Union Budget 2024-25: Live Updates | Download PDF

PWOnlyIAS February 22, 2024 10:26 1421 0

Union Budget 2024-25: Union Finance Minister Nirmal Sitharaman will present the budget for Financial Year 2024-25 on February 1.

Union Budget 2024-25: Live Updates | Download PDF

Context

Recently, Union Finance Minister Nirmal Sitharaman presented the budget for Financial Year 2024-25 on February 1.

Download Budget 2024-25 Summary

Union Budget 2024-25: Highlights

The budget for 2024-25 was the final budget of the NDA government’s second term.
The budget this year was interim, as the government will be facing a general election in April-May this year. The full budget will be presented in July by the new government.

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Interim Budget

An interim budget is a type of temporary financial plan for the government, which will replace a full budget in case Parliament is short on time or general elections are approaching.
The interim budget ensures that the government keeps essential services running and covers expenditures for the first few months of the fiscal year.

Key Highlights of the Union Budget (Interim) 2024

Interim Budget: The finance minister presented an interim budget and said that the full-length budget in July will present a detailed roadmap to make India a developed country.
Indian Economic Growth: The FM has said that the Indian economy is likely to grow at over 7 per cent in the coming years and will become the third-largest economy in the world in the next three years, with an estimated GDP of $5 trillion.
Next-generational Reforms: The government will follow the principle of ‘reform, perform, and transform’ to take up next-generation reforms, and build consensus with the states and other stakeholders for effective implementation.
Revenue Receipts: The FM has announced that the revenue receipts for the current fiscal at ₹30.03 lakh crore higher than the Budget Estimate.
Income Tax Processing Time: The government has been successful in reducing the processing time of tax returns from 93 days in FY14 to 10 days.
Tax Collection: The number of tax filers increased by 2.4 times and direct tax collection has trebled since 2014. The tax receipts are projected at ₹26.02 lakh crore.

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Union Budget 2024

Performance of Key Schemes

PM Awas Yojana (Gramin): The scheme has achieved the target of close to 3 crore houses and now is aiming for 2 crore more houses in the next five years.
Lakhpati Didi Scheme: The promotion of SHGs has helped transform the rural socio-economic landscape, helping nearly one crore women to become ‘Lakhpati Didi’.

- Buoyed by the success, the government has decided to enhance the target for ‘Lakhpati Didi’ from 2 crore to 3 crore.

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Pradhan Mantri Matsya Sampada Yojana: The Pradhan Mantri Matsya Sampada Yojana has enabled doubling seafood exports from 2013-14. This scheme will further be boosted to generate 55 lakh jobs and boost exports to Rs 1 lakh crore.
PM Kisan SAMPADA Yojana: This agriculture value addition scheme has benefited 38 lakh farmers and assisted 2.4 lakh self-help groups (SHGs).

Key Announcements in Budget 2024

Sectors	Proposals
Taxation	Income Tax Slabs: The finance minister has not proposed any changes in income tax rates for individuals and corporates, as well as customs duty. Outstanding Tax Demand: The government will withdraw outstanding direct tax demands up to ₹25,000 for the period up to financial year 2009-10 and up to ₹10,000 for financial years 2010-11 to 2014-15. Tax Benefits for Start-ups: The government will extend tax benefits for start-ups for another year, helping the office real estate to rejuvenate.
Deficit and Expenditure	Capital Expenditure: The FM has hiked capital expenditure to ₹11.11 lakh crore for 2024-25 in order to sustain economic growth. Fiscal Deficit: The fiscal deficit has been trimmed this financial year to 5.8 per cent, from the budgeted 5.9 per cent of GDP. The government has plans to reduce the fiscal deficit to below 4.5% of the GDP in 2025-26 (FY26). Capex outlay: The government is set to increase the allocation by 11.1% to ₹11,11,111 lakh Cr, accounting for 3.4 % of GDP. Real estate development across assets will witness a boom because a major part of this allocation will be utilised for various infra upgrades and new projects.
Fiscal Borrowings	Government Bonds: The government is likely to borrow ₹14.13 trillion ($170 billion) in the fiscal year starting April 1, which is lower than the estimated ₹15.2 trillion. Lower issuance of bonds is expected to increase the demand. This could lead to fall in bond yields.
Trade and Investments	Investments: Indian government is encouraging sustained foreign investment by negotiating bilateral investment treaties with foreign partners.
Infrastructure	Housing for the middle class: The Government is planning to launch a scheme to help deserving sections of the middle class, living in rented houses or slums, or chawls and unauthorized colonies, to build their own house. Transit Oriented Development in Urban Areas: This will help housing demand to increase in cities and lead to rise in residential prices, in and around tier 2 and tier 3 cities. Medical Colleges: The government will set up new medical colleges by utilising the existing hospital infrastructure under various departments. Railway Corridors: The government has announced the setting up of three major economic railway corridors: energy, mineral and cement corridors, port connectivity corridors, and high traffic density corridors. These corridors will not just reduce time and cost of logistics, it will also provide safety and higher travel speed for passengers. Upgradation of Passenger Railway: The government will upgrade rail bogies to Vande Bharat coaches, thus creating job opportunities while reducing travel time as well as increasing tourism across the country.
Tourism	Iconic Tourists Centres: The government is planning to develop iconic tourist centres to help the hospitality sector, including hotels and restaurants across categories. The government will provide states with long-term interest-free loans for financing these developments. As part of the plan to boost domestic tourism industry, port connectivity, tourism infrastructure, and amenities will be taken up on islands, including Lakshadweep.
Science and Technology	Research and Development in Sunrise Sectors: For carrying out Research and Development in Sunrise sectors, the government will establish a corpus of Rs 1 lakh crore with 50-year interest free loan. The corpus can be used to provide long term financing and re-financing with long tenures at low or nil interest rates. Deep Tech technology: The government will soon be launching a scheme for strengthening deep tech technology for defence purposes.
Renewable Energy	Renewable Energy: Through the PM Suryodaya Yojana (roof-top solarisation scheme), 1 crore households can obtain up to 300 units of free electricity every month. Off-shore Wind Energy: The government has announced Viability Gap Funding for harnessing offshore wind energy potential for the initial capacity of one giga-watt. Coal Gasification: To help reduce the imports of natural gas, methanol, and ammonia, the government will develop gasification and liquefaction facilities with a capacity of 100 MT by 2030. Blending of compressed biogas (CBG): The government is set to mandate the phased blending of compressed biogas (CBG) in compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes. Biomass Aggregator: Subsidy will be provided for procurement of biomass aggregation machinery to support collection.
Healthcare	Expanding Ayushman Bharat: The government will expand Ayushman Bharat scheme for Anganwadi and ASHA workers. Comprehensive Scheme: A comprehensive scheme will be brought in to cover all maternal and child healthcare schemes.
Electric Vehicles	EV Infrastructure: The government seeks to strengthen the EV ecosystem by supporting manufacturing and charging infrastructure. Electric Mobility: There will be increased focus on adopting e-buses for public transport networks through payment security mechanisms.
Industries	MSME Promotion: The government will make MSMEs globally competent by providing them training, both upskilling and reskilling. Agriculture and Food Processing: The government will promote private and public investment in post-harvest activities, including storage, processing and branding. There will be expansion in usage of nano Diammonium phosphate (DAP) fertilisers on crops. Oil seeds sector will be given priority, with focus on research for high-yielding varieties, procurement, value addition and crop insurance.

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What is the Union Budget?

The Union budget, also known as Annual Financial Statement, is the annual budget of the Government of India set by Ministry of Finance.
The body responsible for presenting the budget is the budget division of the Department of economic affairs (DEA) in the finance ministry.
The budget comprises two parts: the Annual Financial Statement and the Demand for Grants.
- The Annual Financial Statement outlines government revenue while Demand for Grants highlights estimated expenditures, and seeks funds from Consolidated Fund of India.
Union Budget Components: The Union budget comprises of two components:
- Revenue Budget: It consists of the government’s financial statements regarding revenue receipts and revenue expenses for the upcoming fiscal year.
  - Revenue Receipts: It estimates the amount of revenue the government expects to receive from the citizens in the upcoming financial year.
  - Revenue Expenditure: It is the expenses the government has to bear for the daily functioning of the economy and to provide citizens with the essential public services, facilities and amenities.

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- Capital Budget: It is made up of government’s capital receipts and capital expenditures during a financial year.
  - Capital Receipts: Capital receipts refer to the loans raised by the government from various sources to fund long-term developmental needs.
  - Capital Expenditure: It is the expenses the government has to bear to create long-term assets and provide welfare facilities to the citizens.
Key Features of a Budget

- Revenue and Expenditure: A full-year budget will provide details on the government’s estimated revenue sources, including taxes, duties, and other income streams, along with planned expenditures spanning across sectors such as education, healthcare, infrastructure, and defence.
- Policy and Plans: A budget will usually introduce new policies, schemes, and reforms that help in economic growth, social development, and overall progress.
- Parliamentary Approval: A budget needs to undergo rigorous examination, discussion, and approval by both houses of Parliament. Before being adopted.

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Constitutional Provision for Union Budget

Articles	Provisions
Article 112	Under Article 112 of the constitution, the President shall cause to lay an annual financial statement of estimated receipts and expenditure before both Houses of Parliament.
Article 113	Without prior approval of the President, no demand for grants can be presented in the Lok Sabha.
Article 114	No money shall be withdrawn from the Consolidated Fund of India except authorisation by the Parliament.
Article 266	All revenue receipts generated by the Government of India shall be credited to the Consolidated Fund of India. Revenue raised through provident fund, Postal insurance, etc, shall be credited to the Public Account of India.
Article 267	A Contingency Fund of India has to be set up by the Parliament to meet unexpected or unforeseen expenditures.

Date of Presentation of Union Budget 2024-25

As per convention, the Union Budget used to be presented at 5 pm on the last working day of February until 1999, when then finance minister Yashwant Sinha changed the timing to 11 am.
This was a colonial tradition and the logic behind this tradition was that it gave British residents the time of 11:30 am.
Until 2016, the budget was presented on the last working day of February. Currently, it is presented on the first working day of February.
- It was argued that changing the date would allow government more time to prepare for new policies and changes for the coming financial year.

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History and Evolution of Budget in India

Pre-independence: The first-ever budget in India was presented on April 7, 1860, by Scottish economist James Wilson from the East India Company.
- It was in this budget that ‘income tax’ was introduced for the first time.
Post-independence: Independent India’s first budget was presented on November 26, 1947, by R K Shanmukham Chetty, the finance minister at the time.
- The first budget was supposed to last for seven and a half months, following which the next budget was to be implemented from April 1, 1948.
- John Mathai, who became the finance minister after the resignation of Mr Chetty, presented the Union Budgets of 1949-50 and 1950-51. This was the first time a budget was prepared for a United India, including all princely states.
- Until 2017, the Railway Budget of the country was separately introduced in the parliament. Currently, it has been merged with the Union Budget.

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Process of Union Budget

Announcement of Date: The government will announce the budget presentation day beforehand. It will also announce whether it will be a full-length budget or interim budget.
The Halwa Ceremony: The Halwa ceremony marks the beginning of budget documents printing. It usually takes place five days before the presentation of the budget.
Printing the Budget Document: The officials and staff of the Finance Ministry, involved in budget printing, will have to follow a lock-in period.
During the lock-in period, they are not allowed to have contact with the outside world.
Meeting the President: The finance minister has to take the President’s approval before presenting the budget in the Parliament.
The Cabinet Meeting: A Union Cabinet meeting is held at 10a.m on the budget day. After getting the approval from the cabinet, the Finance Minister presents the Union Budget in Parliament of India.
The Finance Minister’s Speech: The Union Finance Minister will give a speech in the Lok Sabha to provide the direction in which the government wishes to move in the coming financial year, the growth targets and the major thrust areas.
- The speech also contains a financial statement that gives estimated receipts and expenditures of the central government for the forthcoming fiscal year and a review of the current fiscal year.
Discussion on the Budget: After the speech by the finance minister, a general discussion is held to discuss the budget document.
Departmental Scrutiny: After general discussions, the departmental standing committee of the Parliament examines the demands for grants.

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Voting on Demand for Grants: Every member of Lok Sabha has to vote on each demand for grants. Voting is allowed on only demand for grants, and no voting is allowed on the expenditure charged on the consolidated fund of India.
Passing an Appropriation Bill: Since no money can be withdrawn from the Consolidated Fund of India without an appropriation made by law, a bill in this regard is introduced to provide for the appropriation out of the Consolidated Fund of India.
Passing of Finance Bill: Finally, a Finance Bill is introduced in the house to give effect to the financial proposals of the Government of India for the following year.

Events Associated With Union Budget

Halwa Ceremony

The Halwa ceremony is a traditional pre-budget ritual followed by the Finance Ministry when officials involved in budget preparation will be ‘locked-in’ to maintain confidentiality until the document is tabled in the Lok Sabha.
The ceremony is traditionally held five days before the union budget is presented in the Parliament. It involves the preparation and serving of “halwa”, a traditional Indian sweet, to officials and staff involved in the budget’s preparation.
Apart from marking the beginning of the “lock-in” period preceding the budget presentation, it also serves as a gesture of appreciation for the individuals involved.

Lock-in Period

After the Halwa ceremony, the lock-in period starts for the finance ministry staff in the Budget Press located in the ministry’s headquarters in the North Block.
The lock-in period is followed to maintain the secrecy of the Budget. Since the budget has been digitised, the lock-in period has reduced to about five days from the earlier practice of up to two weeks.

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Difference Between Full Budget and Interim Budget

Full Budget	Interim Budget
A full-length budget is a comprehensive financial plan that covers all aspects of government spending, revenue generation, and policy reforms for an entire fiscal year.	An interim budget is a temporary plan that authorises the government to withdraw money from the Consolidated Fund of India to meet expenditure for the April-July period.
The full budget is presented by the government that is going to continue into the next fiscal year.	An interim budget is presented by the outgoing government before general elections or a new government is set to come to power.
There is scope for major policy changes and new schemes.	It does not introduce major policy changes or new schemes.
A full union budget is presented annually.	An interim budget is presented during election year.
It involves detailed discussion on schemes, policies and allocations.	An interim budget is devoid of the usual scrutiny and debate in Parliament.
A full-length budget provides a long-term vision for economic growth, capital investment, and social welfare initiatives.	An interim budget ensures continuity and prevents financial disruption during political transitions.

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Union Budget Facts: Historical Historical Insights

The budget of 1973-74 is dubbed as the “Black Budget” as the nation had a deficit of Rs 550cr.
The budget of 1997-98 was described as the “Dream Budget” because it provided the road map for economic reforms in India including dropping of income tax rates, removal of the surcharge on corporate taxes, and reduced corporate tax rates.
The budget of 2000-2001 is touted as the ‘millennium budget’ for transforming the Indian economy into a tech-hub.
The highest number of budgets have been presented by Morarji Desai. He presented the budget ten times under various governments.
Only Jawaharlal Nehru, Indira Gandhi and Rajiv Gandhi have presented the Union budget as Prime Ministers.
Dr Manmohan Singh gave the longest budget speech (in terms of number of words) in 1991 during his tenure as the finance minister.
Nirmala Sitharaman gave the longest budget speech, in terms of time, for 2.42 hours while presenting the Union Budget in 2020.
Nirmala Sitharaman is the only woman full-time Finance Minister of India. Indira Gandhi was the Prime Minister, who held the Finance Minister portfolio.
Briefcases have been used to carry budget documents since the presentations of the very first budget in 1860. In 2019, Nirmala Sitharaman replaced the briefcase with a ‘bahi khata’.
The budget of 2021-22 was called a ‘paperless budget’ as the finance minister presented the Budget on a made-in-India tablet.

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The Railway Budget

Railway Budget was the annual financial statement of the Indian railways presented every year in the Parliament by the Minister of Railways.
The Railway budget was introduced for the first time in 1924-25 based on the recommendations of the Acworth Committee.
The first Railway Budget for independent India was presented by John Mathai on 20th November 1947. The highest number of railway budget was presented by Jagjivan Ram (7 times).
Mamata Banerjee became the only female minister to present the railway budget during her tenure as Railway Minister in 2000.
In 2016, the Indian government approved merger of the Rail and General budgets from 2017, ending a 92-year-old practice of a separate budget.
The last Railway Budget was presented by Suresh Prabhu on 25 February 2016. It was merged based on the recommendations of the Bibek Debroy committee.

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Frequently Asked Questions

Until 2016, the budget was presented on the last working day of February. Currently, it is presented on the first working day of February.

The Union budget, also known as Annual Financial Statement, is the annual budget of the Government of India set by Ministry of Finance.

The body responsible for presenting the budget is the budget division of the Department of economic affairs (DEA) in the finance ministry.

An interim budget is a type of temporary financial plan for the government, which will replace a full budget in case Parliament is short on time or general elections are approaching.

The Halwa ceremony is a traditional pre-budget ritual followed by the Finance Ministry when officials involved in budget preparation will be ‘locked-in’ to maintain confidentiality until the document is tabled in the Lok Sabha.

Independent India’s first budget was presented on November 26, 1947, by R K Shanmukham Chetty, the finance minister at the time.

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Union Budget 2024-25: Live Updates | Download PDF

Context

Union Budget 2024-25: Highlights

Interim Budget

What is the Union Budget?

Key Features of a Budget

Constitutional Provision for Union Budget

Articles

Provisions

Date of Presentation of Union Budget 2024-25

History and Evolution of Budget in India

Process of Union Budget

Events Associated With Union Budget

Halwa Ceremony

Lock-in Period

Difference Between Full Budget and Interim Budget

Full Budget

Interim Budget

Union Budget Facts: Historical Historical Insights

The Railway Budget

Frequently Asked Questions

When will the Union Budget typically Presented?

What is the Union Budget?

Which Body is responsible for presenting the Union budget?

What is the Interim Budget?

What is the Halwa Ceremony?

Who presented Independent India’s first annual budget?

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