IN a strong reiteration of Prime Minister Narendra Modi’s commitment to lay the foundation for Viksit Bharat by 2047, Finance Minister Nirmala Sitharaman has set out a clear-cut direction for the country for the next five years, and beyond.
The Union Budget 2024-25, presented to Parliament on July 23, is futuristic in its intent, pragmatic in thrust and bold in tackling the complexities of managing Government finances. The FM has demonstrated emphatically that the Modi 3.0 means business and has gone the extra mile in translating its vision into actionable goals. Sitharaman has exercised deft fiscal prudence, resisting the temptation of spending lavishly, given that this was the first Budget of the newly-elected Government.
Nine priority areas
With her characteristic subdued but firm demeanour, she outlined nine key priority areas of the Government. These are agriculture productivity, employment, human resources enhancement, social justice, manufacturing and services, urban development, energy security, infrastructure, and innovation and research.
Sitharaman stated that these priorities would underpin the ongoing efforts to create abundant opportunities for all, with future Budgets building upon these foundations.
The thrust of her Budget speech was to outline a comprehensive strategy to stimulate growth across sectors while laying a robust foundation for future economic development and sustainability.
Highlighting the four primary areas of focus within these priorities – employment, skilling, MSMEs, and the middle class – the Finance Minister announced a comprehensive package aimed at benefiting 4.1 crore youth over five years, with an outlay of Rs. 2 lakh crore. Additionally, she allocated Rs.1.48 lakh crore towards education, employment, and skilling initiatives.
Focus on MSMEs
In a sharp focus on MSME sector and manufacturing, Sitharaman announced new measures to ensure continued bank credit for MSMEs during times of financial stress. She also introduced support for setting up 50 multi-product food irradiation units in the sector, along with e-commerce export hubs in partnership with the private sector to facilitate international sales for MSMEs and traditional artisans.
Budget lays foundation of Viksit Bharat
The Finance Minister detailed three schemes under a special package by the Prime Minister, aimed at supporting first-time employees. In the agriculture sector, Rs 1.52 lakh crore has been allocated, with a focus on enhancing productivity and resilience. Plans include the implementation of a National Cooperation Policy to accelerate rural economic growth and job creation, support for one crore farmers in transitioning to natural farming practices, and the introduction of Digital Public Infrastructure in agriculture.
In addition, initiatives such as the Jan Samarth-based Kisan credit cards in five states and the establishment of 10,000 need-based bio-input resource centres were announced, alongside the release of over 100 high-yielding crop varieties designed to withstand climate challenges
