Union Budget 2024 LIVE: FM reacts to opposition's criticism; asserts 'no discrimination' in State fund allocation

Finance Minister Nirmala Sitharaman on Tuesday dismissed the Opposition’s criticism that the budget has accorded special treatment to states run by supporting parties, saying that those whose alliance got less than 230 seats have no right to question it as the Centre has provided funds to all states.

On the issue of Rs 60,000 crore projects announced for Bihar and pledge to get multilateral assistance for the state and Andhra Pradesh, she said, Rs 1.5 lakh crore assistance has been promised for all states in the budget.

“The Indi alliance (Indian National Developmental Inclusive Alliance) together could not cross 230 seats while BJP alone has reached 240 and with the pre-election alliance, we have formed government comfortably under the leadership of Prime Minister Narendra Modi. This is historic,” she said in a customary post budget media briefing.

Prime Minister Modi in his third term has made several announcements for growth and development, including provision of Rs 1.50 lakh crore to states without interest for 50 years, she said, adding, this is over and above the Finance Commission’s recommendation.

“We get proposals for all states and try to finance their projects following due process,” she said.

Asked whether West Bengal is not mentioned in the Budget, she said, those who are claiming this, should read the speech carefully as the name features in paragraph giving details of Purvodaya scheme.

“If the name of the state is not mentioned in the Budget speech that does not mean that it is not covered,” she said.

“States in the Eastern part of the country are rich in endowments and have strong cultural traditions. We will formulate a plan, Purvodaya, for the all-round development of the eastern region of the country covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh,” she said in her Budget speech.

HR and Ed-tech industry experts on Tuesday said budget proposals on skilling, internship and job creation will help address the need for a skilled workforce and boost employment generation for youth.

Experts termed the Budget for 2024-25 presented by Finance Minister Nirmala Sitharaman as forward-thinking which aligns with the vision of a ‘Viksit Bharat’.

Direct Benefit Transfer (DBT) of up to Rs 15,000 is set to boost formal employment by making it more attractive for industries to hire new talent, they added.

Sitharaman in the budget announced an outlay of Rs 2 lakh crore for several schemes targeting 4.1 crore youth. The minister announced a provision of Rs 1.48 lakh crore for education, employment and skilling programmes.

TeamLease Degree Apprenticeship Chief Strategy Officer Sumit Kumar said with targeted outreach to 4.1 crore youth over five years, the initiative is poised to make a significant impact by seamlessly integrating education, skill development and employment.

“Up to Rs 15,000 in direct benefits will facilitate the transition of new entrants into the formal workforce, while additional incentives for job creation in the manufacturing sector and support for employers across various industries aim to promote widespread job creation and bolster economic activity. This forward-thinking approach aligns with the vision of a ‘Viksit Bharat’,” he stated.

For promoting women-led development, Finance Minister Nirmala Sitharaman on Tuesday said the budget carries an allocation of more than Rs 3 lakh crore for schemes benefitting women and girls.

Presenting the Union Budget for 2024-25 in the Lok Sabha, Sitharaman said this signals the government’s commitment in enhancing women’s role in economic development.

“For promoting women-led development, the budget carries an allocation of more than Rs 3 lakh crore for schemes benefitting women and girls,” she said.

Sitharaman said the government will set up working women hostels to promote their participation in the workforce.

One of the key highlights of the budget include establishment of working women hostels in partnership with industries and creches to support working mothers.

These initiatives are aimed at enhancing work-home balance for women, thus encouraging their greater participation in the workforce.

Additionally, the budget outlines the launch of women-specific skilling programmes designed to boost female workforce participation, which has increased to 24 per cent in Q2FY24.

The budget showed that the recent payroll data shows a notable rise in female workforce participation. As of May 2024, around 0.24 million new female members were added, marking a 12.1 per cent increase from the previous year.

The net addition of female members also rose by 17.2 per cent compared to the previous year, indicating a positive shift towards a more inclusive workforce.

The Ministry of Women and Child Development has seen a marginal increase of 2.5 per cent in its budget allocation for the fiscal year 2024-25.

The total budget for the ministry stands at Rs 26,092 crore, up from the previous year’s revised allocation of Rs 25,448 crore. (PTI)

To improve the outcomes of the insolvency proceedings, the government will set up an integrated technology platform for the stakeholders as well as increase the number of benches at the National Company Law Tribunal (NCLT).

Presenting the 2024-25 Budget, Finance Minister Nirmala Sitharaman on Tuesday said appropriate changes will be brought in the Insolvency and Bankruptcy Code (IBC).

The Code, which came into force in 2016 and so far has been amended six times, provides for a market-linked and time-bound resolution of stressed assets.

“An Integrated Technology Platform will be set up for improving the outcomes under the Insolvency and Bankruptcy Code (IBC) for achieving consistency, transparency, timely processing and better oversight for all stakeholders,” Sitharaman said.

She said IBC has resolved more than 1,000 companies resulting into a direct recovery of Rs 3.3 lakh crore to the creditors.

“In addition, 28,000 cases involving over Rs 10 lakh crore have been disposed of even prior to admission,” the minister said.

Besides, efforts are on to boost the tribunals to ensure a speedier resolution process under the insolvency regime. (PTI)

Professor Manish Gangwar, Indian School of Business, Executive Director-ISB Institute of Data Science said, “The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, stands out for its strong emphasis on job creation. Through a series of innovative schemes and forward-thinking policies, this budget aims to generate substantial employment opportunities and address the existing skill gap in the workforce.

A key highlight is the introduction of three “Employment Linked Incentive Schemes” designed to provide direct financial support to both employees and employers. These schemes include support for first-time employees, incentives for manufacturing sector jobs, and financial reimbursement for employers hiring additional staff.

Recognizing the critical role of skill development and practical training in enhancing employability and productivity, the budget emphasizes the upgradation of ITIs and internships in top companies. Over the next five years, 1,000 Industrial Training Institutes (ITIs) will be upgraded, focusing on improving outcomes and quality. Additionally, 1 crore youth will gain valuable on-the-job experience through internships in top companies. The budget also plans to develop investment-ready “plug and play” industrial parks in or near 100 cities to stimulate job creation and a conducive environment for businesses to set up operations and generate jobs.

The Union Budget 2024 is a forward-looking plan. By introducing targeted employment schemes, enhancing skill development programs, and developing industrial parks, the government aims to not only provide immediate employment opportunities but also focus on a skilled and resilient workforce for the future to drive India’s long-term economic growth.”

Generally, the common-man infer a lot from watching the last twenty-odd minutes of a budget speech or analysing the behaviour of the stock markets. So, if the stock markets trade up by a percent, then it is anticipated as a positive budget and vice-versa. This budget announcement, the seventh one for Nirmala Sitharaman could go down in history as her first one where the markets did not rally as exuberantly as the other budget speeches.

The overall budget allocation for the education sector has gone down by over Rs 9,000 crore. The Centre has allocated over Rs 1.20 lakh crore to the Ministry of Education for 2024-25 as against revised estimate of over Rs 1.29 lakh crore in the previous financial year.

The Indian stock market slumped over 1,000 points in the afternoon session as Finance Minister Nirmala Sitharaman unveiled the Union Budget 2024. While the Sensex and Nifty both recovered since then, it is reported that investor wealth fell by Rs 8.85 lakh crore. But what led to this drastic tumble?

Over Rs 200 crore have been earmarked for expenditure on “examination and selection” of the civil servants by the Union Public Service Commission (UPSC) in the 2024-25 Budget announced on Tuesday.

The Commission conducts the civil services examination annually in three stages – preliminary, main and interview – to select officers of Indian Administrative Service (IAS), Indian Foreign Service (IFS) and Indian Police Service (IPS), among others.

The government on Tuesday brought back interest subsidy under the Pradhan Mantri Awas Yojana (Urban) 2.0 and set aside Rs 4,000 crore for Credit Linked Subsidy Scheme (CLSS).

In the 2024-25 Union Budget, PMAY-U has been allocated Rs 30,170 crore, an increase of 20.19 per cent from the 2023-2024 budgetary allocation.

According to the Union Housing and Urban Affairs Ministry, the interest subsidy scheme can soon be availed by the economically weaker section (EWS), lower income group (LIG) and middle income group.

Nearly two years ago, the government did not extend the time period of CLSS under PMAY, which provided subsidised home loans based on income.

At present, the scheme is being implemented through three verticals — Beneficiary Led Construction/Enhancement, Affordable Housing in Partnership and In-situ Slum Redevelopment.

Presenting the Budget 2024-25 in the Lok Sabha on Tuesday, Finance Minister Nirmala Sitharaman said that three crore additional houses under the PM Awas Yojana in rural and urban areas will be constructed, for which the necessary allocations are being made.

According to budgetary document, Rs 3,000 crore has been allocated for EWS and LIG groups to construct houses under CLSS in urban areas while the middle income group will be provided Rs 1,000 crore. (PTI)

Prof Sanket Goel, Dean, Research and Innovation (Institute-wide) and Professor, BITS Pilani Hyderabad Campus says, “The budget is beaming with opportunities for both academia and industry which will further cultivate talent. The government has iterated its focus on developing India’s semiconductor manufacturing muscle by a substantial budget increase to ₹ 6,903 crore, which is more than twice than that from the preceding FY. There is immense potential for scientific progress in space technology in India which the government has rightly recognised by allocating ₹ 1,000 crore for space research. Also, the removal of angel tax for start-ups will encourage sustainable development and new business opportunities.

A 15% tariff cut on electronics will boost manufacturing and make technology more accessible, while investment in skills development, including internships for 1 million students and the establishment of 12 industrial parks, will provide vital training and job opportunities and prepare youth for future challenges. Additionally, an investment of ₹ 3 lakh in women-led sectors will empower women entrepreneurs and promote inclusive growth. Together, these measures represent a strong commitment to fostering innovation, economic growth, and youth empowerment.”

The law ministry’s eCourts project’s third phase, which seeks to upgrade the digital infrastructure of the lower judiciary, has been allocated Rs 1,500 crore in the Union Budget 2024-25.

In September last year, the Union Cabinet had approved the third phase of the eCourts project as a central sector scheme with a financial outlay of Rs 7,210 crore.

To be implemented over four years, the third phase will see digitisation of all court records, both legacy and pending cases, at an estimated cost of Rs 2,038.40 crore. A total of 3,108 crore documents will be digitised, official sources had earlier said.

As part of the third phase, the system will be migrated to cloud technology and the cost estimated for providing 25 petabytes of storage (according to existing requirement) is Rs 1,205.20 crore.

The project also seeks to establish and expand the scope of virtual courts for hearing cases by creating a robust digital infrastructure.

The sources had said Rs 413.08 crore is the cost estimate for the establishment of 1,150 virtual courts.

As part of the National eGovernance Plan, the eCourts project is under implementation since 2007 for making the Indian judiciary information and communications technology enabled. The second phase of the project concluded last year. (PTI)

Sanjiv Kanwar, Managing Director, Yara South Asia says, “We welcome the Union Budget’s strong emphasis on agriculture, particularly its aim to bolster productivity and resilience. The commitment to releasing climate-resilient crop varieties, alongside the establishment of bio-research centers, demonstrates a commendable commitment to the long-term health, sustainability, and resilience of Indian agriculture. The budget provisions for agriculture and allied sectors provide a solid foundation for these initiatives.

The attention given to pulses and oilseeds, along with the development of large-scale clusters near FPO centers and consumption centers, directly addresses the need for a robust and efficient supply chain. These large-scale clusters around consumption centers will also help in efficiently reducing the carbon footprint of the agricultural supply chain. We are also pleased to see the government’s commitment to digital public infrastructure, including the digital crop survey, which will contribute to greater transparency and data-driven decision-making in agriculture.

Furthermore, we applaud the budget’s commitment to facilitating higher participation of women in the workforce. We believe this focus will have a particularly positive impact on agriculture, where empowering women is crucial for a thriving agriculture sector. Increased opportunities for women in areas such as agricultural entrepreneurship, technology adoption, and leadership roles will benefit the entire industry.

We are particularly encouraged by the budget’s emphasis on enhancing the ease of doing business in India under Jan Vishwas bill 2.0. Streamlining regulations and creating a more conducive environment for businesses will be crucial for attracting investment and driving growth in the agricultural sector. This union budget lays a strong foundation for a future where Indian agriculture is both prosperous and sustainable.”

Sanjay Ghare, Founder & CEO, Vervotech says, the Union Budget 2024 announcements have brought forward several initiatives that promise significant positive impacts on the startup ecosystem, employment, and tourism, particularly in Bihar.

As an entrepreneur in the travel industry, he finds followig changes very encouraging and impactful for various sectors.
Startups, Employment, and Skilling:
1. Angel Tax Removal: The removal of the angel tax is a highly welcome move. This tax has been a point of contention, and its removal will undoubtedly foster a more conducive environment for startup investments and growth.
2. EPFO Contribution Reimbursement: The government’s initiative to reimburse up to ₹3,000 per month per employee for their EPFO contributions for salaries up to ₹1 lakh per month is a commendable step. This will potentially benefit around 50 lakh jobs, providing much-needed support to employers and encouraging job creation.
3. Funding for Research and Space: Allocating ₹1 lakh crore for private research and ₹1,000 crore for space research is a forward-thinking move. While the space research funding may seem modest, especially considering the cost of satellite projects, it still marks a significant step towards encouraging private investment and innovation in these critical areas.
4. Internship Opportunities: The initiative for 500 top companies to offer internships to 1 crore students, with an internship allowance of ₹5,000 per month, is fantastic. Additionally, allowing 10% of internship costs to be covered by CSR funds is a great way to integrate corporate social responsibility with skill development.
Tourism:
1. Bihar’s Tourism Development: The focus on enhancing tourism in Bihar is particularly exciting. The Mahabodhi Temple corridor in Bodhgaya being transformed similarly to the Kashi Vishwanath temple corridor will significantly boost the region’s appeal.
2. Upgrading Heritage Sites: The upgrading of the Vishnupad Temple in Gaya and the Mahabodhi Temple to world-class heritage sites will undoubtedly attract both domestic and international tourists, bringing more visibility and revenue to these culturally rich areas.
3. Nalanda as a Tourist Center: Building Nalanda as a tourist center is a noteworthy decision. Given its historical significance, this initiative will help preserve its heritage while promoting tourism.

These budgetary allocations and initiatives reflect a comprehensive approach toward fostering growth without compromising fiscal targets.

The government is realising the opportunities in F&B and the tourism sector. The food industry is the heart for the growth of any city because anyone needs 3 meals a day and If someone is traveling they explore new food. So, with this budget, we are looking for more opportunities to grow as tourist hubs and market areas.

One good thing is that the government has changed the tax slabs so that there is more disposable income for salaried people and individuals so there will be a higher spending on consumption. This should benefit our restaurants.

We have been long waiting to get tax inputs on GST, currently, we are on the lowest slab which is good but we don’t get the tax inputs so whatever GST we pay is actually an additional cost to us. I feel that the government will review this soon and give us tax inputs and credits.

The Government has kept us steady and they have a neutral view on the Auto Industry. Many incentive schemes should benefit the industry as a whole.

The Indian government unveiled its annual budget today, delivering substantial support to the tech industry, tech manufacturing, and startups.

Finance Minister Nirmala Sitharaman on Friday said that the government wanted to simplify the approach to taxation with regards to capital gains and widen the tax net.

Mr. Pawan Kumar, CEO, Elista says, “We commend the government’s proactive measures in the Union Budget 2024, particularly the introduction of the credit guarantee schemes for MSMEs in manufacturing. This initiative, facilitating term loans for the purchase of machinery and equipment without the need for collateral, is a significant step forward in the manufacturing sector. The guarantee fund providing guarantees of up to ₹100 crore will undoubtedly bolster the manufacturing industry, fostering growth and innovation.

These measures will greatly benefit the consumer electronics sector by enabling manufacturers to invest in advanced machinery and implement the latest technology, thereby enhancing production capabilities and product quality. The decision will help reduce production costs, making high-quality consumer electronics more affordable and accessible to the Indian market. Elista is poised to leverage these opportunities to drive growth and meet the evolving demands of consumers.

The government’s focus on youth development, with five dedicated schemes and a central outlay of ₹2 lakh crore over the next five years, is also highly praiseworthy. Investing in the skills and potential of 4.1 crore youth will drive our nation’s future economic growth and stability. We look forward to leveraging these initiatives to further enhance our operations, contribute to the local economy, and support the broader national objectives.”

The Budget presented by the Finance Minister is highly growth-oriented, focusing on enhancing the skills and job readiness of the youth. Incentivizing job creation in the manufacturing sector through a scheme linked to employing first-time employees is a positive step. Additionally, exempting customs duty on essential minerals like lithium, cobalt, and nickel will significantly boost India’s electric vehicle sector, reinforcing the country’s commitment to sustainability and a greener future.

Overall, this budget reflects a forward-thinking approach, emphasizing sustainable growth and equipping the youth for the evolving global landscape.

Over Rs 200 crore have been earmarked for expenditure on “examination and selection” of the civil servants by the Union Public Service Commission (UPSC) in the 2024-25 Budget announced on Tuesday.

The Commission conducts the civil services examination annually in three stages — preliminary, main and interview — to select officers of Indian Administrative Service (IAS), Indian Foreign Service (IFS) and Indian Police Service (IPS), among others.

The UPSC has been given Rs 425.71 crore for the ongoing fiscal in the Budget presented by Finance Minister Nirmala Sitharaman.

Of these, Rs 208.99 crore is for expenditure on salaries and allowances of the chairman and members, besides administrative expenses, among others.

A total of Rs 216.72 crore has been allocated for the “expenditure in connection with the examinations, recruitment tests and selections conducted by the Union Public Service Commission”, according to the Budget documents.

In a move that signals fiscal prudence, the government reduced its subsidy outlay for food, fertiliser, and fuel by 7.8 per cent in the full Budget for 2024-25, presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on Tuesday.

The total subsidy allocation stands at Rs 3,81,175 crore for the current fiscal, down from the previous year’s figure of Rs 4,13,466 crore. This reduction aligns with the estimates projected in February’s interim budget.

Breaking down the allocations, the food subsidy has been set at Rs 2,05,250 crore, a decrease from the revised estimates of Rs 2,12,332 crore for the fiscal ending March 31, 2024.

This subsidy covers the difference between the economic cost of foodgrains procured by the government and their sales realisation under the National Food Security Act (NFSA) and other welfare schemes, benefiting approximately 80 crore individuals.

The rupee declined 5 paise to hit an all-time low of 83.71 (provisional) against the US dollar on Tuesday after the government raised tax rates on capital gains in the FY25 Budget.

Besides, a weak tone in the US dollar and weakness in crude oil prices also put pressure on the domestic unit, forex traders said.

At the interbank foreign exchange market, the local unit opened at 83.64 and touched an intraday high of 83.61 and touched an all-time intraday low of 83.71 against the dollar during the trading session.

It finally settled at an all-time low of 83.71 (provisional) against the American currency, registering a fall of 5 paise from its previous close.

“Budget 2024 stands out for its people-centric vision and powerfully advancing affordable housing in urban areas with a landmark allocation of Rs. 10 lakh crore under the PM Awas Yojana-Urban 2.0. As it targets to meet the housing needs of 1 crore poor and middle-class families, it is expected to boost affordable housing segment and create millions of jobs in the process.

The allocation of Rs. 11.11 lakh crore for infrastructural development, along with the innovative PPP model for rental housing in urban centers and the strategic push for transit-oriented development showcases a forward-thinking approach. These initiatives will undeniably propel real estate development in the right direction. Moreover, the reduction in stamp duty for women buyers will help build an inclusive real estate market.

In essence, the budget represents a strategic economic boost, ensuring India’s macro growth remains resilient amid global uncertainties. By prioritizing key sectors such as skilling, urban development, and infrastructure, this budget injects crucial energy and momentum into the economy.”

“The Union Budget unveiled recently is a monumental stride towards positioning India as a global logistics powerhouse. It aligns seamlessly with the ‘Make in India’ initiative and lays a solid foundation for India’s future growth. This budget has hit all the right notes – focusing on infrastructure development, leveraging technology & supporting MSMEs including traditional artisans through innovative measures such as e-commerce export hubs.

We commend the government’s commitment to infrastructure development, particularly the announcement of new economic corridors. These initiatives, along with strategic investments in roadways and airports, are poised to streamline logistics operations, reduce costs and enhance connectivity across key regions.

The budget’s focus on MSMEs is particularly encouraging. The provision of no-collateral term loans for manufacturing MSMEs, coupled with expanded MUDRA loan limits and the new credit guarantee scheme will provide much-needed access to working capital to MSMEs. This will empower them to embrace technology and compete globally.

We also applaud the government’s vision in leveraging technology through initiatives like an integrated tech platform for IBC and developing Digital Public Infrastructure. These measures are set to enhance transparency, efficiency & ease of doing business in the logistics sector.

It’s also noteworthy that TDS rates have been reduced from 1% to 0.1% for e-commerce operators – this move simplifies operations while promoting growth within this rapidly expanding segment!

Lastly but importantly – lower customs duties on crucial healthcare equipment & medicines demonstrate strong commitment towards improving healthcare infrastructure via efficient logistics.

This budget, with its emphasis on infrastructure, technology, and support for MSMEs, charts a clear path towards a more robust, efficient, and globally competitive logistics landscape in India.”

“The government has presented a forward-looking and growth-oriented budget that rightly prioritizes the transformation of Indian agriculture. The comprehensive review of agricultural research focusing on productivity and climate resilience is a much-needed step. We are also encouraged by the government’s commitment to involve the private sector and domain experts to further enhance this endeavor, fostering a collaborative approach towards agricultural innovation and building a larger innovation ecosystem.

The introduction of 109 new high-yielding and climate-resilient varieties of 32 field and horticultural crops further showcases the government’s dedication to providing farmers with the support they need to thrive in the changing environment. Similar efforts are needed to make the expedited availability of modern agricultural inputs to enhance productivity. The digital public infrastructure for agriculture in partnership with States, integrating 6 crore farmers and their land into a digital registry will increase transparency and also democratize access to digital services. This will lay a strong foundation for precision agriculture. The government’s vision of developing vegetable production closer to consumption centers and promoting FPOs, cooperatives, and startups for efficient supply chains is likely to benefit both farmers and consumers. It is encouraging to see the government’s increased focus on ease of doing business with Jan Vishwas bill 2.0 which will strengthen FDI in agriculture and also help in modernizing the agriculture sector with technology and R&D. Further decriminalisation of minor offences may be ensured even in the Insecticides Act 1968. The initiative to open 1000 ITIs is a timely initiative. Relevant centres of ITIs must start drone pilot training and maintenance as an option to feed the skill et needed to grow the drone led agricultural economy.

Overall, this budget has laid a strong foundation for a more resilient, productive, and sustainable agricultural sector in the country. We remain committed to partnering with the government in its endeavor to transform Indian agriculture and improve farmer livelihoods and the country’s food security.”

The government has lowered taxes because it wants more investments, according to Nirmala Sitharaman, who also suggested new tax arrangements for charities, international shipping businesses, and capital gains rationalisation.

Additionally, she lowered the corporation tax rate for overseas businesses from 40% to 35%.

Union Finance Minister Nirmala Sitharaman holds a press conference, after presenting Union Budget 2024 today.

On 12.5% tax on long-term capital gains, Union Finance Minister Nirmala Sitharaman says, “…We wanted to simplify the approach to taxation – also for the capital gains. Second, if anything, the average taxation has actually come down when we say it is 12.5%. We have worked out for each of the different asset classes…The point that we brought it down from below the average to 12.5% encourages investment in the markets…”