Union Budget 2025 : Key highlights for UPSC and other competitive exams

As Union Budget is simply a precise essentials portion of the syllabus of immoderate signifier of the competitory exams, particularly UPSC, present are the cardinal pointers and highlights of Budget 2025 announcements. Also, don’t miss to brushwood up your basics connected fund towards the extremity of the article.

1. AGRICULTURE

— The govt volition beforehand aforesaid sufficiency successful pulses, with peculiar absorption connected accumulation and procurement of toor, urad, and masur. Bihar volition get a Makhana board, to boost the cultivation and selling of fox nuts. The radical engaged successful Makhana cultivation volition beryllium organized successful FPOs. About 10 lakh radical are straight oregon indirectly progressive successful Makhana cultivation and accumulation process successful Bihar, with the authorities accounting for astir 85 per cent of the full Makhana accumulation of the country. The Bihar authorities has been demanding measures from the Central authorities to beforehand Makhana cultivation. The authorities authorities had besides demanded a declaration of the minimum enactment price of Makhana.

— A holistic, multi-sectoral ‘Rural Prosperity and Resilience’ programme volition beryllium launched successful collaboration with states. This inaugural aims to tackle under-employment successful agriculture by promoting accomplishment development, investment, exertion adoption, and revitalization of the agrarian economy. The nonsubjective is to make abundant opportunities successful agrarian areas, ensuring migration remains a prime alternatively than a necessity. The programme volition prioritize agrarian women, young farmers, agrarian youth, marginal and tiny farmers, and landless families.

— A National Mission connected High Yielding Seeds volition beryllium launched, aimed astatine (1) strengthening the probe ecosystem, (2) targeted improvement and propagation of seeds with precocious yield, pest absorption and clime resilience, and (3) commercialized availability of much than 100 effect varieties released since July 2024.

— For the payment of fabric increasing farmers a 5-year ‘Mission for Cotton Productivity’ is announced.

— Government volition bring successful an enabling model for sustainable harnessing of fisheries from Indian Exclusive Economic Zone and High Seas, with a peculiar absorption connected the Andaman & Nicobar and Lakshadweep Islands.

—  India Post, on with India Post Payments bank, volition beryllium repositioned to beryllium a catalyst for the agrarian economy. India Post volition besides beryllium transformed into a ample nationalist logistics organization.

— The indebtedness bounds nether the Modified Interest Subvention Scheme volition beryllium enhanced from  Rs. 3 lakh to 5 lakh for loans taken done the KCC.

— A new strategy for agriculture sector—Prime Minister Dhan Dhanya Krishi Yojana (PMDDKY). This strategy volition beryllium implemented successful concern with states, crossed 100 districts successful its archetypal phase. The strategy volition beryllium connected the lines of Aspirational Districts Programme (ADP), which was launched by Prime Minister Narendra Modi successful 2018. The ADP is implemented crossed 112 districts. The PMDDKY volition beryllium implemented crossed agriculture districts.

— Finance Minister has announced the mounting up of a caller urea works astatine Namrup (Assam) with an yearly accumulation capableness of 12.70 lakh tonnes. If it takes off, that would beryllium the 7th caller urea works to travel up successful India since 2019. These see plants in Gadepan (Rajasthan), Ramagundam (Telangana), Panagarh (West Bengal), Gorakhpur (Uttar Pradesh), Barauni (Bihar), Sindri (Jharkhand) and Talcher (Odisha). The past works is yet to beryllium commissioned (about 65% completed), portion the different six are up and running.

— The Government volition supply enactment to NCDC for its lending operations for the cooperative sector.

2. MSMEs

— To assistance them execute higher efficiencies of scale, technological upgradation and amended entree to capital, the concern and turnover limits for classification of each MSMEs volition beryllium enhanced to 2.5 and 2 times respectively.

According to Finance Minister,

“To amended entree to credit, the recognition warrant screen volition beryllium enhanced:

1. For Micro and Small Enterprises, from Rs. 5 crore to 10 crore, starring to further recognition of Rs. 5 lakh crore successful the adjacent 5 years;

2. For Startups, from Rs. 10 crore to 20 crore, with the warrant interest being moderated to 1 per cent for loans successful 27 absorption sectors important for Atmanirbhar Bharat; and

3. For well-run exporter MSMEs, for word loans up to Rs. 20 crore.”

— In a boost to recognition to Micro industries, the authorities volition supply customised recognition cards with bounds of Rs 5 lakh nether Udyam portal. In the archetypal year, 10 lakh specified cards volition beryllium issued.

— A caller Fund of Funds for startups, with expanded scope and a caller publication of different Rs. 10,000 crore volition beryllium acceptable up. It should beryllium noted that the Alternate Investment Funds (AIFs) for startups person received commitments of much than Rs. 91,000 crore. These are supported by the Fund of Funds acceptable up with a Government publication of Rs. 10,000 crore.

— The authorities volition motorboat a caller strategy offering word loans of up to Rs 2 crore to first-time entrepreneurs among women, Scheduled Castes, and Scheduled Tribes.

— Building connected the National Action Plan for Toys, the authorities volition instrumentality a strategy to marque India a planetary hub for toys – promoting ‘Make successful India’ brand.

— As portion of the government’s committedness to ‘Purvodaya,’ it volition acceptable up a National Institute of Food Technology, Entrepreneurship, and Management successful Bihar.

— The authorities volition motorboat the National Manufacturing Mission covering small, medium, and ample enterprises for furthering Make successful India. Under this Mission, the authorities volition assistance with argumentation support, execution roadmaps, and governance and monitoring frameworks for cardinal ministries and states. The National Manufacturing Mission volition besides enactment cleanable tech manufacturing, fixed India’s committedness to climate-friendly development. Focus segments volition see star PV cells, EV batteries, motors and controllers, electrolysers, upwind turbines, precise precocious voltage transmission equipment, and grid-scale batteries.

3. INVESTMENTS

— Extension of Jal Jeevan Mission until 2028 to get 100 percent coverage.

— The Government volition found a ₹1 lakh crore Urban Challenge Fund to enactment initiatives similar ‘Cities arsenic Growth Hubs,’ ‘Creative Redevelopment,’ and ‘Water & Sanitation’. The money volition screen up to 25% of viable task costs, requiring astatine slightest 50% backing from bonds, slope loans, oregon PPPs. ₹10,000 crore is allocated for 2025-26.

— A Nuclear Energy Mission for probe & improvement of Small Modular Reactors (SMR) with an outlay of Rs. 20,000 crore volition beryllium acceptable up.

— The Shipbuilding Financial Assistance Policy volition beryllium revised to offset outgo disadvantages, including Credit Notes for shipbreaking successful Indian yards to enactment the circular economy. Large ships supra a acceptable size volition beryllium added to the infrastructure harmonized maestro database (HML). Shipbuilding Clusters volition beryllium developed with enhanced infrastructure, skilling, and exertion to grow vessel categories and capacity.

— A Maritime Development Fund with a corpus of Rs.25,000 crore volition beryllium acceptable up.

— Bihar Specific:

1. Greenfield Airports: New greenfield airports volition beryllium developed successful Bihar to cater to aboriginal demands, complementing the enlargement of Patna airdrome and the improvement of a brownfield airdrome astatine Bihta.
2. Western Koshi Canal Project: Financial enactment volition beryllium provided for the Western Koshi Canal ERM Project, which volition payment farmers successful the Mithilanchal region, helping with irrigation crossed implicit 50,000 hectares of land.

— SWAMIH Fund 2 volition beryllium established arsenic a blended concern installation with publication from the Government, banks and backstage investors. This money of 1completion of 1 lakh units.

— The program focuses connected processing the apical 50 tourer destinations successful concern with states, with states providing onshore for cardinal infrastructure. Key initiatives include:

1. Skill improvement programs, including successful Institutes of Hospitality Management.
2. MUDRA loans for homestays.
3. Improved question connectivity to tourer sites.
4. Performance-linked incentives for states to negociate destinations, amenities, cleanliness, and marketing.
5. Streamlined e-visa facilities and visa-fee waivers for immoderate tourer groups.

Additionally, determination volition beryllium peculiar attraction connected destinations tied to Lord Buddha’s beingness and promoting aesculapian tourism with easier visa norms and backstage assemblage collaboration.

— A modified UDAN strategy volition beryllium launched to heighten determination connectivity to 120 caller destinations and transportation 4 crore passengers successful the adjacent 10 years. The strategy volition besides enactment helipads and smaller airports successful hilly, aspirational, and North East portion districts.

— Investing successful innovation the fund announced a ‘Deep Tech Fund of Funds’ for adjacent procreation startups and 10 1000 PM probe fellowships for technological probe successful IITs and IISc successful adjacent 5 years.The 2^nd Gene Bank was announced with 10 lakh germplasm lines volition beryllium acceptable up for aboriginal nutrient and nutritional security. (Supporting some nationalist and backstage sector.) A National Geospatial Mission volition beryllium started to make foundational geospatial infrastructure and data. A Gyan Bharatam Mission volition beryllium launched to survey, document, and sphere our affluent manuscript practice successful collaboration with world institutions, museums, libraries, and backstage collectors, covering implicit 1 crore manuscripts. Additionally, a National Digital Repository of Indian Knowledge Systems volition beryllium established to facilitate cognition sharing.

4. EXPORTS

— Establish an Export Promotion Mission to heighten export recognition entree and enactment MSMEs successful planetary markets.

— BharatTradeNet: Develop a unified integer level for planetary commercialized documentation and financing solutions.

— Global Supply Chain Integration: Support home manufacturing to integrate India’s system into planetary proviso chains, focusing connected Industry 4.0 and younker talent.

— National Framework for GCC: Create a model to beforehand Global Capability Centres successful tier 2 cities, focusing connected endowment and infrastructure.

— Improve aerial cargo infrastructure and streamline customs for perishable goods.

What are the large fiscal sectors reforms announced successful the Budget?

The authorities volition forgo Rs 1 lakh crore successful nonstop taxes, Rs 2,600 crore successful indirect taxes connected relationship of changes successful taxation rates.

The yearly bounds for TDS connected rent has been raised from Rs 2.40 lakh to Rs 6 lakh, benefiting tiny taxpayers receiving smaller payments.

Brush up the basics:

What is the Union Budget?

The Union Budget (technically called the Annual Financial Statement nether Article 112 of the Constitution of India) lays retired an relationship of the government’s fiscal health. It tells the citizens not lone however overmuch wealth the authorities raised past year, wherever it spent it, and however overmuch it had to get to conscionable the gap, but besides gives an estimation of what it expects to earn in the adjacent fiscal twelvemonth (in the contiguous case, the existent fiscal year), however overmuch and wherever it plans to walk it, and however overmuch it would apt person to get to span the gap. The Revenue and the Capital sections together, marque the Union Budget.

What are the important Budget Documents?

Besides the Union Finance Minister’s Budget Speech, assorted Budget documents are presented to the Parliament.

A. Documents mandated nether the constitution of India:

1. Annual Financial Statement (AFS) – Under Art. 112

2. Demands for Grants (DG) — Under Art. 113

3. Finance Bill— Under Art. 110

B. Documents presented arsenic per the provisions of the Fiscal Responsibility and Budget Management Act, 2003:

1. Macro-Economic Framework Statement

2. Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement

What are immoderate important presumption related to Budget?

1. Revenue Budget: The gross fund consists of the government’s gross receipts (Tax revenues and non-tax revenues) and gross expenditures. Tax revenues comprise proceeds of taxes and different duties levied by the Union.

2. Revenue Expenditure: Revenue expenditure is for the mean moving of Government Departments and for rendering of assorted services, making involvement payments connected debt, gathering subsidies, 11 grants successful aid, etc. Broadly, the expenditure which does not effect successful the instauration of assets for the Government of India is treated arsenic gross expenditure.

3. Capital Budget: Capital receipts and superior expenditures unneurotic represent the Capital Budget. The superior receipts are loans raised by the Government. Capital expenditure consists of the acquisition of assets similar land, buildings, machinery, equipment, arsenic good arsenic investments successful shares, etc., and loans and advances granted by the Central Government to the State and the Union Territory Governments, Government companies, Corporations, and different parties.

4. Fiscal Deficit: Fiscal Deficit is the quality betwixt the Revenue Receipts positive Non-debt Capital Receipts (NDCR) and the full expenditure. In different words, fiscal shortage is “reflective of the full borrowing requirements of Government”.

5. Demands for Grants: Article 113 of the Constitution mandates that the estimates of expenditure from the Consolidated Fund of India included successful the Annual Financial Statement and required to beryllium voted by the Lok Sabha, beryllium submitted successful the signifier of Demands for Grants.

6. Money Bill: Article 110 defines a “Money Bill” arsenic 1 containing provisions dealing with taxes, regularisation of the government’s borrowing of money, and expenditure oregon receipt of wealth from the Consolidated Fund of India, among others.

7. Finance Bill: At the clip of presumption of the Annual Financial Statement earlier the Parliament, a Finance Bill is besides presented successful fulfillment of the request of Article 110 (1)(a) of the Constitution, detailing the imposition, abolition, remission, alteration oregon regularisation of taxes projected successful the Budget. A large quality betwixt wealth and Financial Bills is that portion the second has the proviso of including the Rajya Sabha’s (Upper House) recommendations, the erstwhile does not marque their inclusion mandatory. The Lok Sabha has the close to cull the Rajya Sabha’s recommendations erstwhile it comes to Money Bills.

(Source: http://www.indiabudget.gov.in)

Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram transmission – IndianExpress UPSC Hub, and travel america on Instagram and X.

🚨New Year Special: Click Here to work the January 2025 issue of the UPSC Essentials monthly magazine. Share your views and suggestions successful the remark container oregon at manas.srivastava@indianexpress.com🚨