students, supporting their academic and career aspirations.

## New Industrial Centre in Gaya, Bihar

A new industrial centre will be developed in Gaya, Bihar, on the Amritsar-Kolkata route. This development aims to boost the local economy, create job opportunities, and support the region's industrial growth.

## Development of Cultural Centres into Economic Hubs

The Union Budget also includes plans to develop ancient centres of cultural importance into modern centres of the economy. This initiative aims to preserve cultural heritage while promoting economic development and tourism.

## Skilling Loans for Employment

Skilling loans of up to ₹7.5 lakh will be provided, benefiting 25,000 students every year. This initiative aims to support skill development and employment, ensuring that individuals have the necessary skills to succeed in the job market.

## Prime Minister’s Package for Employment and Skilling

The Prime Minister’s Package for employment and skilling includes three schemes announced for 'Employment Linked Incentive'. These schemes aim to create job opportunities, support skill development, and promote inclusive growth across various sectors

### Union Budget 2024: Focus on Agricultural Economy

The Union Budget 2024 announcements have reinforced the government's commitment to strengthening the agricultural economy, with a substantial outlay of ₹1.52 lakh crore. This is seen as a positive move by ICRA, which believes it will boost rural demand significantly. Such a robust allocation is expected to address various challenges in the agricultural sector and support its growth.

### Aditi Nayar on Agricultural Research

Aditi Nayar, Chief Economist and Head of Research & Outreach at ICRA Limited, highlighted the importance of agricultural research in the Union Budget 2024. She emphasised that the focus on developing climate-resilient crop varieties will not only enhance future food security but also mitigate risks related to inflation. This strategic direction is crucial for sustaining agricultural productivity in the face of climate change.

### Financial Aid for Students

In an effort to support higher education, Finance Minister Nirmala Sitharaman announced e-vouchers for 1 lakh students annually. These vouchers will provide a 3 per cent interest subvention on loans. Additionally, there will be financial support for loans up to ₹10 lakh for pursuing higher education in domestic institutions. This initiative aims to make education more accessible and affordable.

### Upgrading Industrial Training Institutes

The budget also includes provisions for upgrading 1,000 industrial training institutes across the country. The Model Skilling Loan Scheme will be revised to benefit 25,000 students each year. This is part of a broader effort to enhance the skill levels of the youth, ensuring they are better equipped for the job market.

### New Skilling Programme

A new centrally sponsored skilling programme under the PM package has been introduced, targeting the skill development of 20 lakh youth over five years. This initiative underscores the government's commitment to improving the employability of the young workforce through structured training and development.

### Support for Working Women

To promote higher participation of women in the workforce, the budget proposes the establishment of working women hostels and creches. These facilities are expected to provide a supportive environment for working women, enabling them to balance their professional and personal responsibilities more effectively.

### Employment Linked Incentive Schemes

Finance Minister Sitharaman announced three new schemes aimed at employment generation. Scheme A offers direct benefit transfers of one month's salary in three instalments for all persons newly entering the workforce. Scheme B focuses on job creation in the manufacturing sector, benefiting 30 lakh youth. Scheme C provides support to employers, covering additional employees in all sectors. These initiatives are designed to stimulate job creation and support economic growth.

### National Cooperation Policy

The budget introduces a National Cooperation Policy to foster greater collaboration among various stakeholders in the agricultural sector. This policy aims to enhance the efficiency and productivity of cooperative societies, ensuring better outcomes for farmers and rural communities.

### Boost to Shrimp Production and Exports

The budget includes financial support for shrimp breeding centres and export financing through NABARD. This initiative is expected to boost shrimp production and exports, contributing to the growth of the aquaculture sector and enhancing export revenues.

### Digital Public Infrastructure for Agriculture

A digital crop survey for Kharif crops will be conducted in 400 districts as part of the government's efforts to leverage technology in agriculture. This digital infrastructure will provide valuable data for improving crop management and productivity.

### Extension of PM Garib Kalyan Anna Yojana

The Pradhan Mantri Garib Kalyan Anna Yojana has been extended for five years, benefiting more than 80 crore people. This scheme aims to ensure food security for the most vulnerable sections of society, providing them with essential food supplies.

### Promotion of Farmer Producer Organisations and Startups

The budget places a strong emphasis on promoting farmer producer organisations, cooperatives, and startups. Large-scale clusters will be developed closer to consumption centres to enhance vegetable production and supply chains. This approach aims to create a more efficient and sustainable agricultural ecosystem.

### Mission for Pulses and Oilseeds

To achieve self-sufficiency in pulses and oilseeds, the budget outlines a mission targeting crops like groundnut, sesame, and sunflower. This initiative aims to reduce dependence on imports and enhance domestic production of these essential commodities.

### Natural Farming Initiative

Over the next two years, one crore farmers will be initiated into natural farming, supported by branding and certification. This initiative aims to promote sustainable agricultural practices, reducing the environmental impact of farming activities.

### Focus on Climate-Resilient Crop Varieties

The budget highlights the release of 109 climate-resilient crop varieties for farmers. This focus on developing crops that can withstand climate variability is crucial for ensuring long-term agricultural productivity and food security.

### Funding for Agricultural Research

Funding will be provided in a challenge mode, including the participation of the private sector, to drive innovation and research in agriculture. This approach aims to harness the expertise of various stakeholders to address critical challenges in the agricultural sector.

### Conclusion

The Union Budget 2024 presents a comprehensive approach to strengthening the agricultural economy, promoting education, enhancing skill development, and supporting employment generation. With significant allocations and well-defined initiatives, the budget aims to address the needs of various sectors, ensuring sustainable growth and development.