Budget 2024 Live_ FM Nirmala Sitharaman presents Budget 2024-25 in the Parliament(480P)
Budget 2024 Live_ FM Nirmala Sitharaman presents Budget 2024-25 in the Parliament(480P)
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00:00:00I am very happy to welcome Dr. Tulia Akshon, President of the IPU and the Chairman of the
00:00:10National Assembly of the Tanjore-Sanyuta Ganraj.
00:00:17She has come to India as a respected guest on her official journey.
00:00:25Dr. Tulia Akshon arrived in India on 19 July 2024.
00:00:32She toured Agra on 21 July 2024 and is currently sitting in a special box.
00:00:39We are very happy to see her success in India.
00:00:46We wish her success in her role as the President of the IPU.
00:00:53Through her, we congratulate the members of the Tanjore-Sanyuta Ganraj Assembly,
00:01:02the government of Tanjore and the people of Tanjore.
00:01:09We congratulate the members of the Tanjore-Sanyuta Ganraj Assembly,
00:01:16the government of Tanjore and the people of Tanjore.
00:01:21As you have been informed through Samachar Bhag-2,
00:01:27the budget speech of the Honourable Vice-Minister will be presented as a hard copy.
00:01:35After the budget speech, the Honourable Vice-Minister will receive the budget speech from the publication counter.
00:01:46You are also informed that after the Honourable Vice-Minister's speech,
00:01:52the budget speech will be available to you through the Members Portal.
00:02:00Honourable Vice-Minister, Mrs. Nirmala Sitharaman.
00:02:05Honourable Speaker, I present the budget for 2024-2025.
00:02:32Introduction.
00:02:34The people of India have reposed their faith in the government led by Honourable Prime Minister Shri Narendra Modi
00:02:42and re-elected it for a historic third term under his leadership.
00:02:53We are grateful for their support, faith and trust in our policies.
00:03:00We are determined to ensure that all Indians, regardless of religion, caste, gender and age,
00:03:09make substantial progress in realising their life goals and aspirations.
00:03:18Global context.
00:03:20The global economy, while performing better than expected, is still in the grip of policy uncertainties.
00:03:29Elevated asset prices, political uncertainties and shipping disruptions continue to pose significant downside risks
00:03:39for growth and upside risks to inflation.
00:03:44In this context, India's economic growth continues to be the shining exception
00:03:52and will remain so in the years ahead.
00:04:00India's inflation continues to be low, stable and moving towards the 4% target.
00:04:08Co-inflation, that is non-food and non-fuel, currently is 3.1%.
00:04:15Steps are being taken to ensure supplies of perishable goods reach markets adequately.
00:04:24Interim budget.
00:04:26As mentioned in the interim budget, we need to focus on four major castes,
00:04:33namely the Garib, Mahilayan, Yuva and Annadata.
00:04:40The poor, women, youth and the farmer.
00:04:45For Annadata, we announced higher minimum support prices a month ago for all major crops,
00:04:54delivering on the promise of at least a 50% margin over costs.
00:05:04Pradhan Mantri Garib Kalyan Anna Yojana was extended for five years,
00:05:11benefiting more than 80 crore people.
00:05:17Administrative actions for approval and implementation of various schemes
00:05:23announced in the interim budget are well underway.
00:05:27The required allocations have been made.
00:05:32Budget theme.
00:05:34Turning attention to the full year and beyond in this budget,
00:05:39we particularly focus on employment, skilling, MSMEs and the middle class.
00:05:47I am happy to announce the Prime Minister's package of five schemes and initiatives
00:05:55to facilitate employment, skilling and other opportunities for 4.1 crore youth
00:06:04over a five-year period with a central outlay of 2 lakh crore rupees.
00:06:13I will speak about them shortly, while more details may be seen in the annexure.
00:06:20This year, I have made a provision of 1.48 lakh crore rupees for education, employment and skilling.
00:06:34Budget priorities.
00:06:36The people have given a unique opportunity to our government
00:06:41to take the country on the path of strong development and an all-round prosperity.
00:06:47In the interim budget, we promise to present a detailed roadmap
00:06:53for our pursuit of Vikasid Bharat.
00:06:56In line with the strategy set out in the interim budget,
00:07:00this budget envisages sustained efforts on the following nine priorities
00:07:07for generating ample opportunities for all.
00:07:121. Productivity and resilience in agriculture.
00:07:172. Employment and skilling.
00:07:203. Inclusive human resource development and social justice.
00:07:264. Manufacturing and services.
00:07:305. Urban development.
00:07:336. Energy security.
00:07:367. Infrastructure.
00:07:398. Innovation, research and development.
00:07:439. Next generation reforms.
00:07:48Subsequent budgets will build on these and add more priorities and actions.
00:07:54A more detailed formulation will be carried out as part of the economic policy framework
00:08:01about which I will speak later in this speech.
00:08:07This budget details some of the specific actions to be initiated in the current year
00:08:14towards fulfilment of these priorities with potential for transformative changes.
00:08:21The budget also covers some of the previously made announcements
00:08:25with intent to strengthen them and step up their implementation
00:08:30for expediting our journey towards the goal of Vikasid Bharat.
00:08:37Priority 1. Productivity and resilience in agriculture.
00:08:43Transforming agricultural research.
00:08:47Our government will undertake a comprehensive review of the agricultural research set up
00:08:54to bring the focus on raising productivity and developing climate resilient varieties.
00:09:03Funding will be provided in challenge mode, including to the private sector.
00:09:09Domain experts, both from the government and outside, will oversee the conduct of such research.
00:09:19Release of new varieties.
00:09:21New 109 high yielding and climate resilient varieties of 32 field and horticultural crops
00:09:30will be released for cultivation by farmers.
00:09:35Natural farming.
00:09:38In the next two years, 1 crore farmers across the country will be initiated into natural farming,
00:09:48supported by certification and branding.
00:09:52Implementation will be through scientific institutions and willing gram panchayats.
00:09:5810,000 need-based bio-input resource centres will be established.
00:10:08Missions for pulses and oilseeds.
00:10:12For achieving self-sufficiency in pulses and oilseeds,
00:10:16we will strengthen their production, storage and marketing.
00:10:21As announced in the interim budget, a strategy is being put in place to achieve
00:10:26for oilseeds such as mustard, groundnut, sesame, soybean and sunflower.
00:10:36Vegetable production and supply chains.
00:10:40Large-scale clusters for vegetable production will be developed closer to major consumption centres.
00:10:48We will promote farmer-producer organisations, cooperatives
00:10:53and start-ups for vegetable supply chains, including for collection and storage and marketing.
00:11:01Digital public infrastructure for agriculture.
00:11:07Buoyed by the success of the pilot project, our government, in partnership with the states,
00:11:14will facilitate the implementation of the digital public infrastructure in agriculture
00:11:21for coverage of farmers and their lands in three years.
00:11:25During this year, digital crop survey for Karif using the DPI will be taken up in 400 districts.
00:11:35The details of 6 crore farmers and their lands will be brought into the farmer and land registries.
00:11:45Further, the issuance of Jan Samath-based Kisan Credit Cards will be enabled in five states.
00:11:57Shrimp production and export.
00:12:00Financial support for setting up a network of nucleus breeding centres for shrimp broodstocks will be provided.
00:12:10Financing for shrimp farming, processing and export will be facilitated through NABARD.
00:12:18National co-operation policy.
00:12:22Our government will bring out a national co-operation policy for systematic, orderly and all-round development of the co-operative sector.
00:12:35Fast-tracking growth of rural economy and generation of employment opportunities on a large scale will be the policy goal.
00:12:46This year, I have made a provision of 1.52 lakh crore rupees for agriculture and allied sectors.
00:12:56Priority 2. Employment and skilling.
00:13:05Employment-linked incentive.
00:13:09Our government will implement the following three schemes for employment-linked incentive as part of the Prime Minister's package.
00:13:19These will be based on enrolment in the EPFO and focus on recognition of first-time employees and support to employees and employers.
00:13:32Scheme A. First-timers.
00:13:36This scheme will provide one-month wage to all persons newly entering the workforce in all formal sectors.
00:13:49Direct benefit transfer of one-month salary in three instalments to first-time employees as registered in the EPFO will be up to 15,000 rupees.
00:14:04The eligibility limit will be a salary of 1 lakh per month.
00:14:10The scheme is expected to benefit 210 lakh youths.
00:14:18Scheme B. Job creation in manufacturing.
00:14:27This scheme will incentivise additional employment in the manufacturing sector linked to the employment of first-time employees.
00:14:38An incentive will be provided at specified scale directly both to the employee and the employer with respect to their EPFO contribution in the first four years of employment.
00:14:53The scheme is expected to benefit 30 lakh youths entering employment and their employers.
00:15:03Scheme C. Support to employers.
00:15:10This employer-focused scheme will cover additional employment in all sectors.
00:15:18All additional employment within a salary of 1 lakh per month will be counted.
00:15:26The government will reimburse to employers up to 3,000 rupees per month for two years towards their EPFO contribution for each additional employee.
00:15:39The scheme is expected to incentivise additional employment of 15 lakh persons.
00:15:48Participation of women in the workforce.
00:15:57We will facilitate higher participation of women in the workforce through setting up of working women hostels in collaboration with industry and establishing creches.
00:16:11In addition, the partnership will seek to organise women-specific skilling programmes and promotion of market access for women SHG enterprises.
00:16:25I am happy to announce a new centrally sponsored scheme as the fourth scheme under the Prime Minister's package for skilling in collaboration with state governments and industry.
00:16:4320 lakh youths will be skilled over a five-year period.
00:16:551,000 industrial training institutes will be upgraded in hub and spoke arrangements with outcome orientation.
00:17:05Course content and design will be aligned to the skill needs of industry and new courses will be introduced for emerging needs.
00:17:16Skilling loans.
00:17:18The model skill loan scheme will be revised to facilitate loans up to 7.5 lakh rupees with a guarantee from a government-promoted fund.
00:17:31This measure is expected to help 25,000 students every year.
00:17:38Education loans.
00:17:46For helping our youth who have not been eligible, for any benefit under government schemes and policies, I am happy to announce a financial support for loans up to 10 lakh rupees for higher education in domestic institutions.
00:18:08E-vouchers for this purpose will be given directly to 1 lakh students every year for annual interest subvention of 3% of the loan amount.
00:18:37Priority three.
00:18:40Inclusive human resource development and social justice.
00:18:45Saturation approach.
00:18:47Our government is committed to all-round, all-pervasive and all-inclusive development of people, particularly farmers, youth, women and the poor.
00:19:01For achieving social justice comprehensively, the saturation approach of covering all eligible people through various programs, including those for education and health, will be adopted to empower them by improving their capabilities.
00:19:20Implementation of schemes meant for supporting economic activities by craftsmen, artisans, self-help groups, scheduled caste, scheduled tribe and women entrepreneurs and street vendors such as the PM Vishwakarma, PM Svanidhi, National Livelihood Missions and Stand Up India will be stepped up.
00:19:45Purvodiya.
00:19:46The states in the eastern part of a country are rich in endowments and have strong cultural traditions.
00:19:54We will formulate a plan, Purvodiya, for the all-round development of the eastern region of the country, covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh.
00:20:11This will cover human resource development, infrastructure and generation of economic opportunities to make the region an engine to attain Vikasit Bharat.
00:20:27On the Amritsar-Kolkata Industrial Corridor, we will support development of an industrial node at Gaya.
00:20:36This corridor will catalyze industrial development of the eastern region.
00:20:43The industrial node at Gaya will also be a good model for developing our ancient centres of cultural importance into future centres of modern economy.
00:20:58This model shall showcase Vikas-B, Virasat-B in our growth trajectory.
00:21:08We will also support development of road connectivity projects, namely 1. Patnapurnia Expressway, 2. Buxar-Bagalpur Expressway, 3. Bodh Gaya-Rajgir, Vaishali and Darbhanga Spurs
00:21:29and 4. Additional two-lane bridge over river Ganga at Buxar, at a total cost of 26,000 crore rupees.
00:21:41Power projects, including setting up of a new 2,400 megawatt power plant at Pirpenti will be taken up at a cost of 21,400 crore rupees.
00:22:00New airports, medical colleges and sports infrastructure in Bihar will be constructed.
00:22:11An additional allocation to support capital investments will be provided.
00:22:20The requests of Bihar government for external assistance from multilateral development banks will be expedited.
00:22:29Andhra Pradesh Reorganisation Act
00:22:40Our government has made concerted efforts to fulfil the commitments in Andhra Pradesh Reorganisation Act,
00:22:49recognising the state's need for capital, we will facilitate special financial support through multilateral development agencies.
00:23:11In the current financial year, 15,000 crore rupees will be arranged with additional amounts in future years.
00:23:26Our government is fully committed to financing and early completion of the Polavaram irrigation project,
00:23:43which is the lifeline for Andhra Pradesh and its farmers.
00:23:52This will facilitate our country's food security as well.
00:23:57Under the Andhra Pradesh Reorganisation Act, for promoting industrial development,
00:24:09funds will be provided for essential infrastructure, such as water, power, railways and roads,
00:24:18in Kopparthi node on the Vishagapatnam-Chennai Industrial Corridor and Varavakal node on the Hyderabad-Bengaluru Industrial Corridor.
00:24:32An additional allocation will be provided this year towards capital investment for economic growth.
00:24:42Grants for backward regions of Rayalaseema, Prakasham, North Coastal Andhra, as stated in the Act, will be provided.
00:24:56Under the PM Awas Yojana, three crore additional houses in rural and urban areas in the country have been announced,
00:25:13for which the necessary allocations are being made.
00:25:18For promoting women-led development, the budget carries an allocation of more than three lakh crore for schemes benefiting women and girls.
00:25:34This signals our government's commitment for enhancing women's role in economic development.
00:25:45For improving the socio-economic condition of tribal communities,
00:25:54we will launch the Pradhan Mantri Janjatiya Unnath Gram Abhiyan
00:25:59by adopting saturation coverage for tribal families in tribal-majority villages and aspirational districts.
00:26:08This will cover 63,000 villages, benefiting five crore tribal people.
00:26:19Bank branches in north-eastern region.
00:26:23More than 100 branches of India Post Payment Bank will be set up in the north-east region to expand the banking services.
00:26:33This year, I have made a provision of 2.66 lakh crore rupees for rural development, including rural infrastructure.
00:26:47Priority four.
00:26:50Manufacturing and services support for promotion of MSMEs.
00:26:57This budget provides special attention to MSMEs and manufacturing, particularly labour-intensive manufacturing.
00:27:07We have formulated a package covering financing, regulatory changes and technology support for MSMEs
00:27:15to help them grow and also compete globally, as mentioned in the interim budget.
00:27:21I am happy to announce the following specific measures.
00:27:25Credit guarantee scheme for MSMEs in the manufacturing sector.
00:27:30For facilitating term loans to MSMEs for purchase of machinery and equipment without collateral or third-party guarantee,
00:27:42a credit guarantee scheme will be introduced.
00:27:46The scheme will operate on pooling of credit risks of such MSMEs.
00:27:52A separately constituted self-financing guarantee fund will provide to each applicant guarantee cover up to 100 crore rupees,
00:28:03while the loan amount may be larger.
00:28:07The borrower will have to provide an upfront guarantee fee and an annual guarantee fee on the reducing loan balance.
00:28:18New assessment model for MSME credit.
00:28:22Public sector banks will build their own in-house capability to assess MSMEs for credit instead of relying on external assessment.
00:28:33They will also take a lead in developing or getting developed a new credit assessment model based on the scoring of digital footprints of the MSMEs in the economy.
00:28:47This is expected to be a significant improvement over the traditional assessment of credit eligibility based only on asset or turnover criteria.
00:28:59That will also cover MSMEs without a formal accounting system.
00:29:06Credit support to MSMEs during stress period.
00:29:10I am happy to announce a new mechanism for facilitating continuation of bank credit to MSMEs during their stress period,
00:29:21while being in special mention account, SMA account, SMA stage.
00:29:27For reasons beyond their control, MSMEs need credit to continue their business and to avoid getting into the NPA stage.
00:29:37Credit availability will be supported through a guarantee from a government promoted fund.
00:29:45Mudra loans.
00:29:47The limit of mudra loans will be enhanced to 20 lakh from the current 10 lakh for those entrepreneurs who have availed and successfully repaid previous loans under the Tarun category.
00:30:04Enhanced scope for mandatory onboarding in treads.
00:30:09For facilitating MSMEs to unlock their working capital by converting their trade receivables into cash,
00:30:17I propose to reduce the turnover threshold of buyers for mandatory onboarding on the treads platform from Rs 500 crore to Rs 250 crore.
00:30:32This measure will bring 22 more CPSCs and 7,000 more companies onto the platform.
00:30:42Medium enterprises will also be included in the scope of the suppliers.
00:30:48SIDBI branches in MSME clusters.
00:30:53SIDBI will open new branches to expand its reach to serve all major MSME clusters within three years and provide direct credit to them.
00:31:06With the opening of 24 such branches this year, the service coverage will expand to 168 out of 242 major clusters.
00:31:23MSME units for food irradiation quality and safety testing.
00:31:29Financial support for setting up of 50 multi-product food irradiation units in the MSME sector will be provided.
00:31:41Setting up of 100 food quality and safety testing labs with NABL accreditation will be facilitated.
00:31:51E-commerce export hubs.
00:31:54To enable MSMEs and traditional artisans to send their products in international markets,
00:32:01e-commerce export hubs will be set up in public-private partnership mode.
00:32:07These hubs, under a seamless regulatory and logistic framework, will facilitate trade and export-related services under one roof.
00:32:20Measures for promotion of manufacturing and services.
00:32:24Internship in top companies.
00:32:27As the fifth scheme under Prime Minister's package, our government will launch a comprehensive scheme for providing internship opportunities in 500 top companies to one crore youth in five years.
00:32:47They will gain exposure for 12 months to real-life business environment, varied professions and employment opportunities.
00:33:04Internship allowance of Rs 5,000 per month along with one-time assistance of Rs 6,000 will be provided.
00:33:17Companies will be expected to bear the training cost and 10% of their internship cost from their CSR funds.
00:33:26Industrial parks.
00:33:30Our government will facilitate development of investment-ready, plug-and-play industrial parks with complete infrastructure in or near 100 cities in partnership with the states and private sector by better using town planning schemes.
00:33:49Twelve industrial parks under the National Industrial Corridor Development Programme also will be sanctioned.
00:34:20Rental housing with dormitory-type accommodation for industrial workers will be facilitated in PPP mode with VGF support and commitment from Anchor Industries.
00:34:48Shipping industry.
00:34:50Ownership, leasing and flagging reforms will be implemented to improve the share of Indian shipping industry and generate more employment.
00:35:01Critical mineral mission.
00:35:05We will set up a critical mineral mission for domestic production, recycling of critical minerals and overseas acquisition of critical mineral assets.
00:35:18Its mandate will include technology development, skilled workforce, extended producer responsibility framework and a suitable financing mechanism.
00:35:32Offshore mining of minerals.
00:35:35Our government will launch the auction of the first tranche of offshore blocks for mining, building on the exploration already carried out.
00:35:46Digital public infrastructure applications.
00:35:50Turning to the services sector, I propose development of DPI applications at population scale for productivity gains, business opportunities and innovation by the private sector.
00:36:04These are planned in the areas of credit, e-commerce, education, health, law and justice, logistics, MSME service delivery and urban governance.
00:36:18Integrated technology platform for IBC ecosystem.
00:36:22An integrated technology platform will be set up for improving the outcomes under the Insolvency Bankruptcy Code for achieving consistency, transparency, timely processing and better oversight for all stakeholders.
00:36:39Voluntary closure of LLPs.
00:36:42The services of the Centre for Processing Accelerated Corporate Exit, CPACE, will be extended for voluntary closure of LLPs to reduce the closure times.
00:36:57National company law tribunals.
00:37:01The IBC has resolved more than 1,000 companies resulting in direct recovery of 3.3 lakh crore to creditors.
00:37:123.3 lakh crore rupees to creditors.
00:37:16In addition, 28,000 cases involving over 10 lakh crore rupees have been disposed of even prior to admission.
00:37:27Appropriate changes to the IBC, reforms and strengthening of the tribunal and appellate tribunals will be initiated to speed up insolvency resolution.
00:37:39Additional tribunals will be established.
00:37:42Out of those, some will be notified to decide cases exclusively under the Companies Act.
00:37:49Debt recovery.
00:37:52Steps for reforming and strengthening debt recovery tribunals will be taken.
00:37:57Additional tribunals will be established to speed up recovery.
00:38:03Priority five. Urban development. Cities as growth hubs.
00:38:09Working with states, our government will facilitate development of cities as growth hubs.
00:38:15This will be achieved through economic and transit planning and orderly development of peri-urban areas utilising town planning schemes.
00:38:26Creative redevelopment of cities.
00:38:29For creative brownfield redevelopment of existing cities with a transformative impact, our government will formulate a framework for enabling policies, market-based mechanisms and regulation.
00:38:44Transit-oriented development.
00:38:47Transit-oriented development plans for 14 large cities with a population above 30 lakh will be formulated along with an implementation and financing strategy.
00:39:02Urban housing.
00:39:05Under the PM Awas Yojana, Urban 2.0, housing needs of one crore urban poor and middle-class families will be addressed with an investment of 10 lakh crore rupees.
00:39:23This will include the central assistance of 2.2 lakh crore rupees in the next five years.
00:39:32The provision of interest subsidy to facilitate loans at affordable rates is also envisaged.
00:39:40In addition, enabling policies and regulations for efficient and transparent rental housing markets with enhanced availability will also be put in place.
00:39:56Water supply and sanitation.
00:39:59In partnership with state governments and multilateral development banks, we will promote water supply, sewage treatments and solid waste management projects and services for 100 large cities through bankable projects.
00:40:18These projects will also envisage use of treated water for irrigation and filling up of tanks in nearby areas.
00:40:28Street markets.
00:40:30Building on the success of PM Svanidhi's scheme in transforming the lives of street vendors, our government envisions a scheme to support each year.
00:40:45Over the next five years, the development of 100 weekly huts or street food hubs in select cities.
00:40:57Stamp duty.
00:41:00We will encourage states which continue to charge high stamp duty to moderate the rates for all and also consider further lowering duties for properties purchased by women.
00:41:15This reform will be made an essential component of urban development schemes.
00:41:23Priority six. Energy security. Energy transition.
00:41:29In the interim budget, I had announced our strategy to sustain high and more resource efficient economic growth along with the energy security in terms of availability, accessibility and affordability.
00:41:45We will bring out a policy document on appropriate energy transition pathways that balances the imperatives of employment, growth and environmental sustainability.
00:41:59PM Suryagar Muft Bijli Yojana.
00:42:07In line with the announcement in the interim budget.
00:42:15PM Suryagar Muft Bijli Yojana has been launched to install rooftop solar plants to enable to enable one crore households obtain free electricity up to 300 units every month.
00:42:35The scheme has generated remarkable response with more than 1.28 crore registrations and 14 lakh applications and we will further encourage it.
00:42:50Pumped storage policy. A policy for promoting pumped storage projects will be brought out for electricity storage and facilitating smooth integration of the growing share of renewable energy with its variable and intermittent nature in the overall energy mix.
00:43:12Research and development of small and modular nuclear reactors. Nuclear energy is expected to form a very significant part of the energy mix for Vikasidh Bharat.
00:43:28Towards that pursuit, our government will partner with the private sector for one, setting up Bharat small reactors. Two, research and development of Bharat small modular reactor. And three, research and development of newer technologies for nuclear energy.
00:43:52The R&D funding announced in the interim budget will be made available for this sector also. Advanced ultra-supercritical thermal power plants. The development of indigenous technology for advanced ultra-supercritical thermal power plants with much higher efficiency has been completed.
00:44:20A joint venture between NTPC and BHEL will set up a full-scale 800 megawatt commercial plant using AUSC technology. The government will provide the required fiscal support.
00:44:41Moving forward, development of indigenous capacity for the production of high-grade steel and other advanced metallurgy materials for these plants will result in strong spin-off benefits for the economy.
00:44:58Roadmap for hard-to-abate industries. A roadmap for moving the hard-to-abate industries from energy efficiency targets to emission targets will be formulated. Appropriate regulations for transition of these industries from the current perform, achieve, and trade mode to Indian carbon market mode will be put in place.
00:45:26Support to traditional micro and small industries. An investment-grade energy audit of traditional micro and small industries in 60 clusters, including brass and ceramic, will be facilitated. Financial support will be provided for shifting them to cleaner forms of energy and implementation of energy efficiency measures.
00:45:56The scheme will be replicated in another 100 clusters in the next phase.
00:46:03Priority 7. Infrastructure investment by Central Government. Significant investment the Central Government has made over the years in building and improving infrastructure has had a strong multiplier effect on the economy.
00:46:25We will endeavour to maintain strong fiscal support for infrastructure over the next five years in conjunction with imperatives of other priorities and fiscal consolidation.
00:46:39This year I have provided Rs 11,111 crore for capital expenditure. This would be 3.4% of our GDP.
00:46:56Infrastructure investment by state governments. We will encourage states to provide support of similar scale for infrastructure, subject to their development priorities.
00:47:09A provision of Rs 1.5 lakh crore for long-term interest-free loans have been made this year also to support the states in their resource allocation.
00:47:23Private investment in infrastructure. Investment in infrastructure by private sector will be promoted through viability gap funding and enabling policies and regulations. A market-based financing framework will be brought out.
00:47:41Pradhan Mantri Gram Sadak Yojana. Phase 4 of the PMGSY will be launched to provide all-weather connectivity to 25,000 rural habitations which have become eligible in view of their population increase.
00:48:04Irrigation and flood mitigation. Bihar has frequently suffered from floods, many of them originating outside the country. Plans to build flood control structures in Nepal are yet to progress.
00:48:24Our government, through the Accelerated Irrigation Benefit Programme and other sources, will provide financial support for projects with estimated cost of Rs 11,500 crore.
00:48:40Such as the Kosi-Mechi Intrastate Link and 20 other ongoing and new schemes including barrages, river pollution abatement and irrigation projects. In addition, survey and investigation of Kosi-related flood mitigation and irrigation projects will be undertaken.
00:49:11Assam grapples with floods every year by the Brahmaputra River and its tributaries originating outside India. We will provide assistance to Assam for flood management and related projects.
00:49:31Himachal Pradesh suffered extensive losses due to floods last year. Our government will provide assistance to the state for reconstruction and rehabilitation through multilateral development assistance.
00:50:01Uttarakhand too suffered losses due to cloudbursts and massive landslides. We will provide assistance to the state. Recently, Sikkim witnessed devastating flash floods and landslides that wreaked havoc across the state. Our government will provide assistance to the state.
00:50:32Tourism has always been a part of our civilization. Our efforts in positioning India as a global tourist destination will also create jobs, stimulate investments and unlock economic opportunities for other sectors.
00:50:58In addition to the measures outlined in the interim budget, I propose the following measures. Vishnupath Temple at Gaya and Mahabodhi Temple at Govgaya in Bihar are of immense spiritual significance.
00:51:19Comprehensive development of Vishnupath Temple Corridor and Mahabodhi Temple Corridor will be supported, modeled on the successful Kashi-Vishwanath Temple Corridor to transform them into world-class pilgrim and tourist destinations.
00:51:43Rajgir holds immense religious significance for Hindus, Buddhists and Jains. The 20th Tirthankara Muni Suvaratha Temple in the Jain Temple Complex is ancient.
00:52:02The Sapta Rishi or the Seven Hot Springs form a warm-water Brahmkund that is sacred. A comprehensive development initiative for Rajgir will be undertaken.
00:52:14Our government will support the development of Nalanda as a tourist center besides reviving Nalanda University to its glorious stature.
00:52:29Odisha's scenic beauty, temples, monuments, craftsmanship, wildlife sanctuaries, natural landscapes and pristine beaches make it an ultimate tourism destination.
00:52:52Our government will provide assistance for their development to Odisha as well.
00:52:58We will operationalize the Anusandhan National Research Fund for basic research and prototype development.
00:53:18Further, we will set up a mechanism for spurring private sector-driven research and innovation at commercial scale with a financing pool of Rs 1 lakh crore in line with the announcement in the interim budget.
00:53:35With our continued emphasis on expanding the space economy by five times in the next ten years, a venture capital fund of Rs 1,000 crore will be set up.
00:53:51We will formulate an economic policy framework to delineate the overarching approach to economic development and set the scope of the next generation of reforms for facilitating employment opportunities and sustaining high growth.
00:54:16Our government will initiate and incentivize reforms for improving productivity of factors of production and facilitating markets and sectors to become more efficient.
00:54:31These reforms will cover all factors of production, namely land, labor, capital and entrepreneurship, and technology as an enabler of improving total factor productivity and bridging inequality.
00:54:48Effective implementation of several of these reforms requires collaboration between the Centre and the States and building consensus as development of the country lies in development of the States.
00:55:02For promoting competitive federalism and incentivizing States for faster implementation of reforms, I propose to earmark a significant part of the 50-year interest-free loan.
00:55:16Working with the States, we will initiate the following reforms. Land-related reforms and actions, both in the rural and urban areas, will cover land administration, planning and management, urban planning usage and building bylaws.
00:55:44These will be incentivized for completion within the next three years through appropriate fiscal support.
00:55:52Rural land-related actions will include 1. Assignment of unique land parcel identification number, ULPIN, or Bhu Aadhaar for all lands.
00:56:082. Digitization of pedestal maps.
00:56:123. Survey of map subdivisions as per current ownership.
00:56:194. Establishment of land registry.
00:56:225. Linking to the farmer's registry.
00:56:25These actions will also facilitate credit flow and other agricultural services.
00:56:33Urban land-related actions. Land records in urban areas will be digitized with GIS mapping.
00:56:43An IT-based system for property record administration, updating and tax administration will be established.
00:56:52These will also facilitate improving the financial position of urban local bodies.
00:56:59Labour-related reforms. Services to labour.
00:57:03Our government will facilitate the provision of a wide array of services to labour, including those for employment and skilling.
00:57:12A comprehensive integration of e-Shrump portal with other portals will facilitate such one-stop solution.
00:57:22Open architecture databases for the rapidly changing labour market, skilled requirements and available job roles
00:57:31and a mechanism to connect job aspirants with potential employers and skilled providers will be covered in these services.
00:57:42Shrump Suvida and Samadhan portal will be revamped to enhance ease of compliance for industry and trade.
00:57:56Capital and entrepreneurship-related reforms. Financial sector vision and strategy.
00:58:03For meeting financing needs of the economy, our government will bring out a financial sector vision and strategy document
00:58:13to prepare the sector in terms of size, capacity and skills.
00:58:19This will set the agenda for the next five years and guide the work of the government, regulators, financial institutions and market participants.
00:58:29Taxonomy for climate finance.
00:58:33We will develop taxonomy for climate finance for enhancing the availability of capital for climate adaptation and mitigation.
00:58:42This will support achievement of the country's climate commitments and green transition.
00:58:49Variable capital company structure.
00:58:53We will seek the required legislative approval for providing an efficient and flexible mode for financing leasing of aircrafts and ships
00:59:04and pooled funds of private equity through a variable company structure.
00:59:10Foreign direct investment and overseas investment.
00:59:14The rules and regulations for foreign direct investment and overseas investments will be simplified to
00:59:221. Facilitate foreign direct investments.
00:59:262. Nudge prioritization.
00:59:293. Promote opportunities for using Indian rupee as a currency for overseas investment.
00:59:38NPS Vatsalya.
00:59:41A plan for contribution by parents and guardians for minors will be started.
00:59:50On attaining the age of majority, the plan can be converted seamlessly into a normal NPS account.
00:59:59Use of technology.
01:00:02We have successfully used technology for improving productivity and bridging inequality in our economy during the past 10 years.
01:00:12Public investment in digital infrastructure and innovations by the private sector have helped in improving access of all citizens,
01:00:22particularly the common people, to market resources, education, health and services.
01:00:28We will step up adoption of technology towards digitalization of the economy.
01:00:35Ease of doing business.
01:00:37For enhancing ease of doing business, we are already working on the Jan Vishwas Bill 2.0.
01:00:44Further, states will be incentivized for implementation of the business reforms, action plans and digitalization.
01:00:55Data and statistics.
01:00:57For improving data governance, collection, processing and management of data and statistics,
01:01:04different sectoral databases, including those established under the Digital India Mission,
01:01:10will be utilized with active use of technology tools.
01:01:17New pension scheme.
01:01:19The committee to review the NPS has made considerable progress in its work.
01:01:26I am happy that the staff side of the National Council of the Joint Consultative Missionary for Central Government Employees
01:01:40has taken a constructive approach.
01:01:43A solution will be evolved which addresses the relevant issues while maintaining fiscal prudence to protect the common citizens.
01:01:53Budget estimates for 2024-25.
01:01:57For the year 2024-25, total receipts other than borrowings and the total expenditure are estimated at 32.07 lakh crore rupees
01:02:11and 48.21 lakh crore rupees respectively.
01:02:17The net tax receipts are estimated at 25.83 lakh crore rupees.
01:02:23The fiscal deficit is estimated at 4.9% of the GDP.
01:02:31The gross and the net market borrowings through dated securities during 2024-25
01:02:40are estimated at 14.01 lakh crore rupees and 11.63 lakh crore rupees respectively.
01:02:49Both will be less than that in 2023-24.
01:02:54The fiscal consolidation path announced by me in 2021 has served our economy very well
01:03:02and we aim to reach the deficit below 4.5% next year.
01:03:07The government is committed to staying the course.
01:03:11From 2026-27 onwards, our endeavour will be to keep the fiscal deficit each year
01:03:19such that the central government's debt will be on a declining path as percentage of GDP.
01:03:27I will now move to part B.
01:03:36Indirect taxes.
01:03:38Sir, I start with GST.
01:03:41It has decreased tax incidence on the common man,
01:03:46reduced compliance burden and logistics cost for trade and industry
01:03:51and enhanced revenues of the central and the state governments.
01:03:56It is a success of vast proportions.
01:04:00To multiply the benefits of GST, we will strive to further simplify and rationalise the tax structure
01:04:08and endeavour to expand it to the remaining sectors.
01:04:12My proposals for customs duties intend to support domestic manufacturing,
01:04:21deepen local value addition, promote export competitiveness
01:04:26and simplify taxation while keeping the interest of the general public and consumers surmount.
01:04:33In Budget 2022-23, we reduce the number of customs duty rates.
01:04:39I propose to undertake a comprehensive review of the rate structure over the next six months
01:04:46to rationalise and simplify it for ease of trade, removal of duty inversion and reduction of disputes.
01:04:54I shall now take up sector-specific customs duty proposals.
01:04:59Medicine and medical equipments.
01:05:02To provide relief to cancer patients.
01:05:05I propose to fully exempt three more medicines from customs duties.
01:05:20I also propose changes in the BCD on X-ray tubes and flat panel detectors
01:05:27for use in medical X-ray machines under the phased manufacturing programme
01:05:33so as to synchronise them with the domestic capacity addition.
01:05:41Mobile phone and related parts.
01:05:44With a three-fold increase in domestic production
01:05:47and almost a hundred-fold jump in exports of mobile phones over the last six years,
01:05:53the Indian mobile industry has matured.
01:05:57In the interest of consumers, I now propose to reduce the BCD on mobile phone,
01:06:04mobile PCBA and mobile charger to 15%.
01:06:11Critical minerals.
01:06:13Minerals such as lithium, copper, cobalt and rare earth elements
01:06:19are critical for sectors like nuclear energy, renewable energy,
01:06:24space, defence, telecommunications and high-tech electronics.
01:06:30I propose to fully exempt customs duties on 25 critical minerals
01:06:36and reduce BCD on two of them.
01:06:41This will provide a major fillip to the processing and refining of such minerals
01:06:47and help secure their availability for these strategic and important sectors.
01:06:53Solar energy.
01:06:55Energy transition is critical in the fight against climate change.
01:07:00To support energy transition, I propose to expand the list of exempted capital goods
01:07:07for use in the manufacture of solar cells and panels in the country.
01:07:13Further, in view of sufficient domestic manufacturing capacity
01:07:18of solar gas, glass and tinned copper interconnect,
01:07:23I propose not to extend the exemption of custom duties provided to them.
01:07:30Marine products.
01:07:32India's seafood exports in the last financial year
01:07:36touched an all-time high of more than 60,000 crores of rupees.
01:07:42Frozen shrimp accounted for about two-thirds of these exports.
01:07:47To enhance their competitiveness, I propose to reduce BCD on certain broodstock,
01:07:55polychaete worms, shrimp and fish feed to 5%.
01:08:01I also propose to exempt customs duty on various inputs for manufacture of shrimp and fish feed.
01:08:10Leather and textile.
01:08:12Similarly, to enhance the competitiveness of exports in the leather and textile sectors,
01:08:18I propose to reduce BCD on real down-filling material from duck or goose.
01:08:26I am also making additions to the list of exempted goods
01:08:30for manufacture of leather and textile garments, footwear and other leather articles for export.
01:08:38To rectify inversion in duty,
01:08:41I propose to reduce BCD, subject to conditions,
01:08:45on methylene diphenyl diisocyanate, MDI,
01:08:51for manufacture of spandex yarn from 7.5% to 5%.
01:08:57Furthermore, the export duty structure on raw hides, skin and leather
01:09:04is proposed to be simplified and rationalised.
01:09:08Precious metals.
01:09:10To enhance domestic value addition in gold and precious metal jewellery in the country,
01:09:16I propose to reduce customs duties on gold and silver to 6%
01:09:22and that of platinum to 6.4%.
01:09:27Other metals.
01:09:29Steel and copper are important raw materials.
01:09:33To reduce their cost of production,
01:09:35I propose to remove the BCD on ferronickel and blister copper.
01:09:40I am also continuing with nil BCD on ferrous crap and nickel cathode
01:09:47and concessional BCD of 2.5% on copper scrap.
01:09:53Electronics.
01:09:54To increase value addition in the domestic electronics industry,
01:09:58I propose to remove the BCD, subject to conditions,
01:10:02on oxygen-free copper for manufacture of resistors.
01:10:07I also propose to exempt certain parts for manufacture of connectors.
01:10:13Chemicals and petrochemicals.
01:10:15To support existing and new capacities in the pipeline,
01:10:19I propose to increase the BCD on ammonium nitrate from 7.5% to 10%.
01:10:28Plastics.
01:10:29PVC flex banners are non-biodegradable and hazardous for environment and health.
01:10:38To curb their imports, I propose to raise the BCD on them from 10% to 25%.
01:10:45Telecommunication equipment.
01:10:47To incentivise domestic manufacturing,
01:10:51I propose to increase the BCD from 10% to 15% on PCBA of specified telecom equipment.
01:11:02Trade facilitation.
01:11:04To promote domestic aviation and boat and ship MRO,
01:11:09I propose to extend the period for export of goods imported for repairs
01:11:17from six months to one year.
01:11:19I'll read that again.
01:11:21To promote domestic aviation and boat and ship maintenance, repair and operations,
01:11:28I propose to extend the period for export of goods imported for repairs
01:11:37from six months to one year.
01:11:40In the same vein, I propose to extend the time limit for re-import of goods
01:11:46for repairs under warranty from three to five years.
01:11:51I now move to direct taxes.
01:11:54We will continue our efforts to simplify taxes, improve taxpayer services,
01:12:00provide tax certainty and reduce litigation,
01:12:04while enhancing revenues for funding the development and welfare schemes of the government.
01:12:10It has been our endeavour to simplify taxation.
01:12:15We have taken a number of measures in the last few years,
01:12:18including introduction of simplified tax regimes
01:12:22without exemptions and deductions for corporate tax and for personal income tax.
01:12:28This has been appreciated by taxpayers.
01:12:3158% of corporate tax came from the simplified tax regime in the financial year 2022-23.
01:12:40Similarly, as per data available till now, for the last fiscal,
01:12:45more than two-thirds have availed the new personal income tax regime.
01:12:51Comprehensive review of the Income Tax Act.
01:12:55I am now announcing a comprehensive review of the Income Tax Act 1961.
01:13:02The purpose is to make the Act concise, lucid, easy to read and understand.
01:13:09This will reduce disputes and litigation, thereby providing tax certainty to the taxpayers.
01:13:17I will also bring down the demand embroiled in litigation.
01:13:21It is proposed to be completed in six months.
01:13:25A beginning is being made in the Finance Bill
01:13:28by simplifying the tax regime for charities,
01:13:31tedious rate structures,
01:13:33provisions of reassessment and search provisions,
01:13:36and capital gains taxation.
01:13:40Simplification for charities and tedious.
01:13:44Two tax exemption regimes.
01:13:47The two tax exemption regimes for charities are proposed to be merged into one.
01:13:55The 5% tedious rate on many payments is being merged into the 2% tedious rate
01:14:02and the 20% tedious rate on repurchase of units by mutual funds or UTI is being withdrawn.
01:14:13Tedious rate on e-commerce operators is proposed to be reduced from 1% to 0.1%.
01:14:22Moreover, credit of TCS is proposed to be given in the tedious to be deducted on salary.
01:14:30Further, I propose to decriminalise delay for payment of tedious
01:14:36up to the due date of filing statement for the same.
01:14:42I also plan to provide a standard operating procedure for tedious defaults
01:14:49and simplify and rationalise the compounding guidelines for such defaults.
01:14:56Simplification of reassessment.
01:14:59I propose to thoroughly simplify the provisions for reopening and reassessment.
01:15:06An assessment hereinafter can be reopened beyond three years from the end of the assessment year
01:15:14only if the escaped income is 50 lakh rupees or more
01:15:20up to a maximum period of five years from the end of the assessment year.
01:15:26Even in search cases, a time limit of six years before the year of the search
01:15:32as against the existing time limit of ten years is being proposed.
01:15:38This will reduce tax uncertainty and disputes.
01:15:43Simplification and rationalisation of capital gains.
01:15:48Capital gains taxation is also proposed to be hugely simplified.
01:15:55Short term gains on certain financial assets shall henceforth attract a tax rate of 20%
01:16:04while that on all other financial assets and all non-financial assets
01:16:11shall continue to attract the applicable tax rate.
01:16:15Long term gains on all financial and non-financial assets
01:16:20on the other hand will attract a tax rate of 12.5%.
01:16:25For the benefit of the lower and the middle income classes
01:16:29I propose to increase the limit of exemption of capital gains on certain financial assets
01:16:38to 1.25 lakh rupees per year.
01:16:43Listed financial assets held for more than a year will be classified as long term
01:16:51while unlisted financial assets and all non-financial assets
01:16:56will have to be held for at least two years to be classified as long term.
01:17:03Unlisted bonds and debentures, debt mutual funds and market linked debentures
01:17:09irrespective of holding period however will attract tax on capital gains at applicable rates.
01:17:17Taxpayer services.
01:17:19All the major taxpayer services under GST and most services under customs and income tax
01:17:26have been digitalised.
01:17:29All remaining services of customs and income tax including rectification and order giving effect
01:17:37to appellate orders shall be digitalised and made paperless over the next two years.
01:17:44Litigation and appeals.
01:17:47While our concerted efforts to reduce pendency of appeals at various appellate fora
01:17:53are beginning to show good results it will continue to engage our highest attention.
01:18:00To dispose of the backlog of first appeals I plan to deploy more officers
01:18:07to hear and decide such appeals especially those with large tax effect.
01:18:15For resolution of certain income tax disputes pending an appeal
01:18:20I am also proposing Vivaat Se Vishwa scheme 2024.
01:18:25Further I propose to increase monetary limits for filing appeals related to direct taxes,
01:18:34excise and service tax in the tax tribunals, high courts and supreme court
01:18:40to 60 lakh rupees, 2 crore rupees and 5 crore respectively
01:18:47With a view to reduce litigation and provide certainty in international taxation
01:18:53we will expand the scope of safe harbour rules and make them more attractive.
01:19:00We will also streamline the transfer pricing assessment procedure.
01:19:06Employment and investment.
01:19:09I have a few proposals to promote investment and foster employment.
01:19:15First of all to bolster the Indian start-up ecosystem,
01:19:20boost the entrepreneurial spirit and to support innovation
01:19:27I propose to abolish the so-called angel tax for all classes of investors.
01:19:37Second, there is tremendous potential for cruise tourism in India.
01:19:43To give a fillip to this employment generating industry
01:19:47I am proposing a simpler tax regime for foreign shipping companies
01:19:52operating domestic cruises in the country.
01:20:01India is a world leader in the diamond cutting and polishing industry
01:20:06which employs a large number of skilled workers.
01:20:09To further promote the development of this sector
01:20:12we would provide for safe harbour rates for foreign mining companies
01:20:17selling raw diamonds in the country.
01:20:20Fourth, to attract foreign capital for our development needs
01:20:25I propose to reduce the corporate tax rate on foreign companies from 40 to 35%.
01:20:32Deepening the tax base.
01:20:36I have a couple of proposals for deepening the tax base.
01:20:39First, security transaction tax on futures and options of securities
01:20:47is proposed to be increased to 0.02% and 0.1% respectively.
01:20:54Second, for reasons of equity I propose to tax income received
01:21:00on buyback of shares in the hands of recipients.
01:21:05Other proposals.
01:21:07To improve social security benefits
01:21:10deduction of expenditure by employers towards NPS
01:21:14is proposed to be increased from 10 to 14% of the employee's salary.
01:21:20Similarly, deduction of this expenditure up to 14% of salary
01:21:27from the income of employees in private sector, public sector banks and undertakings
01:21:33opting for the new tax regime is proposed to be provided.
01:21:38Indian professionals working in multinationals
01:21:42get ESOPs and invest in social security schemes
01:21:47and other moveable assets abroad.
01:21:50Non-reporting of such small foreign assets
01:21:53has penal consequences under the Black Money Act.
01:21:57Such non-reporting of moveable assets
01:22:00up to 20 lakh rupees is proposed to be depenalised.
01:22:06Other major proposals in the Finance Bill relate to
01:22:11withdrawal of equalisation levy of 2%
01:22:15expansion of tax benefits to certain funds and entities in IFSCs
01:22:23and immunity from penalty and prosecution
01:22:27to Benamidar on full and true disclosure
01:22:31so as to improve conviction under the Benami Transaction Prohibition Act 1988.
01:22:42Coming to personal income tax rates
01:22:45I have two announcements to make for those opting for the new tax regime.
01:22:51First, the standard deduction for salaried employees
01:22:56is proposed to be increased from 50,000 to 75,000 rupees.
01:23:06Similarly, deduction on family pension for pensioners
01:23:12is proposed to be enhanced from 15,000 to 25,000 rupees.
01:23:18This will provide relief to about 4 crore salaried individuals and pensioners.
01:23:34Second, in the new tax regime
01:23:37the tax rate structure is proposed to be revised as follows
01:23:430 to 3 lakh rupees, nil
01:23:463 to 7 lakh rupees, 5%
01:23:507 to 10 lakh rupees, 10%
01:23:5410 to 12 lakh rupees, 15%
01:23:5712 to 15 lakh rupees, 20%
01:24:00and above 15 lakh rupees, 30%.
01:24:04As a result of these changes
01:24:06a salaried employee in the new tax regime
01:24:10stands to save up to 17,500 rupees in income tax.
01:24:23Apart from these, I am also making some other changes as given in the annexure.
01:24:29As a result of these proposals
01:24:31revenue of about 37,000 crore
01:24:37that is 29,000 crore in direct taxes
01:24:40and 8,000 crore in indirect taxes
01:24:43will be foregone
01:24:45while revenue of about 30,000 crore rupees
01:24:48will be additionally mobilised.
01:24:50Thus the total revenue foregone is about 7,000 crores annually.
01:24:56Mr Speaker, Sir, with this I commend the budget to this August House.
01:25:02Jai Hind.
01:25:08Item No. 2
01:25:13Item No. 2
01:25:27Sir, with your permission
01:25:29I rise to lay on the table the following statements
01:25:33under Section 3 of the Fiscal Responsibility and Budget Management
01:25:38FRBM Act 2003
01:25:41Medium Term Fiscal Policy
01:25:43Come Fiscal Policy Strategy Statement
01:25:46and Macroeconomic Framework Statement.
01:25:50Item No. 3
01:25:52Sir, with your permission
01:25:54I rise to move for leave to introduce
01:25:57the Finance No. 2 Bill 2024.
01:26:03The question is that
01:26:05permission be granted to establish the bill completely.
01:26:09Those who are in favour of it
01:26:11Yes
01:26:13Those who are against it
01:26:14No
01:26:16In my opinion, the decision is given to those who are in favour.
01:26:22Prime Minister, establish the bill completely.
01:26:26Sir, I introduce the bill.
01:26:30Item No. 4
01:26:33The Union Territory of Jammu and Kashmir Budget
01:26:36Sir, I rise to present a statement
01:26:38Hindi and English versions
01:26:40of the estimated receipts and expenditure
01:26:42of the Union Territory of Jammu and Kashmir
01:26:44for the year 2024-25.
01:26:47The proceedings of the meeting
01:26:49are scheduled for tomorrow, Wednesday, July 24, 2024
01:26:54at 11 o'clock.
01:27:03For more information visit www.dfid.gov.uk