Union Budget 2024-25: Detailed Breakdown

Finance Minister Mrs. Nirmala Sitharaman presented the Union Budget 2024-25 today, outlining the government’s financial roadmap for the upcoming fiscal year. This budget is pivotal as it aligns with the vision of ‘Viksit Bharat’ by 2047, focusing on infrastructure, social welfare, and fiscal responsibility.

Key Announcements and Allocations

1. Infrastructure and Housing
   • Total Allocation: ₹10 lakh crore
   • Key Projects:
     • National Highway Expansion:
       • Length: 25,000 km
       • Budget: ₹2 lakh crore
       • Details: Includes the construction of new highways and the expansion of existing ones to improve connectivity across states.
     • Smart Cities Mission:
       • Number of Cities: 100
       • Budget: ₹1.2 lakh crore
       • Details: Focus on sustainable urban development with smart infrastructure, efficient public transport, and green spaces.
     • Affordable Housing:
       • Budget: ₹1.5 lakh crore
       • Details: Construction of 20 lakh new houses under the Pradhan Mantri Awas Yojana (PMAY), targeting urban and rural areas.
     • Urban Infrastructure:
       • Budget: ₹1 lakh crore
       • Details: Includes metro rail projects in 10 new cities, development of urban transport systems, and upgrading existing infrastructure.
   • Impact: These initiatives aim to enhance connectivity, promote urban development, and provide affordable housing to millions, boosting economic activity and improving living standards.
2. Fiscal Deficit
   • Target: 5.1% of GDP for FY25
   • Strategy:
     • Revenue Generation:
       • Tax Revenue: ₹30 lakh crore
       • Non-Tax Revenue: ₹5 lakh crore
       • Details: Enhanced tax compliance, broadening the tax base, and revenue from public sector enterprises and spectrum auctions.
     • Expenditure Control:
       • Total Expenditure: ₹45 lakh crore
       • Capital Expenditure: ₹10 lakh crore
       • Details: Rationalization of subsidies, better targeting of welfare schemes, and efficient public spending.
   • Impact: Maintaining fiscal discipline while supporting economic growth, ensuring a stable macroeconomic environment.
3. Social Sector Spending
   • Health: ₹2.5 lakh crore
     • Initiatives:
       • New AIIMS-like Institutions:
         • Number: 50
         • Budget: ₹50,000 crore
         • Details: Establishment of new institutions to improve healthcare access and quality.
       • Ayushman Bharat Expansion:
         • Coverage: 10 crore more families
         • Budget: ₹30,000 crore
         • Details: Expansion of health insurance coverage to more families.
       • Primary Healthcare:
         • Budget: ₹20,000 crore
         • Details: Upgrading primary healthcare centers and improving rural healthcare infrastructure.
   • Education: ₹1.8 lakh crore
     • Initiatives:
       • National Digital Education Mission:
         • Budget: ₹50,000 crore
         • Details: Digital infrastructure in schools and colleges, promoting online education.
       • School Upgradation:
         • Number: 5000 schools
         • Budget: ₹30,000 crore
         • Details: Upgrading schools to international standards with better facilities and resources.
       • Higher Education:
         • Budget: ₹20,000 crore
         • Details: Establishing 20 new universities and upgrading existing ones to improve higher education quality.
   • Impact: These measures aim to improve healthcare access and quality education, fostering a healthier and more educated population, which is essential for long-term economic growth.
4. Digital Infrastructure
   • Total Allocation: ₹1 lakh crore
   • Key Initiatives:
     • Rural Internet Connectivity:
       • Budget: ₹30,000 crore
       • Details: Expansion of high-speed internet to 1 lakh villages, improving digital access in rural areas.
     • National AI and Robotics Research Center:
       • Budget: ₹20,000 crore
       • Details: Establishment of a national center to promote research and development in AI and robotics.
     • Digital Services:
       • Budget: ₹10,000 crore
       • Details: Development of digital services and platforms to enhance e-governance and public service delivery.
   • Impact: Enhancing digital connectivity and fostering innovation in technology sectors, bridging the digital divide and promoting inclusive growth.
5. Defense and Security
   • Total Allocation: ₹5.5 lakh crore
   • Key Focus Areas:
     • Modernization of Armed Forces:
       • Budget: ₹2 lakh crore
       • Details: Procurement of advanced weaponry and equipment to modernize the armed forces.
     • Border Infrastructure:
       • Budget: ₹1 lakh crore
       • Details: Strengthening border infrastructure, including roads, bridges, and surveillance systems.
     • Cybersecurity:
       • Budget: ₹50,000 crore
       • Details: Enhancing cybersecurity capabilities and protecting critical infrastructure.
   • Impact: Ensuring national security and preparedness against external threats, while also boosting the defense manufacturing sector.

Economic Projections

• GDP Growth: Projected at 6.5% for FY25, driven by increased capital expenditure and targeted social sector investments.
• Inflation: Expected to be contained at 4.5%, supported by prudent fiscal management and supply-side measures.
• Revenue Generation:
  • Tax Revenue: ₹30 lakh crore, with a focus on improving tax compliance and broadening the tax base.
  • Non-Tax Revenue: ₹5 lakh crore, including dividends from public sector enterprises and spectrum auctions.
• Expenditure:
  • Total Expenditure: ₹45 lakh crore, with a significant portion allocated to capital expenditure and social sector spending.
  • Capital Expenditure: ₹10 lakh crore, aimed at boosting infrastructure development and economic growth.

The Union Budget 2024-25 reflects a balanced approach towards economic development, social welfare, and fiscal discipline. With substantial investments in infrastructure, healthcare, education, and defense, the budget aims to lay a strong foundation for sustainable growth and development. The government’s commitment to fiscal prudence and targeted social sector spending is expected to create a stable economic environment conducive to long-term growth.