Budget 2024-25 Overview

• Historical Context:
  • First budget in India presented by James Wilson in 1860.
  • First budget after independence presented by K. Shanmukham Chetty.
  • First budget of Republican India presented by John Mathai.
  • Morarji Desai has presented the budget the most number of times (10 times).
  • First woman to present the budget was Indira Gandhi.
  • Nirmala Sitharaman is the first full-time female Finance Minister.
  • Nirmala Sitharaman presented the longest budget in 2020.
• Current Budget Presentation:
  • Finance Minister Nirmala Sitharaman presented the budget for the eighth time.
  • Presented on February 1st.
• Vision for 'Viksit Bharat' (Developed India):
  • Freedom from poverty.
  • 100% schooling.
  • Excellent, affordable, and accessible healthcare facilities.
  • 100% skilled workforce.
  • 70% women's participation in economic activities.
  • Making India the "Food Basket of the World."
• Budget 2024-25 Framework:
  • Destination: Viksit Bharat
  • Guidance: Inclusivity
  • Fuel: Reforms
  • Four Engines: Agriculture, MSME, Investment, Exports

Budget Focus Areas

1. Agriculture

• Pradhan Mantri Dhan Dhanya Krishi Yojana:
  • Aimed at increasing agricultural productivity.
  • Launched in 100 districts.
  • Expected to benefit 1.7 crore farmers.
  • Implemented for 6 years.
• Self-Reliance Mission in Pulses:
  • 6-year mission.
  • Focus on three pulses: Tur (Arhar), Urad, and Masoor.
• Missions also launched for vegetables, fruits, and Shree Anna (millets). (2023 was declared the International Year of Millets).
• Makhana Board: To be established in Bihar.
• National High Yield Seed Mission: For developing high-yielding seeds.
• Cotton Production Mission:
  • 5-year mission.
  • Aimed at producing high-quality cotton to boost the textile industry.
• Kisan Credit Card (KCC) Limit: Increased from ₹3 lakh to ₹5 lakh.
• Urea Plant in Namrup, Assam:
  • To be established in Namrup, Assam.
  • Production capacity: 12.7 lakh metric tons.

2. MSME (Micro, Small, Medium Enterprises)

• Revised Definition of MSME:
  • Based on investment and turnover. | Category | Investment Limit | Turnover Limit | | :------- | :--------------- | :------------- | | Micro | Up to ₹2.5 crore | Up to ₹10 crore | | Small | Up to ₹25 crore | Up to ₹100 crore | | Medium | Up to ₹125 crore | Up to ₹500 crore |
• Credit Card for Micro Enterprises:
  • Special credit card with a ₹5 lakh limit.
  • Available on the Udyam Portal.
• National Manufacturing Mission:
  • To boost manufacturing and Make in India.
  • Focus on footwear, toys, and food processing industries.

3. Investment

• Atal Tinkering Labs:
  • 500 labs to be established in government schools over the next 5 years.
  • Aimed at fostering interest in Science, Technology, and Mathematics among children.
• Indian Language Book Scheme:
  • To provide digitally accessible books in Indian languages for school and higher education.
  • Aims to promote reading in local languages.
• National Skill Excellence Centers:
  • Five centers to be established for skill development.
  • Focus on "Make for India" and "Make for the World."
• AI Excellence Center in Education:
  • ₹500 crore allocated.
  • To promote AI in education.
• Cancer Care:
  • Cancer medicines made cheaper.
  • Daycare Cancer Hospitals to be established in all district hospitals within three years.
• Jal Jeevan Mission:
  • Extended until 2028 (originally 2019-2024).
  • Objective: 'Har Ghar Jal' (water to every household).
• Maritime Development Fund:
  • To be created for the development of oceans.
  • Government to contribute 49% of the funds.
• UDAAN Scheme (Ude Desh ka Aam Nagarik):
  • 120 new destinations to be explored and connected in the next 10 years.
• Infrastructure in Bihar:
  • Greenfield Airport to be established in Bihar.
  • West Kosi Canal project to be developed in Mithilanchal.
• Gyan Bharatam Mission:
  • To be launched for the conservation of over 1 crore manuscripts.

4. Exports

• Bharat Trade Net Platform:
  • Launched to improve export supply.

Reforms

• Insurance Sector:
  • FDI limit increased from 74% to 100%.

Tax Reforms and Fiscal Data

• Fiscal Deficit:
  • Estimated at 4.8% of GDP for FY 2024-25.
  • Estimated at 4.4% of GDP for FY 2025-26.
• Tax Exemptions:
  • Tax removed from 36 life-saving drugs (for rare diseases, cancer, etc.).
• New Income Tax Regime:
  • A new Income Tax Bill to be introduced, replacing the 1961 bill.
• New Tax Slabs (up to ₹12 lakh is tax-free):

  Income Slab (₹)	Tax Rate (%)
  0 - 4 lakh	0
  4 - 8 lakh	5
  8 - 12 lakh	10
  12 - 16 lakh	15
  16 - 20 lakh	20
  20 - 24 lakh	25
  Above 24 lakh	30

Budget Allocations (Where Money Comes From & Goes)

• Sources of Revenue (Top 3):
  1. Borrowings: 24%
  2. Income Tax: 22%
  3. GST: 18%
• Major Expenditures (Top 3):
  1. States' share of taxes and duties: 22%
  2. Interest Payments: 20%
  3. Defense: Highest allocation among ministries/sectors.
• Top Expenditure by Sector/Ministry:
  1. Defense
  2. Rural Development
  3. Home Ministry
  4. Agriculture and Allied Sectors

Key Current Affairs Updates

• UPI: Became the world's top real-time payment system with 65.26 crore daily transactions, surpassing Visa (63.9 crore). UPI is currently used in 7 countries including India, UAE, Trinidad and Tobago, Nepal, France, and Singapore.
• Tesla Expansion in India:
  • Tesla Inc. opened its 50th global market center in Mumbai (Bandra Kurla Complex), which is its first showroom in India.
  • Will sell its Model Y electric car (price ₹50-65 lakh).
  • Plans to set up superchargers in India, capable of charging a car 100% in 15-20 minutes for a 500 km range.
  • Tesla is owned by Elon Musk, who recently formed a new political party in the USA called "America Party."
• QS Best Student Cities Ranking 2026:
  • Overall Best Cities: Seoul (1st), Tokyo (2nd).
  • Indian Cities in Top 100: Mumbai (98th).
  • Most Affordable City for Students Globally: Delhi (1st, with 96.5 points). Delhi ranked 104th overall.
• GE Aerospace and HAL:
  • US-based GE Aerospace delivered the second GE 404 engine to Hindustan Aeronautics Limited (HAL) in Bengaluru for the Tejas MK1A light combat aircraft.
  • An agreement for 99 such engines exists.
  • HAL is India's 14th Maharatna company.
• Operation Fire Trail:
  • Launched by the Directorate of Revenue Intelligence (DRI) to seize illegal Chinese firecrackers.
  • Seized ₹35 crore worth of crackers from Nhava Sheva Port (Maharashtra), Mundra Port (Gujarat), and Kandla Port (Gujarat).
  • Import of firecrackers is banned without a license.
  • Kandla is India's first Special Economic Zone (SEZ), now named Deendayal Upadhyay Port.
• Aditi Yojana:
  • Launched by Union Minister Manohar Lal Khattar from Panipat, Haryana.
  • Aimed at promoting energy-efficient technologies in MSMEs.
  • Implemented by the Bureau of Energy Efficiency (BEE), established in 2002 under the 2001 Act.
  • 3-year scheme with an allocation of ₹1000 crore.
  • Offers 5% interest subsidy for micro industries and 3% for small industries.
  • Aims to reduce carbon emissions and increase renewable energy use in India.
• Kalinga Ratna Puraskar 2024:
  • Presented by President Droupadi Murmu at a ceremony in Cuttack, Odisha, honoring Adi Kavi Sarala Das.
  • Awarded to Union Education Minister Dharmendra Pradhan.
  • Sarala Samman awarded to Vijay Nayak.
  • Sarala Das is a renowned Odia poet known for translating Mahabharata, Ramayana, and Chandi Purana into Odia.
  • Odia is the 6th classical language of India. Odissi is a classical dance form.
• Dror-1 Satellite:
  • Israel's most advanced communication satellite, built by Israel Aerospace Industries.
  • Launched by SpaceX's Falcon 9 rocket from the USA.
  • Expected to provide communication services to Israel for 15 years.
  • Israel Facts: Parliament: Knesset, Currency: New Shekel, Prime Minister: Benjamin Netanyahu.
• Aqua Tech Park:
  • India's first Aqua Tech Park inaugurated in Sonapur, Guwahati, Assam, by Chief Minister Himanta Biswa Sarma.
  • Objective: Promote pisciculture (fisheries), ornamental fish production, and aquaponics.
  • Andhra Pradesh leads in fish production in India.
• LIC CEO and MD:
  • R. Doraiswamy appointed as the new CEO and MD of Life Insurance Corporation (LIC).
  • Tenure: 3 years or until 62 years of age, whichever is earlier.
  • Sanjay Kol appointed new CEO of GIFT City in Gandhinagar.
• Yemen's Stay on Indian Nurse's Execution:
  • Yemen has temporarily stayed the execution of Indian nurse Nimisha Priya. (Details on "Blood Money" to follow in a separate session).

Other Key Updates (Quick Mentions)

• Rice App: Launched by Uttar Pradesh for digital monitoring of routine vaccination.
• First State to Launch Own Satellite: Assam.
• Madhavpur Mela: Held in Gujarat, celebrating the marriage of Dwarkadhish Shri Krishna and Rukmini.
• Hitesh Golia: First Indian to win gold at the World Boxing World Cup 2025 in Brazil.
• First International Research Conference on Pensions: To be held in Delhi (in collaboration with the World Bank).
• International Day of Hope: Declared by UN General Assembly on July 12.
• Meditation Day: December 21.
• Grand Commander of the Indian Ocean: Highest civilian honor of Mauritius awarded to PM Modi.
• Highest Real Economic Growth Rate (FY 2024-25): Tamil Nadu (9.69%).
• Inter-Parliamentary Union (IPU) Summit: 150th summit held in Tashkent.
• Corpat and Bongosagar Exercises: Joint naval exercises between India and Bangladesh in the Bay of Bengal.
• IFA Awards 2025 (25th Edition): Best Film Award to "Laapataa Ladies," held in Jaipur.
• Mithathal and Tighrana (Harappan Sites): Declared protected archaeological sites by Haryana.
• City Key of Honor: Awarded to President Droupadi Murmu by Lisbon (capital of Portugal).
• State Using State Language Symbol Instead of Rupee Symbol: Tamil Nadu.
• Tukal Pongal Festival: Largest women's gathering held in Kerala.
• INS Varsha (Nuclear Submarine Base): Inaugurated in Visakhapatnam.
• Dyer Wolf (Ice Age): Revived in the USA after 10,000 years.
• Planet with Most Moons: Saturn (274 moons, with 128 new ones).
• First Metro to Start Urban Cargo Service: Delhi Metro.
• Kalam 100 Engine Test: Successfully tested for Vikram-1 rocket by Skyroot Aerospace (India's first private rocket company).
• BIMSTEC Agricultural Conference (3rd): Held in Nepal.
• Kabaddi World Cup Outside Asia (First Time): Held in England; India won, England lost.
• Oldest Player to Debut in International Cricket (at 62): Matthew Brownley.
• BIS Certificate for Piped Water Supply: Bengaluru Water Board became the first to receive it.
• Subhanshu Shukla's Return from ISS: Returned to Earth in Space X's Grace capsule.
• Tahawwur Rana (26/11 Accused): Extradited to India by the USA.
• First Unicorn of 2025: JusPay.
• Asian Film Awards 2025 Best Film: "All We Imagine As Light" by Payal Kapadia.
• Indian Army: Topped the point table in Khelo India Winter Games 2025.
• Rasina Dialogue (24th): Held in Delhi, Chief Guest: Christopher Lorenz (PM of New Zealand).
• T20 Cricket: Virat Kohli became the first Indian batsman to score 13,000 runs.
• Indian Oil Corporation (IOC): Setting up a world-class petrochemical complex in Odisha with ₹61,000 crore investment.
• Himalayan Climate Center: India's first center launched by Union Minister Jitendra Singh in Jammu and Kashmir.
• Panchayat Unnati Suchkank (Category A): Gujarat ranked as the front-runner.
• Prachand Shakti Military Exercise: Held in Meerut.
• Jagraffetas Mathi Butterfly: New species found in Kerala.
• Test Cricket All Out (27 Runs): West Indies.
• Juniors National Rugby Sevens 2025 (U-18 Boys): Won by Bihar.