Union Budget 2024-25: Key Highlights and Analysis for UPSC and BPSC Aspirants

Economic Growth and Fiscal Management

• GDP Growth Target: The government aims for a 7.5% GDP growth rate, leveraging robust manufacturing, services, and agriculture sectors.
• Fiscal Deficit: Projected to be 5.8% of GDP, a decrease from the previous year's 6%, aligning with the goal of reducing the fiscal deficit to 4.5% by 2025-26.

Taxation

• Direct Taxes:
  • Income Tax Slabs: No major changes; increased exemption limit for senior citizens.
  • Corporate Tax: Reduced to 22% for companies with an annual turnover of up to ₹500 crore, promoting MSMEs.
• Indirect Taxes:
  • GST: No change in rates, but simplified compliance for small businesses.
  • Customs Duty: Rationalization to boost domestic manufacturing.

Social Sector Initiatives

• Health:
  • Allocation of ₹2.5 lakh crore.
  • Expansion of the Ayushman Bharat scheme.
• Education:
  • ₹1 lakh crore allocated, focusing on digital learning and skill development.
  • Establishment of 50 new Kendriya Vidyalayas and 20 new IITs.
• Social Welfare:
  • Enhanced funding for PM-KISAN and MGNREGA.
  • New pension scheme for unorganized sector workers, ensuring a minimum pension of ₹3,000 per month.

Infrastructure Development

• Transportation:
  • ₹1.8 lakh crore for railways expansion and modernization.
  • ₹1.2 lakh crore for highways and expressways development.
• Urban Development:
  • ₹50,000 crore for the Smart Cities Mission.
  • Additional funding for affordable housing under PMAY.

Agriculture and Rural Development

• Agriculture:
  • ₹1.5 lakh crore allocated.
  • New schemes for organic farming and digital agriculture.
• Rural Development:
  • ₹1 lakh crore for infrastructure, including roads, electrification, and water supply.

Industry and Commerce

• Manufacturing:
  • PLI scheme extended to more sectors.
  • Focus on electronics, textiles, and pharmaceuticals.
• Start-ups:
  • Continued support with tax incentives and easier access to credit.

Environment and Climate Change

• Green Energy:
  • ₹30,000 crore for renewable energy projects.
  • Expansion of the National Solar Mission targeting 200 GW by 2025.
• Sustainable Development:
  • New programs for waste management and water conservation.

Defence

• Budget Allocation:
  • ₹5.5 lakh crore, with a focus on modernization and indigenous production under the Make in India initiative.

Key Takeaways for UPSC and BPSC Aspirants

• Focus Areas: Economic growth, fiscal management, social welfare, and infrastructure are the pillars of this budget.
• Schemes and Allocations: Understanding major schemes, their funding, and objectives is crucial for both prelims and mains examinations.
• Policy Changes: Analyzing the impact of changes in taxation, sector-specific incentives, and regulatory measures helps in framing answers related to governance and economy.
• Sustainable Development: The budget's focus on green energy and sustainable development aligns with global environmental goals, an important area for essay and general studies papers.

Education Sector Highlights

• Budget Allocation: ₹1 lakh crore aimed at improving infrastructure, accessibility, and quality of education.
• School Education:
  • Expansion of the PM eVIDYA program and digital classrooms.
  • Establishment of 50 new Kendriya Vidyalayas.
  • Increased funding for teacher training.
• Higher Education:
  • Establishment of 20 new IITs, 10 new IIMs, and 5 new IISERs.
  • ₹5,000 crore for the National Research Foundation.
  • Enhanced focus on skill development.
• Inclusive Education:
  • Expansion of Samagra Shiksha Abhiyan.
  • Special provisions for girls' education and support for marginalized groups.
• Technology Integration:
  • Continued development of the National Digital Education Architecture (NDEAR).
  • Promotion of MOOCs through the SWAYAM platform.

Infrastructure Highlights

• Total Allocation: ₹4.5 lakh crore dedicated to infrastructure development.
• Transportation:
  • Bharatmala Pariyojana with ₹1.2 lakh crore for roads and highways.
  • ₹1.8 lakh crore for railways, including high-speed rail projects.
  • Increased funding for regional connectivity under UDAN.
  • ₹30,000 crore for Sagarmala Project to enhance port infrastructure.
• Urban Development:
  • ₹50,000 crore for Smart Cities Mission.
  • ₹80,000 crore for PMAY, targeting urban and rural housing.
  • ₹20,000 crore for expanding metro rail networks.
• Energy and Power:
  • ₹30,000 crore for renewable energy projects.
  • ₹40,000 crore for the Revamped Distribution Sector Scheme.
• Water and Sanitation:
  • ₹60,000 crore for Jal Jeevan Mission.
  • ₹20,000 crore for Swachh Bharat Mission.
• Digital Infrastructure:
  • ₹15,000 crore for BharatNet Project.
  • Incentives for establishing green data centers.