How many times did Nirmala Sitharaman present the budget?

Finance Minister Nirmala Sitharaman will set a record by presenting the seventh budget in a row -- six annual Budgets and one interim.

Who is the father of Indian budget?

The first budget of India was submitted on 18 February 1860 by James Wilson. P C Mahalanobis is known as the father of Indian budget.

Who presented longest budget in India?

Sitharaman holds the record for the longest budget speech when her presentation on February 1, 2020, lasted two hours and 40 minutes.

Who present the first Indian budget?

Ramasamy Chetty Kandasamy Shanmukham Chetty served as the first Finance Minister of Independent India. The country's first budget was tabled on November 26, 1947. The Planning Commission was introduced during his tenure.

Who controls the budget in India?

The Union Budget of India, also referred to as the Annual Financial Statement in Article 112 of the Constitution of India, is the annual budget of the Republic of India set by Ministry of Finance for the following financial year, with the revenues to be gathered by Department of Revenue.

Union Budget 2024, Key Highlights and Expectations

Table of Contents

Finance Minister Nirmala Sitharaman presented her seventh consecutive Union Budget on July 23, 2024. This Budget is seen as the action plan for the Modi 3.0 government, outlining a roadmap for India’s development over the next five years. With a focus on employment, tax relief, and various sectoral improvements, the Budget 2024-25 is eagerly anticipated by all.

Union Budget 2024

Finance Minister Nirmala Sitharaman presented the Union Budget 2024 on July 23, focusing on employment, tax relief, and sustainable agriculture. Key initiatives include increasing tax exemption limits for the middle class, providing one month’s wage to new workers, and promoting natural farming for one crore farmers. The Budget prioritizes sectors like manufacturing, urban development, and energy security, aiming to boost India’s economic growth and resilience.

Category	Details
Date Presented	July 23, 2024
Finance Minister	Nirmala Sitharaman
Key Focus Areas	Employment, Tax Relief, Agriculture, Manufacturing
Middle-Class Relief	Increased tax exemption limits under both tax regimes
Employment Initiative	One month’s wage for new workforce entrants
Agriculture	Natural farming for 1 crore farmers over 2 years
Priorities	Agriculture, Employment, Human Resources, Manufacturing, Urban Development, Energy Security, Infrastructure, Innovation
Economic Outlook	Continued growth, stable inflation

Union Budget 2024: How Tax Rates for Individuals Changed?

Tax rates for individuals in India have evolved significantly from a peak of 97% in the 1980s to 42% as of Budget 2024. Major reforms in the early 1990s reduced the highest rate to 40%, and subsequent adjustments brought it down to 30% for most taxpayers. The latest changes in Budget 2024 include a 42% top rate with a 12% surcharge for high incomes, reflecting a shift towards increased revenue generation while aiming to balance economic growth.

Key Highlights of Union Budget 2024

The Union Budget is a critical component of the UPSC syllabus, especially for the Prelims and Mains stages. Here are the key highlights and important pointers from the Union Budget 2024, presented by Union Finance Minister Nirmala Sitharaman. This budget, under the Modi 3.0 government, focuses on the poor (‘Garib’), youth (‘Yuva’), farmers (‘Annadata’), and women (‘Nari’). The Budget emphasizes nine priorities: productivity & resilience in agriculture, employment & skilling, inclusive human resource development & social justice, manufacturing & services, urban development, energy security, infrastructure, innovation, R&D, and next-generation reforms.

Agriculture

Allocation: ₹1.52 Lakh Crore for agriculture and allied sectors.
New Varieties: 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops.
Natural Farming: 1 crore farmers to be initiated into natural farming; 10,000 Bioinput research centers to be established.
Digital Public Infrastructure (DPI): DPI for Agriculture to be implemented in three years with Kisan Credit cards in five states.

Employment and Skilling

Allocation: ₹1.48 lakh crore for education, employment, and skill.
Schemes: Five schemes for employment benefiting 4.1 crore youth with an outlay of ₹2 lakh crores.
- Scheme A: Direct benefit transfer of one month’s salary for first-time job seekers.
- Scheme B: Job creation in manufacturing.
- Scheme C: Additional employment in all sectors.
Education Loans: ₹10 lakh loans for higher education with annual interest subvention of 3%.
Women: Measures for higher participation in the workforce, including hostels, creche facilities, and market access for SHG enterprises.

Human Resource Development and Social Justice

Purvodaya: Development of eastern India, including Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.
Projects: Amritsar Kolkata Industrial Corridor, expressways, and infrastructure projects.

Manufacturing and Services

MSMEs: Financing, regulatory changes, technology support, credit guarantee schemes, and self-financing guarantee fund.
Internship: 1 crore youth internships in top companies over 5 years.
Industrial Parks: Development of investment-ready “plug and play” industrial parks in 100 cities.

Urban Development

PM-AWAS Yojana Urban 2.0: Investment of ₹10 lakh crore for 1 crore urban poor and middle-class families.
Water Supply and Sanitation: Projects in collaboration with states and multilateral development banks.

Energy Security

Nuclear Energy: Partnership with the private sector for Bharat Small Reactors and Modular Reactors.
Solar Power: PM Surya Ghar Muft Bijli Yojana for rooftop solar plants.
Pumped Storage Policy: Promotion of pumped storage projects for electricity storage.
Advanced Ultra Super Critical Thermal Power Plants: Development of indigenous technology for 800 MW plants.

Infrastructure

Allocation: ₹11.11 lakh crore for capital expenditure.
Pradhan Mantri Gram Sadak Yojana (PMGSY): Phase IV for rural connectivity.
Irrigation and Flood Control: Financial support for projects like Kosi-Mechi intra-state link.

Innovation and R&D

Anusandhan National Research Fund: Operationalization for basic research and prototype development.
Space Economy: Venture capital fund of ₹1000 crore to expand the space economy.

Next Generation Reforms

Land Reforms: ULPIN for all lands, digitization of cadastral maps, establishment of land registry.
Labour Reforms: Integration of e-shram portal with other portals for ease of compliance.
Climate Finance: Development of a taxonomy to enhance capital availability for climate adaptation.

Tax-Related Proposals

Income Tax Act, 1961: Comprehensive review for simplification and reduction of disputes.
Angel Tax Abolished: Boost for startups by removing the tax on investors.
Security Transactions Tax: Increased to 0.02% for futures and 0.1% for options.

Basics of the Union Budget

The Union Budget, technically called the Annual Financial Statement under Article 112 of the Constitution, outlines the government’s financial health. It includes estimates of revenue and expenditure for the coming financial year and details of the government’s borrowing requirements.

Important Budget Documents:

Annual Financial Statement (AFS)
Demands for Grants (DG)
Finance Bill

Key Terms:

Revenue Budget: Consists of revenue receipts (tax and non-tax revenues) and revenue expenditures.
Capital Budget: Includes capital receipts (loans) and capital expenditures (acquisition of assets).
Fiscal Deficit: Difference between total revenue receipts plus non-debt capital receipts and total expenditure.
Demands for Grants: Estimates of expenditure required to be voted by the Lok Sabha.
Money Bill: Deals with taxes, borrowing, and expenditure from the Consolidated Fund of India.
Finance Bill: Details the imposition, abolition, and regulation of taxes proposed in the Budget.

Union Budget 2024: Special Focus on Bihar and Andhra Pradesh

In the Union Budget 2024, Finance Minister Nirmala Sitharaman emphasized significant development initiatives for Bihar and Andhra Pradesh. This targeted attention reflects the strategic importance of the Telugu Desam Party (TDP) and Janata Dal (United) (JD(U)) as key allies in the NDA coalition following the recent Lok Sabha elections.

Key Developments for Bihar:

Financial Assistance: The Union government will facilitate financial support for Bihar through aid from multilateral development agencies.
Purvodaya Plan: A comprehensive development plan, named Purvodaya, will be implemented for Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.
Infrastructure Investments: The budget proposes Rs 26,000 crore for various road projects in Bihar. Additionally, new airports, medical colleges, and sports infrastructure will be established.
Tourism Development: Major tourism projects include the development of corridors around the Vishnupad temple in Gaya and the Mahabodhi temple in Bodhgaya. Nalanda will be developed as a tourism hub, and Rajgir will be enhanced as a significant tourism site for Hindus, Buddhists, and Jains.

These announcements come as Bihar prepares for state elections next year, with the BJP hoping these initiatives will boost the BJP-JDU alliance’s standing.

Key Developments for Andhra Pradesh:

Amravati Development: Rs 15,000 crore will be allocated for the development of Amravati, the capital of Andhra Pradesh, with funding from multilateral agencies routed through the Centre.
Polavaram Project: The budget reaffirms commitment to completing and financing the Polavaram irrigation project.
Industrial and Regional Development: Funds will be provided for essential infrastructure, including water, power, railways, and roads. Backward regions such as Rayalaseema and North Coastal Andhra Pradesh will receive grants as stipulated in the AP Reorganisation Act.

Pre-Budget Activities and Market Reactions

Cabinet Approval

Earlier in the day, the Cabinet, chaired by Prime Minister Narendra Modi, approved the Union Budget 2024. This approval is a crucial step before the Finance Minister presents the Budget in Parliament.

Market Movements

Ahead of the Budget presentation, the Sensex opened 220 points higher at 80,740, while Nifty was up by 59 points. However, the markets experienced some jitters, with Sensex and Nifty trading in negative territory just before the Budget announcement.

Impact of Budget 2024

In the 2024 Union Budget, Finance Minister Nirmala Sitharaman announced several changes to customs duties and proposed adjustments to support various sectors. Here’s a summary of the key points:

Items Becoming Cheaper

Category	Items	Details
Healthcare	Cancer Drugs	Reduction in customs duty aims to make life-saving medications more affordable.
Healthcare	Medical X-ray Machines	Lowering duties could enhance access to diagnostic equipment in healthcare facilities.
Technology	Mobile Phones and Chargers	Duty cuts expected to reduce retail prices, benefiting consumers and potentially boosting demand.
Energy	Equipment Using Solar Cells and Panels	Encourages the adoption of renewable energy by reducing the cost of solar technology.
Aquaculture	Fish and Shrimp Feed	Decrease in costs could benefit the industry by making feed more affordable.
Consumer Goods	Leather Goods	Lower customs duties may reduce production costs and retail prices for leather products.
Consumer Goods	Footwear	Reduction could benefit both consumers and the domestic footwear industry.
Manufacturing	Textiles	Lower duties could reduce costs for manufacturers and consumers.
Jewelry	Gold, Silver, Platinum Making Charges	Decrease in making charges could lower the overall cost of jewelry.

Items Becoming Costlier

Category	Items	Details
Agriculture/Industry	Ammonium Nitrate	Increase in duty may impact costs for agriculture and industries using ammonium nitrate.
Advertising/Marketing	PVC Flex Banners	Higher duties might increase costs for businesses relying on PVC banners for marketing.
Telecommunications	Imported Telecom Equipment	Increased costs could affect telecommunications infrastructure and consumer prices.

Major Announcements and Initiatives

First-Time Worker Scheme

To encourage employment, the government will provide one month’s wage to all first-time workers in all sectors. This initiative aims to support new entrants into the workforce and boost job creation across the country.

Natural Farming Initiative

The government plans to introduce one crore farmers to natural farming over the next two years. This initiative aims to promote sustainable agricultural practices and reduce reliance on chemical inputs.

Focus on Key Sectors

The Budget prioritizes several key sectors, including:

Agriculture and natural farming
Employment and skilling
Human resources and social justice
Manufacturing and services
Urban development
Energy security
Infrastructure
Innovation, research, and development
Next-generation reforms

Prime Minister’s Statement

Prime Minister Narendra Modi expressed confidence in the Budget, stating that it would present a strong action plan for India’s development. He emphasized that the government’s guarantees would reach the common man and highlighted the significance of the Modi 3.0 government’s first Budget in its third term.

Union Budget 2024 UPSC

Budget 2024, presented by Finance Minister Nirmala Sitharaman, focuses on employment, tax relief, and various sectoral improvements. With initiatives aimed at boosting job creation, supporting the middle class, and promoting sustainable agricultural practices, the Budget outlines a comprehensive roadmap for India’s development over the next five years. Stay tuned for further updates and detailed analysis of the Union Budget 2024.