Key Budget Highlights: India Fiscal Year 2025
Key Focus Areas
Finance Minister Nirmala Sitharaman emphasized jobs, skilling, youth, agriculture, and the poor, addressing critical political issues in the budget.
Nine Priorities in Budget 2024
1. Productivity and Resilience in Agricultur
2. Employment and Skilling
3. Improved Human Resources, Social Justice
4. Manufacturing and Services
5. Urban Development
6. Energy Security
7. Infrastructure
8. Innovation, Research, and Development
9. Next Generation Reforms
1. Agriculture
Budget Plans for Agricultural Output
Strengthen production, storage, and marketing of oil-seeds
Develop large-scale clusters for vegetable production near consumption centres
Implement a digital crop survey for Kharif in 400 districts
Agriculture Allocation
Rs 1.52 lakh crore set aside for agriculture and allied sectors in FY25
2. Employment
New Schemes for Employment Generation
Scheme for first-timers: Provide one month’s wage to all persons newly entering the workforce in all sectors, benefiting 210 lakh youths
Job creation in manufacturing
Support to employers
Plan for Job Growth
Incentives for employees and employers in the first four years of employment
Government reimbursement to employers: Rs 3,000 per month towards EPFO contribution for two years for each additional employee
Youth Skilling Scheme Provision Hiked
Model skill loan scheme revised to facilitate loans up to Rs 7.5 lakh with government guarantee, benefiting 25,000 students per year
Paid Internship Programme
Internship in 500 top companies: 1 crore youth to benefit, with an internship allowance of Rs 5,000 per month and one-time assistance of Rs 6,000
3. Regional Development
Eastern India – ‘Purvodaya’ Scheme
Target states: Bihar, Jharkhand, Orissa, and Andhra Pradesh
Bihar commitments: Infrastructure projects worth Rs 26,000 crore, power projects worth Rs 21,400 crore
Andhra Pradesh: Rs 15,000 crore grant for development of Amaravati
- Women and Rural Development
Women-Focused Schemes
Over Rs 3 lakh crore allocated for schemes benefiting women’s development
Rural Infrastructure Spending
Rs 2.66 lakh crore for rural development, including rural infrastructure
5. MSMEs
Budget Offerings for MSMEs
Credit guarantee scheme for MSMEs in manufacturing, operating on pooling of credit risks
Mudra loan provision hiked: Limit enhanced to Rs 20 lakh for those who’ve paid previous loans under ‘Tarun’ category
Export promotion: SIDBI to open 24 new branches in FY25, e-commerce export hubs to be set up for MSMEs
6. Urban Development
PM Awaas Yojana Urban Spending Plan
PM Awaas Yojana – Urban 2.0: Investment of Rs 10 lakh crore to cater to 1 crore urban poor with Central assistance of Rs 2.2 lakh crore over the next five years
Urban Development Plans
Transit-oriented development programmes for 14 large cities
100 street food hubs: Scheme to develop hubs in select cities over five years
Rooftop Solar Scheme
PM Surya Ghar Muft Bijli: Install rooftop solar for 1 crore households
Urban Housing
Investment of Rs 10 lakh crore to address housing needs of 1 crore urban poor and middle-class families
7. Energy and Innovation
Nuclear Energy
Bharat small reactors: Government partnership with the private sector
NTPC and BHEL JV: Set up 800 MW commercial plant using AUSC technology
Space Economy
Rs 1,000 crore boost: Expand space economy five times in the next 10 years
8. Fiscal and Infrastructure
Capex Set at Rs 11.11 Lakh Crore
Capital expenditure target of Rs 11.11 lakh crore for FY25
Long-term interest-free loans: Provision of Rs 1.5 lakh crore for states
IBC Recovery
Rs 3.3 lakh crore recovered through the resolution of more than 1,000 companies
Mining
Auction of offshore blocks: Government to launch the first tranche of offshore blocks for mining
9. Funding Plans for R&D Boost
Operationalise ‘Anusandan’ national research fund for basic research and prototype development
Mechanism for spurring private sector-driven R&D with a financing pool of Rs 1 lakh crore
10. Fiscal Deficit and Borrowing
Fiscal Deficit
FY25 fiscal deficit seen at 4.9% of GDP
Total receipts (excluding borrowings): Rs 32.07 lakh crore
Total expenditure: Rs 48.21 lakh crore
Net tax receipts: Rs 25.83 lakh crore
Borrowing Plan
Gross market borrowing: Rs 14.01 lakh crore
Net market borrowing: Rs 11.63 lakh crore
Aim to reduce fiscal deficit to 4.5% of GDP by FY26
11. Customs Duty Cuts
Mobile phones, related parts, chargers: Cut to 15%
Exempt customs duty on 25 critical minerals, reduce duty on two
Reduce customs duty on some brood stock, shrimp, and fish feed to 5%
Reduce customs duty on real down-filling material from duck or goose
12. Capital Gains Taxation Simplified
Short-term capital gains on some financial assets: 20%
Long-term capital gains on financial and non-financial assets: 12.5%
Exemption limit for capital gains on some financial assets raised to Rs 1.25 lakh per year
Listed financial assets held for more than a year to classify as long-term
Unlisted financial and non-financial assets must be held for two years to classify as long-term
Unlisted bonds, debentures, debt MFs, market-linked debentures taxed at slab rate
13. Corporate Tax Cuts for Foreign Firms
Corporate tax rate for foreign companies reduced to 35% from 40%
14. Securities Transaction Tax Raised
Futures: Raised to 0.02%
Options: Raised to 0.1%
Income Tax Rejigs
Deduction of employer expenditure towards NPS raised to 14% from 10% of salary
Deduction of expenditure up to 14% of salary from income provided under the new tax regime
New Tax Regime Slabs Changed
Income of Rs 0-3 lakh: 0%
Rs 3-7 lakh: 5%
Rs 7-10 lakh: 10%
Rs 10-12 lakh: 15%
Rs 12-15 lakh: 20%
Above Rs 15 lakh: 30%
Standard Deduction limit raised to 75K from 50K under new Tax Regime
