Finance Minister Nirmala Sitharaman's 7th Union Budget introduces important schemes and also emphasises national security, domestic manufacturing, and skill development, aiming to promote economic growth and empower India's youth for the future. What does the Union Budget for FY 2024-25 mean today? Well, In a specific drive to design a more inclusive India, this Budget is a ray of hope for women, youth, the poor and farmers. At its core essence, this Budget fulfils necessities but dreams big instead through nine priorities that would ensure progress in society. By prioritizing the green economy, improving agriculture, increasing employment, innovation and upgrading infrastructure such as roads, buildings and systems; therefore showing us that these are fundamental building blocks on which vibrant economies are built. One of the salient highlights of this year's budget is the introduction of a new tax regime, with adjustments to help about four crore taxpayers. The finance minister unveiled a boost in the standard deduction and a shift in tax brackets expected to offer significant relief. This change is transformative and affirming for taxpayers. This change is expected to ease the burden on lower and middle-class people and encourage more people to adopt this new regime. This keeps the tax exemption for salaries up to Rs. 3 lakh while updating the taxable income ranges to ensure more broad coverage. Widening the 5% tax slab to include a broader income range is a way to make taxation in the country more progressive. This year's budget goes beyond just numbers; it maps out a firm and fair India plan. This year, the government has allotted ₹6,21,940 crore for defence in the budget, yet another feat. The government has emphasised making the country safer and more self-reliant by allotting the defence budget, which makes up 12.9% of the total budget. This increment in the budget aims to fill the gaps by funding big purchases. It will allow the armed forces to add new technologies and advanced gear. This will further improve their readiness for combat. The budget also emphasizes strengthening domestic capabilities, with the Ministry of Defence planning to allocate 75% of its modernisation budget to domestic acquisition to inject ₹1,05,518.43 crore into the Indian economy, promote growth in the defence industry and also to create numerous job opportunities. On top of that, the Border Roads Organization (BRO) is set to receive a financial boost to improve border infrastructure, enhance connectivity, and increase operational readiness in strategic areas. Agriculture received an allotment of ₹1.52 lakh crore to foster the sector’s productivity and resilience. The government has a clear intention to boost farming practices, and that is not only through the allocation of resources but also through the execution of different programs which aim for higher efficiency and strength. Among these efforts, one of the most important is to increase the Minimum Support Prices (MSPs) for the main crops, providing farmers with a much-needed financial safety net. Also, another government scheme, the Pradhan Mantri Garib Kalyan Anna Yojana has been extended for another five years to help over 80 crore farmers. The government also plans to help one crore farmers with natural farming methods in the next two years. This advance will help environment-friendly agriculture's acceptance and assist farmers with branding and certification, making it easy to identify their products with consumers. The Ministry of Agriculture has been allotted a mere 1.22 lakh crores for FY 2025, while the Agricultural Research and Education department has been given only ₹9,941 crore. The authorities take a variety of approaches to ensure that there is continued growth in the field and investment in knowledge power. This is, in turn, expected to advance innovative agriculture technologies that foster productive and sustainable Indian agriculture. The budget saw a 2.3% increase in the education, employment and skill development sectors, making the total allocation 1.48 lakh crore. This increase in budget promotes new internship opportunities for students, providing them with invaluable practical experience and making it easier to integrate into the labour market. This year's budget highlights the comprehensive Prime Minister's Package, which comprises five programmes to be applied for employment generation and skill development. This will help the government close the skills gap and create a labour force with the knowledge that meets the market demand. The Home Ministry’s budget for 2024-25 has surged by 12%, reaching Rs. 2,19,643.31 crore, with a significant focus on internal security. The Central armed police forces are allocated a lion’s share of Rs. 1,43,275.90 crore. Union Territories see substantial support, too, with Jammu and Kashmir receiving Rs. 42,277.74 crore post-Article 370 abrogation. The Andaman and Nicobar Islands are granted Rs. 5,985.82 crore, Chandigarh has been granted Rs. 5,862.62 crore, and Ladakh also has been granted Rs. 5,958 crore. Dadra Nagar Haveli and Lakshadweep are also allotted Rs. 2,648.97 crore and Rs. 1,490.10 crore, respectively. This budget accentuate the government's commitment to regional development and security. The Union Budget for FY 2024-25 focuses on promoting economic growth, lift up defence, strengthening agricultural output, and achieving self-sufficiency. In order to generate jobs, the government has set high objectives for the modernisation and localisation of the defence industry. The agricultural sector will also be benefitted from high MSPs and environment-friendly farming practices, including natural farming. Besides, investments in education for the youth are required to prepare them for employment, narrow down the digital divide and provide them with the necessary skills. This budget is not just about addressing current issues but also about opening doors to new opportunities for everyone. SourceNew Tax Regimes: A happy change for salaried income taxpayers
Defence: An all-time high
Overall allocation division in defence FY 2024-25, data from PIB
Productivity and Resilience in Agriculture
Education, Employment and Skilling
A hike of 12% in allocation for the Home Ministry
Funds allocation to U&T in FY 2024-25
A vision for growth and self-sufficiency
12 Aug 2024
Ashvi Jain
