On July 23, 2024, Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25, showcasing a robust framework for India’s economic and infrastructural advancement. The Union Budget 2024 emphasizes enhancing productivity, resilience, and inclusivity across various sectors.
Total Expenditure and Economic Highlights
The Union Budget 2024-25 details a total expenditure of INR 48.21 Lakh-Crore. Economic indicators show that India’s inflation remains low and stable, targeting 4%. Core inflation stands at 3.1%. The budget also introduces Prime Minister Narendra Modi’s package, comprising five schemes. These schemes aim to provide employment, skilling, and other opportunities for 4.1 crore youth over the next five years. Furthermore, the package includes a central outlay of INR 2 Lakh-Crore.
Also Read: Economic Survey FY 2023-24: Unveiling Industrial Sector Achievements & Future Projections
Budget Priorities
The Union Budget 2024-25 focuses on 9 key priorities:
- Productivity and Resilience in Agriculture
- Employment & Skilling
- Inclusive Human Resource Development and Social Justice
- Manufacturing & Services
- Urban Development
- Energy Security
- Infrastructure
- Innovation, Research & Development
- Next Generation Reforms
Infrastructure Investment in Union Budget 2024
The Union Budget 2024-25 allocates INR 11.11 Lakh-Crore for capital expenditure, maintaining the same target announced in the interim budget earlier this February. This allocation represents 3.4% of GDP. The investment aims to strengthen infrastructure nationwide, providing a solid foundation for economic growth.
Regional Development Initiatives
The budget supports several regional development initiatives:
- Purvodaya Plan: significant investments will be allocated to enhance infrastructure in key industrial nodes along major corridors. Specifically, the plan includes funding for essential infrastructure such as water supply systems, power distribution networks, railway connections, and road networks.
This funding will benefit the Kopparthy node on the Vishakhapatnam-Chennai Industrial Corridor and the Orvakal node on the Hyderabad-Bengaluru Industrial Corridor. - Amritsar-Kolkata Industrial Corridor: This initiative includes developing an industrial node at Gaya to stimulate industrial growth in the eastern region.
Key Projects and Investments
The Union Budget 2024-25 outlines significant investments in key projects:
Road Connectivity: INR 26,000 crore is allocated for critical road projects, including the Patna-Purnea Expressway, Buxar-Bhagalpur Expressway, and additional bridges over the Ganga at Buxar.
It also encompasses improvements in Bodhgaya, Rajgir, Vaishali, and Darbhanga, all of which align with the goals of the Purvodaya Plan to stimulate regional development and industrial growth.
Power Sector: INR 21,400 crore is dedicated to power projects, including establishing a new 2400 MW power plant at Pirpainti.
Infrastructure Development: New airports, medical colleges, and sports facilities will be built in Bihar.
The Polavaram Irrigation Project in Andhra Pradesh will receive full financing to support local agriculture.
Pradhan Mantri Gram Sadak Yojana (PMGSY) Phase IV: This phase will provide all-weather connectivity to 25,000 newly eligible rural habitations.
Industrial and Urban Development
Urban Development
The Union Budget 2024-25 outlines several key initiatives under the urban development sector to enhance infrastructure and improve living standards in cities:
Creative Brownfield Redevelopment:
The government will formulate a framework for enabling policies, market-based mechanisms, and regulations to promote the creative redevelopment of existing cities. This initiative aims to have a transformative impact on urban areas by revitalizing underutilized or abandoned lands.
PM Awas Yojana:
- The budget allocates resources for the construction of 3 crore additional houses under the PM Awas Yojana in both rural and urban areas across the country.
- Specifically, under PM Awas Yojana Urban 2.0, the housing needs of 1 crore urban poor and middle-class families will be addressed with an investment of INR 10 Lakh-Crore. This initiative aims to provide affordable housing and improve the quality of life for these families.
Transit-Oriented Development (TOD):
The government will formulate TOD plans for 14 large cities with populations above 30 lakh. These plans will include an implementation and financing strategy to ensure sustainable urban growth and efficient public transportation systems.
Industrial Development
The Union Budget 2024-25 outlines several significant investments and initiatives aimed at bolstering industrial growth and infrastructure:
- National Industrial Corridor Development Programme: 12 new industrial parks will be sanctioned under this programme, aimed at enhancing industrial infrastructure and fostering economic activity across key regions.
- Industrial Training Institutes (ITIs): The budget allocates funds for upgrading 1,000 ITIs in a hub-and-spoke arrangement over the next five years.
- Industrial Parks Development: The budget includes plans for establishing new industrial parks with comprehensive infrastructure in partnership with state and private players. These parks will be developed in or near 100 cities, aiming to drive industrial growth and regional development.
- Rental Housing for Industrial Workers: The Viability Gap Funding (VGF) model will facilitate the development of rental housing with dormitory-style accommodations for industrial workers.
Additional Infrastructure Projects
The budget includes:
- Financial support for projects like the Kosi-Mechi intra-state link and 20 other schemes, including barrages and river pollution abatement.
- Development of Pilgrimage Sites: Comprehensive development of Vishnupad Temple and Mahabodhi Temple Corridors in Bihar to enhance their status as major pilgrimage and tourist destinations.
Expenditure of Major Items
| Sector | INR Crore |
| Defence | 454,773.00 |
| Rural Development | 265,808.00 |
| Agriculture and Allied Activities | 151,851.00 |
| Home Affairs | 150,983.00 |
| Education | 125,638.00 |
| IT and Telecom | 116,342.00 |
| Health | 89,287.00 |
| Energy | 68,769.00 |
| Social Welfare | 56,501.00 |
| Commerce & Industry | 47,559.00 |
Allocation to Major Schemes
| Scheme | 2023-24 (BE) INR Crore | 2024-25 (BE) INR Crore |
| Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) | 60,000 | 86,000 |
| Research and Development Projects | 840 | 1,200 |
| Nuclear Power Projects | 442 | 2,228 |
| PLI for Pharmaceutical Industry | 1,200 | 2,143 |
| Development of Semiconductors and Display Manufacturing | 3,000 | 6,903 |
| Solar Power (Grid) | 4,970 | 10,000 |
| Direct Benefit Transfer- LPG | 180 | 1,500 |
| Lines of Credit under the IDEA Scheme | 1,300 | 3,849 |
Conclusion
In conclusion, the Union Budget 2024-25 emphasizes strategic investment in infrastructure, regional development, and inclusive growth. With substantial investments and detailed plans across various sectors, the budget sets a transformative course for India’s future. The Union Budget 2024 aims to drive progress and development throughout the nation.
For more detailed insights, you can access the full document BUDGET 2024-2025 NIRMALA SITHARAMAN.
Also Read: Interim Budget 2024-25: A Glimpse into Bharat’s Prosperous Future
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