Introduction

The Union Budget is India’s annual financial statement, outlining the government's revenue and expenditure plans. It serves as a roadmap for economic growth, balancing fiscal prudence with development priorities. The Budget for FY 2024-25 focuses on infrastructure, MSMEs, credit support, urban development, and capital expenditure (Capex) to drive economic resilience and growth.

Key Budget Numbers

Total Budget Size: ₹47.6 lakh crore

Fiscal Deficit Target: 5.9% of GDP

Nominal GDP Growth Projection: 10.5%

Capex Outlay: ₹11.11 lakh crore (up 33% YoY)

Revenue Expenditure: ₹35.4 lakh crore

Tax Revenue Target: ₹26.2 lakh crore

Disinvestment Target: ₹50,000 crore

Debt-to-GDP Ratio: 57.2%

Infrastructure Boost: Capex at the Core

Capital expenditure (Capex) remains a key growth driver, with an allocation of ₹11.11 lakh crore, nearly 3.3% of GDP. The focus is on enhancing connectivity and productivity across sectors:

Railways: ₹2.4 lakh crore for modernization, new corridors, and bullet train projects.

Highways & Roads: ₹2.7 lakh crore for expressways, rural roads, and highway expansions.

Aviation: ₹20,000 crore for new airports, regional connectivity, and Air India privatization support.

Ports & Waterways: ₹10,000 crore to boost inland water transport and port modernization.

MSME Sector: Strengthening the Backbone of the Economy

Micro, Small, and Medium Enterprises (MSMEs) employ nearly 11 crore people and contribute 30% to GDP. The Budget introduces key support measures:

Credit Guarantee Scheme Expansion: ₹9,000 crore infused to facilitate ₹2 lakh crore in collateral-free credit.

Subsidized Interest Rates: Credit lines with a 1% interest rate reduction for MSMEs.

Tax Incentives: Extension of presumptive taxation benefits to businesses with turnover up to ₹3 crore.

Ease of Doing Business: Simplified GST compliance and faster processing of dues to MSMEs.

Credit Support & Financial Sector Reforms

A well-functioning credit ecosystem is crucial for sustained economic growth. The Budget addresses this through:

Banking Sector Reforms: ₹50,000 crore earmarked for recapitalization of Public Sector Banks (PSBs).

NBFCs & FinTech Support: Policy frameworks to enhance lending to MSMEs and rural entrepreneurs.

Credit Growth Target: Aiming for 15% annual growth in credit to priority sectors.

Sovereign Green Bonds: ₹20,000 crore for financing sustainable projects.

Urban Infrastructure: Smart Cities and Housing

With rapid urbanization, India needs better infrastructure to accommodate growing populations. The Budget includes:

Smart Cities Mission Expansion: ₹50,000 crore for tech-driven urban planning and better amenities.

PM Awas Yojana (Urban): ₹80,000 crore to build 80 lakh new affordable houses.

Metro & Public Transport: ₹30,000 crore for new metro lines and electric buses in major cities.

Swachh Bharat 2.0: ₹12,000 crore for waste management, clean water, and sanitation in cities.

Rural Development and Agri-Infrastructure

PM-KISAN Scheme: ₹75,000 crore for direct income support to 12 crore farmers.

Irrigation & Rural Roads: ₹1.2 lakh crore under PM Gram Sadak Yojana & irrigation projects.

Digital Agriculture: ₹3,000 crore for AI-driven agri-tech startups and data analytics.

Green Growth & Energy Transition

Renewable Energy Investments: ₹35,000 crore for solar, wind, and hydrogen energy projects.

Electric Vehicle (EV) Push: ₹10,000 crore in subsidies and charging infrastructure.

Coal Gasification & Nuclear Energy: ₹15,000 crore for cleaner alternatives.

Social Welfare & Employment Generation

MGNREGA: ₹60,000 crore for rural employment.

Skill India 2.0: ₹5,000 crore for vocational training programs.

Healthcare: ₹90,000 crore for Ayushman Bharat and new medical colleges.

Education: ₹1.12 lakh crore for digital classrooms and research funding.