New Delhi:
Finance Minister Nirmala Sitharaman will present the general budget for 2025-2026 on 1 February. The direction of the government’s economic policy is visible in the general budget. In this, ministries are allocated money for their expenses. In this, details of tax proposals are presented for the coming year in it. General budgets are presented by the government for every financial year. Before the upcoming budget on one date, let us know the essence of last year’s budget.
Budget summary is a brief version of the budget, in which the financial provisions and priorities made by the government are summarized. This is usually a brief form of budget speech or budget documents, which includes the main points.
How was the budget of 2024
In the Union Budget of 2024-25, the government took many important steps to encourage economic development. Capital expenditure in the budget was increased by 11.1% to ₹ 11.11 lakh crore. Which was 3.4% of GDP. The fiscal deficit is targeted at 4.9% of GDP, which is less than 5.6% of the previous year.
The Union Budget of 2024-25 presented by the Finance Minister emphasized the country’s economic development, infrastructure expansion, social welfare and financial stability. The government had allocated ₹ 11.11 lakh crore (3.4%of GDP) to increase infrastructure, transport and investment in energy sectors. The government also insisted on working on the goal of reducing fiscal deficit. Emphasis was also laid on giving tax relief for the lower and middle class.
What was the major things of Union Budget 2024-25
- Fiscal deficit control – It was limited to 4.9% of GDP, which was less than 5.6% in 2023.
- Capital expenditure growth – ₹ 11.11 lakh crore was allocated for infrastructure and transport development.
- In order to provide relief to the middle class through tax reform, the government had changed the capital gains and security taxes.
- Credit guarantee schemes were increased for small industries to promote employment and MSME.
- Agricultural and Rural Development Climate-Smart had promoted agriculture, digital and e-commerce.
- The government emphasized on women’s empowerment. Financial and social schemes were made under the ‘Nari Shakti’ scheme.
- The budget was increased for the subsidy provision for food, fertilizer and petroleum subsidy.
- Increasing the defense budget, the government had increased the budget for modern defense equipment and security reforms.
- Ayushman Bharat for health and education, a plan to invest more for digital education and research was made by the government.
- It was said to promote renewable energy, electric vehicles and hydrogen missions for energy and green initiatives.
Where does the money come from for the budget?
Money for the budget comes mainly from three sources. Tax is the biggest source of income of the government, which includes two types of taxes. Direct tax and indirect tax. At the same time, when the second source of income is less than the government’s income, it borrows to meet the deficit. Bonds and securities are issued and foreign debt or assistance is taken. The third source is designing, under which the government reduces its stake from the public sector. The government tries to balance its budget by getting income from all these sources.
How is the money spent in the budget?
The government spends budget money (salary, pension, subsidy, interest payment, schemes) and capital expenditure (roads, railway, defense, government assets). The areas of education, health, agriculture, rural development and innovation are also invested so that the country’s economy can be strengthened. You can see in the graph how in which field the government had planned to spend how much money in the budget of 2024.
Which areas had losses
In the budget of 2024-25, the government targeted the fiscal deficit at 4.9% of the GDP (GDP), which was less than 5.6% of the earlier year. The fiscal deficit arises when the total expenditure of the government is more than its total receipts (except borrowings). The government has to borrow to meet this gap. For the year 2024-25, the total expenditure was estimated at Rs 48.21 lakh crore and total receipts (except borrowings) Rs 32.07 lakh crore. Due to which a fiscal deficit of Rs 16.14 lakh crore was shown.
In which way was the budget of budget 2024 different?
Budget 2024 In many ways from previous years, Budget 2024 emphasized developmental approach and economic stability. Investment in areas like defense and health was extended especially. The government had increased the budget allocation to improve digital infrastructure, modern agricultural techniques and innovation. Financial provisions were made to promote solar energy and hydrogen missions. Also, credit guarantee schemes were introduced for MSME, Startups, and Micro enterprises. Steps were also taken on climate change, which will promote sustainable development. Empowering fiscal management, the government tried to control the financial deficit.
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