In-Depth Analysis of Union Interim Budget 2024-2025 for Government Exam Aspirants

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The Union Interim Budget 2024-2025, presented by Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman, lays out a comprehensive Financial plan aimed at sustaining economic growth, promoting development, and addressing key challenges. This budget, crucial for government exam aspirants, encapsulates various aspects crucial for understanding India’s economic trajectory and government’s priorities.

Total Expenditure and Capital Outlay

The budget plans to spend a total of ₹47.66 lakh crore, which is 6.1% more than last year. A big chunk of this money, about ₹11.1 lakh crore, will go into improving infrastructure.This shows that the government really wants to make things like roads, bridges, and buildings better, which helps the country grow.

Receipts and Revenue Trends

Total receipts, excluding borrowings, are projected at ₹ 27.56 lakh crore, showcasing a robust revenue receipt of ₹ 30.03 lakh crore. This indicates a positive momentum in economic activities and a trend towards formalization, which is crucial for aspirants to comprehend the financial health of the nation.

Sector-Wise Allocation

A major amount of the budget is allocated to central sector and centrally funded projects. Defence, Road Transport & Highways, and Railways are the major recipients, accounting for 54% of total expenditure. This distribution highlights the government’s prioritisation of sectors critical to infrastructure development and national security.

Deficit Figures and Financial Management

The budget wants to bring down the national debt to 5.1% of the country’s total earnings, which shows they’re being careful with money and managing it wisely. They also want to cut down the amount of money they’re falling short on from taxes to just 2% of what the country makes, showing they’re serious about making the financial situation stronger.

Allocation of National Tax Revenues to States

The budget is increasing the amount of money going to states by 8.4%, which adds up to ₹22.74 lakh crore. This includes funds from taxes collected by the central government, grants, and loans for things like building infrastructure. It’s really important for exam takers to understand this because it shows how money moves between different levels of government and how they collaborate financially to improve things for everyone.

Key Schemes and Initiatives

The budget outlines allocations for flagship schemes like the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and Pradhan Mantri Awas Yojana. These schemes play a pivotal role in poverty alleviation, rural development, and housing for the marginalized sections of society. Aspirants must comprehend the funding patterns and objectives of these schemes for a holistic understanding of government policies.

Taxation and Compliance Measures

No changes have been proposed in taxation, ensuring continuity and stability for businesses and taxpayers. However, certain tax benefits for Start-Ups and investments by sovereign wealth or pension funds have been extended. Additionally, efforts to improve taxpayer services and streamline tax administration are highlighted, reflecting the government’s commitment to ease of living and ease of doing business.

Indirect Tax Reforms

The budget emphasizes the positive impact of Goods and Services Tax (GST) in reducing compliance burden and unifying the indirect tax regime. Noteworthy is the doubling of the tax base of GST and a significant increase in average monthly gross GST collection. States have also benefited from GST, with improved revenue streams contributing to overall fiscal stability.

White Paper on Indian Economy

In a significant move, the government plans to release a white paper on the status of the Indian economy, focusing on the period till 2014 and the subsequent developments. This document aims to provide insights into the economic trajectory, challenges, and policy responses, offering invaluable lessons for aspirants studying economic policies and governance.

Key Takeaways From Union Interim Budget 2024 – 2025

  • Growth Projection: India’s Real GDP projected to grow at 7.3% in FY 2023-24.
  • Financial Deficit: Financial deficit estimated to be 5.1% of GDP, adhering to the path of financial consolidation.
  • Tax Rates: No proposed changes in tax rates, providing stability in the tax regime.
  • FDI Inflow: Significant FDI inflow of USD 596 billion during 2014-23, indicating a favorable investment climate.
  • Government Priorities: Emphasis on upliftment of marginalized sections including the poor, women, youth, and farmers.
  • Interest-Free Loans: Establishment of a corpus of ₹1 lakh crore with fifty-year interest-free loans for youth, promoting entrepreneurship and innovation.
  • Infrastructure Development: Allocation of funds for railway corridor programs and enhancement of aviation infrastructure.
  • Population Growth: Formation of a high-powered committee to address challenges arising from fast population growth and demographic changes.
  • Policy Continuity: Extension of tax benefits to startups and sovereign wealth funds, ensuring continuity in taxation policies.

The Union Interim Budget 2024-2025 embodies the government’s vision for inclusive growth, fiscal prudence, and sustainable development. For aspirants preparing for government exams, a thorough understanding of the budgetary provisions, sectoral allocations, fiscal targets, and policy initiatives is essential. It equips them with the knowledge necessary to comprehend India’s economic landscape and governance priorities.

Below are some frequently asked questions (FAQs) about the Union Interim Budget 2024-2025 for government exam aspirants:

Q1: What is the Union Interim Budget?

A1: The Union Interim Budget is a budget presented by the government during an election year when it is not feasible to present a full-fledged budget. It outlines the government’s expenditure plans and revenue projections for the upcoming financial year until a new government is formed and presents a full budget.

Q2: Who presents the Union Interim Budget?

A2: The Union Interim Budget is presented by the Finance Minister of India in the Parliament.

Q3: What are the key highlights of the Union Interim Budget 2024-2025?

A3: Some key highlights of the Union Interim Budget 2024-2025 include:

  • Increase in capital expenditure to ₹11.1 lakh crore
  • Projected GDP growth rate of 7.3%
  • Total expenditure of ₹47.66 lakh crore
  • No changes in tax rates
  • Focus on sectoral allocations, including defense, infrastructure, and social welfare

Q4: How does the Union Interim Budget impact the economy?

A4: The Union Interim Budget sets the tone for economic policies and government spending in the upcoming financial year. It influences investment decisions, fiscal policies, and overall economic sentiment. Therefore, understanding its provisions and implications is crucial for stakeholders, including investors, businesses, and policymakers.

Q5: What is the significance of analyzing the Union Interim Budget for government exam aspirants?

A5: Analyzing the Union Interim Budget is essential for government exam aspirants as it covers various topics relevant to economics, public finance, and governance. Questions related to budget analysis are often included in exams to assess candidates’ understanding of economic concepts, policy implications, and governance issues. Therefore, a thorough understanding of the budget is instrumental in scoring well in exams and securing government positions.

Q6: Where can I find more information about the Union Interim Budget 2024-2025?

A6: You can visit PIB for more understanding of budget

Also Read, Telangana State Budget

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