Friday, 22 November 2024
Friday, 22 November 2024
As Finance Minister Nirmala Sitharaman unveils the Union Budget 2024-25, we delve into a sector-by-sector breakdown of allocations and initiatives. This budget, coming on the heels of a general election, reflects the government's priorities and vision for India's economic future.
Defence
India has set aside Rs 6,21,940 crore for defence spending in 2024-25, virtually keeping the same amount allocated in the interim budget amid the continuing border row with China in eastern Ladakh as well as concerns over the evolving security situation in the strategic waterways. The total allocation for defence is 4.79% higher than the outlay made in the financial year 2023-24. A total of Rs 1.72 lakh crore was set aside to the military for capital expenditure that largely includes purchasing new weapons, aircraft, warships and other military hardware. For 2023-24, the budgetary allocation for capital outlay was Rs 1.63 lakh crore while the revised estimates put the amount at Rs 1.57 lakh crore.
Education, employment, and skill development
The education sector has received an allocation of Rs 1.48 lakh crore. The government plans to update 1,000 ITIs and provide internships to one crore youth. Further, it has introduced financial assistance for domestic higher education loans up to Rs 10 lakh. With this, about 20 lakh young people will be skilled over a five-year period. The government will provide one crore young people with internships, offering a Rs 5,000 stipend and Rs 6,000 one-time assistance, with costs shared between the government and companies' CSR funds.
Housing
The Pradhan Mantri Awas Yojana (PMAY) has been allocated Rs 10 lakh crore. Under the PM Awas Yojana (Grameen), the government aims to construct two crore homes in rural areas over five years. Additionally, the government announced central assistance of Rs 2.2 lakh crore over the next five years to meet housing requirements of 1 crore urban poor and middle class families under the PM Awas Yojana (Urban) and proposed interest subsidy to provide loans at affordable rates.
Agriculture and allied sectors
The agriculture and allied sectors have received an allocation of Rs 1.52 lakh crore. The budget outlines a natural farming program targeting one crore farmers in two years, along with the establishment of 10,000 bio-input resource centers. The government has also announced the introduction of 109 new seed varieties for 32 field and horticultural crops.
Railways
The railways sector has been allocated Rs 2.52 lakh crore, marking a 75% increase from fiscal 2022. The budget introduces three economic railway corridor programs under the PM Gati Shakti initiative. Plans to upgrade 40,000 rail bogies to Vande Bharat standards have been announced.
Infrastructure
The budget allocates ₹11.11 trillion for capital spending on infrastructure in 2024-25, representing an 11% increase from the previous year. This investment is aimed at infrastructure development and job creation across various sectors of the economy.
Women welfare
The Finance Minister has announced initiatives to increase women's employment rates. These include the creation of hostels and partnerships for specialized skill-training programmes. The budget allocates over ₹3 lakh crore for programmes that assist women and girls.
Tourism
The tourism sector has been allocated Rs 2,479 crore for FY25. The budget proposes a new ranking system for tourist destinations based on the quality of their amenities. Specific development plans have been announced for the Mahabodhi Temple and Vishnupad Temple in Bihar, Rajgir, Nalanda University, and various attractions in Odisha.
Healthcare
The healthcare sector has seen a marginal increase to Rs 89,287 crore. While the inclusion of ASHA workers, Anganwadi workers, and helpers under Ayushman Bharat is positive, critics might point out the need for a more substantial increase given the lessons of the pandemic. Additionally, ₹2,143 crore has been set aside for production-linked incentive (PLI) schemes in the pharmaceutical sector.
Green energy
The Ministry of New and Renewable Energy has been allocated Rs 19,100 crore. The budget outlines plans for a 100 MT coal gasification and liquefaction capacity by 2030, and a phased-in mandatory compressed biogas and compressed natural gas blending program. It also includes measures to promote e-buses for public transportation and develop offshore wind energy.
IT and telecom
The IT and telecom sectors have been allocated Rs 1,16,342 crore in the Union Budget 2024-25. The Finance Minister has announced a reduction in basic customs duty for mobile phones, chargers, and circuit boards by 15%.
Research and innovation
The budget introduces a new program for deep-tech defence technologies. It also proposes a Rs 1 trillion fund with a 50-year interest-free loan to support growth, employment, and development initiatives.
Free power and solarisation
The budget introduces a rooftop solarisation scheme offering 300 units of free power per month. This initiative, under the PM Surya Ghar Muft Bijlee Yojana, is set to benefit about one crore households.
Sports
The sports sector has been allocated Rs 3,442.32 crore. Within this, the Khelo India program, aimed at promoting sports at the grassroots level, has been assigned Rs 900 crore, an increase of Rs 20 crore from the previous year.
