Finance Minister Nirmala Sitharaman has already concluded the pre-budget consultation with about nine stakeholder groups, and the Union Budget 2025 is slated to be presented on February 1, also marking Sitharaman’s eighth budget.
While this year’s key announcements are awaited, it’s worth revisiting the groundwork laid in the Union Budget 2024, presented on July 23, following an interim budget earlier in February.
The 2024 budget, guided by the mission of ‘Viksit Bharat by 2047,’ emphasised inclusive growth with a focus on farmers, the underprivileged, women, and youth, anchored in themes of employment, skilling, MSME support, and middle-class empowerment.
Fiscal discipline remained a priority, with the fiscal deficit for FY25 targeted at 4.9 per cent of GDP, a reduction from 5.6 per cent in FY24. As we prepare for the upcoming budget, here’s a recap of the key measures introduced under the nine priorities of Union Budget 2024:
From 50 lakh jobs to internships for 1 Cr youth
Sitharaman’s employment initiatives focused on creating jobs, enhancing skill development, and providing opportunities for youth. The PM’s Employment Linked Incentive Package set a target of creating 50 lakh jobs, supported by EPFO contribution reimbursements for new hires. In parallel, skilling programs aimed to train 20 lakh youth over five years, with 1,000 ITIs being upgraded to align with modern industry demands.
The government also launched a large-scale internship program targeting 1 crore youth in top 500 companies, offering participants a monthly allowance and financial assistance through CSR initiatives.
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was allocated Rs 86,000 Crore up from Rs 60,000 Crore in FY24.
Capex of Rs 11.11 Lakh Crore for Infrastructure
Infrastructure investments saw record allocation of Rs 11,11,111 crore, equivalent to 3.4 per cent of GDP. The fourth phase of the Pradhan Mantri Gram Sadak Yojana (PMGSY) sought to enhance rural connectivity by providing all-weather roads to 25,000 habitations. Urban and industrial growth received a boost with the development of 12 industrial parks under the National Industrial Corridor Development Programme, reinforcing India’s manufacturing and export potential.
Angel Tax abolition to capital gains tax reforms
In a move welcomed by startups and investors, the controversial angel tax was abolished for all investor classes, addressing valuation disputes and simplifying funding. Capital gains tax reforms introduced a uniform rate of 20 per cent for short-term gains and 12.5 per cent for long-term gains, alongside an increased exemption limit of Rs 1.25 lakh annually. Custom duties were reduced for sectors like mobile manufacturing, solar energy, and marine exports, with shrimp feed duties lowered to 5 per cent and critical minerals for solar cells fully exempted.
Additionally, corporate tax on foreign companies reduced from 40 per cent to 35 per cent.
Boosting Agriculture and Rural Development
The agricultural sector received a significant push in 2024, also being one of the four priorities of this budget, with measures aimed at reducing wastage, improving productivity, and promoting sustainable farming. The government focused on empowering Farmer Producer Organizations (FPOs), cooperatives, and startups to streamline the vegetable supply chain, supported by enhanced cold storage infrastructure. Simultaneously, 109 high-yielding, climate-resilient crop varieties were released, promising better adaptability for farmers in changing climatic conditions.
A major initiative to transition one crore farmers into natural farming practices underscored the government’s commitment to sustainability. Supporting this shift, 10,000 bio-input resource centers were established to facilitate certifications and branding. Additionally, digital advancements in agriculture included crop surveys across 400 districts and plans to integrate Kisan Credit Cards with Jan Samarth platforms.
Social and Welfare Programmes
A Rs 3 lakh crore allocation targeted schemes for women and girls, including working women’s hostels and creches to boost workforce participation. For tribal communities, the Pradhan Mantri Janjatiya Unnat Gram Abhiyan aimed to transform 63,000 villages, benefiting 5 crore tribal citizens.
NextGen Reforms: Land record digitisation to Climate Finance
Key structural reforms set the stage for a modern, transparent economy. The Bhu-Aadhaar initiative aimed to digitize land records, ensuring secure property rights. Climate finance received a boost with a taxonomy to attract investments for climate adaptation projects, while FDI policies were simplified to encourage foreign investments and promote the Indian Rupee in global trade.
Additionally, NPS Vatsalya was launched which is a pension scheme for minors.
Innovation and Research Investments
A Rs 1,000 crore venture capital fund supported private space enterprises, while the National Research Fund was operationalized to encourage basic research and prototype development. To reduce dependency on imports, the Critical Minerals Mission focused on domestic production and recycling of essential resources.
Urban Development and Housing Initiatives
Urban housing and development received a boost through the revamped PM Awas Yojana Urban 2.0, which allocated Rs 10 lakh crore to address the housing needs of 1 crore families. Weekly street food hubs and transit-oriented developments in 14 major cities were part of the government’s strategy to enhance urban living and economic activity.
Energy and Climate Action
The government’s green energy push featured a Pumped Storage Policy, with NTPC and BHEL collaborating on an 800 MW plant. The focus on clean energy extended to the development of Bharat Small Modular Reactors for nuclear energy. Energy audits conducted in 60 MSME clusters paved the way for cleaner energy adoption, with plans to expand this initiative further.
Strengthening Tourism and Heritage
Tourism saw a renewed focus with the development of iconic corridors, including Vishnupad and Mahabodhi Temple Corridors, modeled after the successful Kashi Vishwanath initiative. The budget also announced plans to revive Nalanda University and promote Odisha’s cultural heritage highlighted the government’s commitment to preserving India’s historical and natural assets.
