Key Features of Budget 2024-2025 July, 2024 ºÉiªÉàÉä´É VɪÉiÉä 

Employment 01 Skilling 02 MSMEs 03 Middle Class 04 Budget Theme Roadmap for our pursuit of ‘Viksit Bharat’ 1 ‘Mahilayen’ (Women) ‘Garib’ (Poor) Focus on 4 major castes ‘Yuva’ (Youth) ‘Annadata’ (Farmer) 

Priorities for Viksit Bharat Employment & Skilling 02 - Facilitate higher participation of women in the workforce through setting up of working women hostels in collaboration with industry, and establishing creches. - One-month wage to new entrants in all formal sectors in 3 instalments up to ₹15,000 . - Expected to benefit 210 lakh youth Scheme A First Timers - Linked to first time employees - Incentive to both employee & employer for EPFO contributions in the specified scales for the first 4 years - Expected to benefit 30 lakh youth Scheme B Job Creation in Manufacturing Scheme C Support to Employers - Government will reimburse EPFO contributions of employers up to ₹3000 per month for 2 years for all new hires. - Expected to generate 50 lakh jobs - Loans up to ₹7.5 lakh with a guarantee from a government promoted Fund. - Expected to help 25,000 students every year. - Financial support for loans upto ₹10 lakh for higher education in domestic institutions. - Direct E-vouchers to 1 lakh students every year. - Annual interest subvention of 3% PM’s Package (3 schemes for Employment Linked Incentive) PM’s Package (4th scheme) Skilling Programme • 20 lakh youth will be skilled over a 5-year period. • 1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation. • Course content & design aligned as per skill needs of industry. 3 3 

Manufacturing & Services 04 Twelve industrial parks under the National Industrial Corridor Development Programme PM’s Package (5th scheme) Internship Opportunities • Scheme for providing internship opportunities in 500 top companies to 1 crore youth in 5 years. • Allowance of ₹5,000 per month along with a one-time assistance of ₹6,000 through the CSR funds. Rental housing with dormitory type accommodation for industrial workers in PPP mode with VGF support. Critical Minerals Mission for domestic production, recycling and overseas acquisition. Strengthening of the tribunal and appellate tribunals to speed up insolvency resolution and additional tribunals to be established Credit Support to MSMEs during Stress Period Credit Guarantee Scheme for MSMEs in the Manufacturing Sector Enhanced scope for mandatory onboarding in TReDS New assessment model for MSME credit Mudra Loans: The limit enhanced to ₹ 20 lakh from the current ₹ 10 lakh under the ‘Tarun’ category. MSME Units for Food Irradiation, Quality & Safety Testing 5 5 Priorities for Viksit Bharat 

₹1.5 lakh crore to states as long- term interest free loans to support resource allocation. Priorities for Viksit Bharat Provision of ₹11,11,111 crore for infrastructure (3.4% of GDP). Infrastructure 07 Phase IV of PMGSY will be launched to provide all- weather connectivity to 25,000 rural habitations. Irrigation and Flood Mitigation Financial support for projects with estimated cost of ₹11,500 crore such as the Kosi-Mechi intra-state link and 20 other ongoing and new schemes Assistance for reconstruction and rehabilitation in Himachal Pradesh 01 05 Assistance for flood management and related projects in Assam, Sikkim & Uttarakhand 8 

Operationalization of the Anusandhan National Research Fund for basic research and prototype development. Priorities for Viksit Bharat Innovation, Research & Development 08 Private sector-driven research and innovation at commercial scale with a financing pool of ₹1 lakh crore Space Economy: A venture capital fund of ₹1,000 crore is to be set up Infrastructure 07 • Development of Vishnupad Temple Corridor and Mahabodhi Temple Corridor modelled on Kashi Vishwanath Temple Corridor • Comprehensive development initiative for Rajgir will be undertaken which holds religious significance for Hindus, Buddhists and Jains. • The development of Nalanda as a tourist centre besides reviving Nalanda University to its glorious stature. • Assistance to development of Odisha’s scenic beauty, temples, monuments, craftsmanship, wildlife sanctuaries, natural landscapes and pristine beaches making it an ultimate tourism destination. Tourism 9 9 

-10 -5 0 5 10 15 0 50 100 150 200 2019-20 2020-21 2021-22 2022-23 (RE) 2023-24 (PE) per cent ₹lakh crore Real GDP Real GDP growth (RHS) Robust Economic Foundations India grew at 8.2 per cent in FY 2024 Improvement in Current Account Deficit 30 40 50 60 70 Apr 21 Jul 21 Oct 21 Jan 22 Apr 22 Jul 22 Oct 22 Jan 23 Apr 23 Jul 23 Oct 23 Jan 24 Apr 24 Services Manufacturing Expansionary PMI Index 9.2 6.7 6.4 5.6 0 1 2 3 4 5 6 7 8 9 10 FY21 FY22 FY23 FY24 FD as % of GDP 6.2 5.5 6.7 5.4 4 5 6 7 2020 2021 2022 2023 Per cent Taming Inflation Decreasing Fiscal Deficit as % of GDP -2.5 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Per cent 0 2 4 6 8 10 12 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Per cent Decline in Gross NPAs of SCBs 11 

Fully exempt 3 more cancer medicines from custom duties Tax Proposals Simplification in Taxes Litigation and Appeal Review of Income Tax Act 1961 Changes in Custom Duty Affordable medicines Mobile industry Domestic value addition Support energy transition Boost to strategic sectors Beneficiaries Reduce BCD to 15% on Mobile phone, Mobile PCBA and charger Reduce custom duty on gold and silver to 6% and platinum to 6.4% Reduce BCD on shrimp and fish feed to 5% Exempted more capital goods for manufacturing of solar cells & panels Fully exempt custom duties on 25 critical minerals Enhance competitiveness in marine exports Simplification of charities and TDS Deepening the tax base Sector Specific Customs Duty Proposals Comprehensive review of the rate structure for ease of trade, removal of duty inversion and reduction of disputes 12 

• Short term gains of financial assets to attract 20% tax rate • Long term gains on all financial an non-financial assets to attract a tax rate of 12.5% • Increase in limit of exemption of capital gains on financial assets to ₹1.25 lakh per year Standard Deduction for salaried employees increased from ₹50,000 to ₹75,000 Direct Tax Proposals To reduce the compliance burden, promote entrepreneurial spirit and provide tax relief to citizens Simplifying New Tax Regime ₹12- ₹15 lakh > ₹15 lakh Nil ₹10- ₹12 lakh ₹7- ₹10 lakh ₹3- ₹7 lakh ₹0- ₹3 lakh 5% 10% 15% 20% 30% Deduction on family pension for pensioners increased from ₹15,000 to ₹25,000 Savings upto ₹17,500 • Abolish ANGEL tax for all classes of investors. • Simpler tax regime to operate domestic cruise • Provide for safe harbour rates for foreign mining companies (Selling raw diamonds) • Corporate tax rate on foreign companies reduced from 40% to 35% Employment and Investment Rationalisation of capital gains 13 

19% 16% 6% 8% 21% 9% 8% 9% 4% Interest Payments (19%) Central Sector Scheme (excluding capital outlay on Defence and Subsidy) (16%) Subsidies (6%) Defence (8%) Other Expenditure (9%) Centrally Sponsored Scheme (8%) Finance Commission and other transfers (9%) States' share of Taxes and Duties (21%) Pensions (4%) Rupee Comes From 27% 9% 1% 4% 17% 18% 5% 19% Non-Tax Receipts (9%) Non-Debt Capital Receipts Customs (4%) Corporation tax (17%) GST & other taxes (18%) Union Excise Duties (5%) Income Tax (19%) Borrowing and Other Liabilities (27%) Rupee Goes To ₹ ₹ Rupee Comes From 14 

Expenditure of Major Items Ministry of Road Transport and Highways Energy in ₹ Crore 2,65,808 Agriculture and Allied Activities 1,51,851 Home Affairs 1,50,983 Education 1,25,638 IT and Telecom 1,16,342 Health 89,287 68,769 Social Welfare 56,501 Rural Development Defence 4,54,773 Commerce & Industry 47,559 15 

Allocation to Major Schemes (in ₹ crore) Research and Development Projects 2023-24(BE) 2024-25(BE) 1,200 840 MGNREGA 2023-24(BE) 2024-25(BE) 86,000 60,000 Nuclear Power Projects 2023-24(BE) 2024-25(BE) 2,228 442 PLI for Pharmaceutical Industry 2023-24(BE) 2024-25(BE) 2,143 1,200 2023-24(BE) 2024-25(BE) 10,000 4,970 Solar Power (Grid) Development of Semiconductors and Display Manufacturing 2023-24(BE) 2024-25(BE) 6,903 3,000 Lines of Credit under IDEA Scheme 2024-25(BE) 3,849 2023-24(BE) 1,300 2023-24(BE) 2024-25(BE) 1,500 180 Direct Benefit Transfer- LPG 16 

Receipts 23.8 26.3 27.0 31.3 0 5 10 15 20 25 30 35 2022-23 (Actuals) 2023-24 (BE) 2023-24 (RE) 2024-25 (BE) ₹Lakh Crore 18.1 18.7 17.9 16.9 16 17 18 19 2022-23 (Actuals) 2023-24 (BE) 2023-24 (RE) 2024-25 (BE) ₹Lakh Crore 34.5 35.0 35.4 37.1 33 34 35 36 37 2022-23 (Actuals) 2023-24 (BE) 2023-24 (RE) 2024-25 (BE) ₹Lakh Crore 10.5 13.7 12.7 15.0 0 4 8 12 16 2022-23 (Actuals) 2023-24 (BE) 2023-24 (RE) 2024-25 (BE) ₹Lakh Crore Expenditure Revenue Receipts Capital Receipts Revenue Expenditure Effective Capital Expenditure 17