Comprehensive Analysis of Union Budget 2024 | Initiatives, Schemes and Statistics Explained
Ringkasan
TLDRThe video presents an in-depth analysis of India's Union Budget for the fiscal year 2024-2025, marking Nirmala Sitaraman's seventh budget as Finance Minister and the first post-2024 general elections. The budget aims to position India towards becoming a developed nation by 2047, emphasizing priorities like agriculture, employment, and social justice. The total budget expenditure is ₹48.2 lakh crores, significantly higher than the expected revenue receipts of ₹32.7 lakh crores, leading to a fiscal deficit of ₹16.13 lakh crores (approximately 4.9% of GDP). Key taxation changes include increased capital gains tax rates and the abolition of Angel tax. The budget has received mixed feedback, praised for its long-term vision while criticized for shortcomings in inflation and unemployment concerns.
Takeaways
- 📅 Union Budget presented on July 23, 2024.
- 💰 Total expenditure of ₹48.2 lakh crores.
- 📉 Fiscal deficit projected at 4.9% of GDP.
- 🔍 Key priorities include agriculture and employment.
- 📈 Long-term capital gains tax increased to 12.5%.
- 🔄 Angel tax abolished to support startups.
- 🧑🤝🧑 New schemes for youth skilling and job creation announced.
- 🏢 Focus on urban development and infrastructure.
- ⚖️ Mixed reactions from experts on budget effectiveness.
- 📖 Historical context of India's budget process provided.
Garis waktu
- 00:00:00 - 00:05:00
On July 23, 2024, Union Finance Minister Nirmala Sitaraman presented the 2024-2025 Union Budget, marking her seventh consecutive presentation. This budget becomes crucial as it sets the governmental agenda for the next five years after the recently concluded general elections. The Prime Minister praised it as inclusive for all societal sections while concerns regarding inflation and unemployment were raised by the former Finance Minister, showcasing divided opinions in the public discourse surrounding this budget.
- 00:05:00 - 00:10:00
The Union Budget, presented annually, consists of planned government expenditure and revenue forecasts. The 2024 budget deviated from tradition by being presented later than February due to the general elections. The budget's classification is divided into revenue and capital budgets, with revenue focusing on routine government income and spending, while capital relates to assets. Notably, the term 'budget' itself is absent from the Indian Constitution, being referred to as the 'annual financial statement'.
- 00:10:00 - 00:15:00
The Union budget includes two main parts: the macroeconomic overview (Part A) and the finance bill (Part B), detailing taxation. Major budget documents are submitted alongside the budget speech, and a historical context reveals the merger of the railway budget with the general budget in 2016. The budget process involves multiple steps from presentation to appropriation to ensure parliamentary approval and public scrutiny.
- 00:15:00 - 00:20:00
The 2024-2025 budget is designed around the vision of a developed India by 2047, with a focus on boosting economy through targeted initiatives in agriculture, employment, human resources, and manufacturing. Priority sectors include agriculture's productivity, jobs, social justice, infrastructure, and innovation. Several new schemes aim to enhance skill development and support MSMEs, setting a robust foundation for growth in these areas.
- 00:20:00 - 00:29:18
The estimated budget expenditure for 2024-2025 is 48.2 lakh crores, with a significant increase noted from the previous year. However, revenue receipts project at 32.7 lakh crores, leading to a fiscal deficit of 16.13 lakh crores, indicating a reliance on borrowing. Tax reforms, particularly affecting capital gains taxes, have drawn criticism but also praise regarding their goal to foster investment. The budget aims to stimulate growth despite mixed reactions from various economic sectors.
Peta Pikiran
Video Tanya Jawab
What is the main goal of the 2024 budget?
The main goal is to outline the path towards a developed India by 2047.
What are the key priority areas in the budget?
The key priority areas include agriculture, employment, social justice, manufacturing, urban development, energy security, infrastructure, innovation, and next-generation reforms.
What is the total budget expenditure for 2024-2025?
The total budget expenditure for 2024-2025 is ₹48.2 lakh crores.
How much is the projected fiscal deficit?
The projected fiscal deficit is ₹16.13 lakh crores, which is about 4.9% of GDP.
What changes were made to capital gains tax in this budget?
Long-term capital gains tax was increased from 10% to 12.5%, and short-term capital gains tax increased from 15% to 20%.
How does the budget address unemployment?
The budget includes schemes focusing on skilling 20 lakh youth and job creation in the manufacturing sector.
What are the major criticisms of the budget?
Criticism includes concerns over inflation control, inadequate measures for unemployment, and increased capital gains tax.
What is the historical context of India's budget?
India's first budget post-independence was presented in 1947; the budget is presented annually on February 1st, although this year it was delayed to July.
What are the revenue receipts expected in 2024-2025?
The revenue receipts are projected to be ₹32.7 lakh crores.
What is the role of the halwa ceremony in the budgeting process?
The halwa ceremony marks the start of the 'lock-in period' for finance ministry staff involved in budget preparation.
Lihat lebih banyak ringkasan video
- 00:00:00on 23rd of July 2024 Union Finance
- 00:00:03Minister nirmala sitaraman presented the
- 00:00:04union budget for the financial year 2024
- 00:00:072025 now this is her seventh consecutive
- 00:00:10budget presentation and the first budget
- 00:00:12presentation of the new government which
- 00:00:14was formulated after the general
- 00:00:15elections of 2024 hence it becomes even
- 00:00:18more important because this budget will
- 00:00:20lay the outline for the workings of the
- 00:00:22government for the next 5 years and will
- 00:00:24also show the path to the government for
- 00:00:26the next consecutive four budgets which
- 00:00:29is why this budget becomes very very
- 00:00:30important for us to understand now
- 00:00:32honorable prime minister Narendra Modi
- 00:00:34has praised this budget and said that
- 00:00:36this budget is for all sections of the
- 00:00:38society and will help India in becoming
- 00:00:40a wxit bat by the year 2047 so we help
- 00:00:43in developed India by 2047 when India
- 00:00:46completes 100 Years of its independence
- 00:00:48however former Finance Minister pamam
- 00:00:51while highlighting the criticisms of the
- 00:00:52budget said that this budget fails to
- 00:00:54assure to the people of India that how
- 00:00:56inflation would be controlled in the
- 00:00:58country and he also highlighted the
- 00:01:00concerns in relation to unemployment
- 00:01:02situation in our country and said that
- 00:01:04this budget gives too little for
- 00:01:06improving the condition of
- 00:01:08unemployment now as always many quarters
- 00:01:11have praed this budget for different
- 00:01:13aspects and several other quarters have
- 00:01:15criticized this budget highlighting some
- 00:01:17missed opportunities and lack of
- 00:01:19importance given to certain sectors so
- 00:01:21what the budget of 2024 is all about
- 00:01:24what are the changes highlights and
- 00:01:26initiatives introduced in the budget
- 00:01:28what are the positives and negatives of
- 00:01:29of the budget and all the other
- 00:01:31analytical aspects which we need to know
- 00:01:33in relation to the budget we'll be
- 00:01:34trying to understand in this particular
- 00:01:36session hello my name is pretal Singh
- 00:01:38and today we would be analyzing the
- 00:01:40budget of 2024 now let's start from the
- 00:01:42very Basics and let us try to understand
- 00:01:44that what does this term government
- 00:01:46budget means so budget is a forecast of
- 00:01:49the government's expenditure and revenue
- 00:01:51for the coming next year the first
- 00:01:53budget of pre-independent India was
- 00:01:55presented in the year 1816 by the person
- 00:01:57named as James Wilson of the British
- 00:02:00Indian government now after Independence
- 00:02:02India's first budget was presented in
- 00:02:041947 by the then Finance Minister RK
- 00:02:07Shan mukham chti Union budget is
- 00:02:09presented every year on 1st of February
- 00:02:11by the Finance Minister in Lok SAA
- 00:02:13however the union budget for 2024 20125
- 00:02:16was presented on 23rd of July 2024 the
- 00:02:19reason is that interim budget was
- 00:02:21presented in February 2024 and why this
- 00:02:24was the case because this year was the
- 00:02:26year of general elections now as per
- 00:02:28article 112 the president shall in
- 00:02:31respect of every Financial year causes
- 00:02:33to be laid before both the houses of the
- 00:02:35parliament a statement of the estimated
- 00:02:37recepts and expenditure of the
- 00:02:39government of India for the year in that
- 00:02:41part it is referred to as annual
- 00:02:43financial statement so budget is known
- 00:02:45as annual financial statement as per the
- 00:02:47article 112 of Indian constitution so
- 00:02:50interesting thing to note here is that
- 00:02:52the term budget does not find any
- 00:02:54mention in the constitution of India and
- 00:02:56what is mentioned in the constitution of
- 00:02:57India the annual financial statement now
- 00:03:00theoretically speaking if you have to
- 00:03:01understand the classification of a
- 00:03:03budget budget is classified under two
- 00:03:05categories one is the revenue budget
- 00:03:07another is the capital budget now the
- 00:03:08revenue budget deals with the regular
- 00:03:10reips and the regular expenditure of the
- 00:03:12government and the capital budget it
- 00:03:14deals with basically the assets and
- 00:03:15liabilities and changes in the assets
- 00:03:17and liabilities in relation to the
- 00:03:19government we'll understand how it is
- 00:03:21the case if we see the revenue budget it
- 00:03:23is divided again under two categories
- 00:03:25one is revenue receips another is
- 00:03:27revenue expenditure now Revenue receips
- 00:03:29in involves the incomes or the recepts
- 00:03:31of the government in relation to its
- 00:03:33ordinary course of governance so these
- 00:03:35recepts does not create any liability
- 00:03:37and does not lead to reduction of any
- 00:03:39assets of the government of India and
- 00:03:40they are in turn classified into tax and
- 00:03:43non-t tax reips and on the other hand
- 00:03:45Revenue expenditure is the expenditure
- 00:03:47incurred by the government of India in
- 00:03:49its day-to-day functioning in its
- 00:03:51regular day-to-day
- 00:03:52functioning now this expenditure does
- 00:03:54not lead to creation of any asset and
- 00:03:56does not lead to reduction of any
- 00:03:58liability as and this is what the
- 00:04:00revenue budget entails the other part of
- 00:04:02the budget is the capital budget and
- 00:04:04capital budget again is classified under
- 00:04:06two heads one is the capital receips and
- 00:04:08one is capital expenditure now Capital
- 00:04:11receips are the receips which creates
- 00:04:13any form of liability for the government
- 00:04:15or leads to reduction of any assets of
- 00:04:17the government so for example loans they
- 00:04:18create liability for the government so
- 00:04:20are capital receips or for example
- 00:04:22disinvestment they lead to reduction of
- 00:04:24assets for the government and that is
- 00:04:25why they are part of capital reips
- 00:04:28another part is capital expendition
- 00:04:30now any expenditure which leads to
- 00:04:32creation of any asset or reduction of
- 00:04:34any liability of the government of India
- 00:04:36is what we call as capital expenditure
- 00:04:38for example repayment of loans it leads
- 00:04:40to reduction of liability for the
- 00:04:41government and hence it is a capital
- 00:04:43expenditure or creation or money spent
- 00:04:46on building roads building Railways it
- 00:04:48leads to creation of assets for the
- 00:04:49government of India and hence again it
- 00:04:51is a capital expenditure so again this
- 00:04:53is what the capital part of the budget
- 00:04:55entails and there is a budget division
- 00:04:58under the Department of Economic affairs
- 00:04:59which is really having the task of
- 00:05:01preparation of the Union budget now
- 00:05:03budget is presented by the union Finance
- 00:05:05Minister consisting of two parts Part A
- 00:05:08and Part B so basically part A is the
- 00:05:11macroeconomic part of the budget where
- 00:05:13new schemes and priorities of the
- 00:05:15government are announced and allocation
- 00:05:17to different sectors are made Part B
- 00:05:20deals with the finance bill which
- 00:05:22basically contains taxation proposal and
- 00:05:24how the government would be taxing the
- 00:05:26public of India or the people of India
- 00:05:28in relation to income tax that is direct
- 00:05:30access and indirect access now major
- 00:05:32budget documents apart from the finance
- 00:05:34Minister's budget speech which are
- 00:05:36presented to the parliament are the
- 00:05:38annual financial statement under the
- 00:05:39article 112 demand for Grants under
- 00:05:42article 113 finance bill under article0
- 00:05:46and fiscal policy statements which are
- 00:05:48mentioned under the F frbm Act of 2003
- 00:05:51that is fiscal responsibility and budget
- 00:05:53management Act of 2003 now under that
- 00:05:55there are two basic statements first is
- 00:05:57the macroeconomic framework statement
- 00:05:59and and another is the medium-term
- 00:06:00fiscal policy come fiscal policy
- 00:06:03strategy statement now very interesting
- 00:06:05thing to note here is that before the
- 00:06:06year 2016 there were two separate
- 00:06:09budgets which were presented in the
- 00:06:10parliament one was the General budget
- 00:06:12and another was the railway budget and
- 00:06:14this practice for separate Railway
- 00:06:15budget was started in the year
- 00:06:171924 and was done on the recommendation
- 00:06:20of awwards committee however in 2016 a
- 00:06:23committee composed of B de Bry and Kish
- 00:06:26Desai suggested and recommended that
- 00:06:28this exercise should scrapped so on 21st
- 00:06:31of September 2016 the railway budget was
- 00:06:34merged with the general budget and from
- 00:06:362017 onwards only single budget that is
- 00:06:38the general budget was presented before
- 00:06:40the parliament of India now if you have
- 00:06:42to understand the entire process of
- 00:06:44budgeting in our country it can broadly
- 00:06:46be divided under five different steps
- 00:06:49first step is when the budget is
- 00:06:50presented in the Locs SAA second is the
- 00:06:52general discussion on the budget in both
- 00:06:54of the houses third is when the standing
- 00:06:57committees they scrutinizes individual
- 00:06:59min demand for Grants the fourth step is
- 00:07:02the detailed discussion and voting on
- 00:07:04demand for grants in the Lo SAA and last
- 00:07:07stage is the appropriation and the
- 00:07:08finance bill passing so it is the stage
- 00:07:10where the appropriation bill and the
- 00:07:12finance bill is passed by the parliament
- 00:07:14of India and budget is deemed to be
- 00:07:15passed by the country so the printing of
- 00:07:18the budget basically starts one week
- 00:07:20before the presentation of the budget in
- 00:07:21the Parliament and it starts with the
- 00:07:23halwa ceremony where halwa is prepared
- 00:07:25in large quantities and is served to the
- 00:07:27officials and the support staff which
- 00:07:29were involved in making the budget now
- 00:07:31this halwa ceremony also starts the
- 00:07:33lockin period for the finance ministry
- 00:07:35staff where they cannot come in contact
- 00:07:37with the outside world now earlier this
- 00:07:39lockin period lasted for long it lasted
- 00:07:41for 2 weeks or 3 weeks now it just lasts
- 00:07:44for one week because of the digital
- 00:07:46presentation of the budget and
- 00:07:47requirement of the budget not to be
- 00:07:49printed more on 1st of February 2021
- 00:07:52Finance Minister Nala siar Raman
- 00:07:54presented the first paperless budget of
- 00:07:56Independent India she took a digital
- 00:07:58tablet which was wrapped in a bik Kata
- 00:08:01styled Bouch and it was considered as a
- 00:08:03move to strengthen the movement of
- 00:08:05digital India in our country now as the
- 00:08:07established tradition Finance Minister
- 00:08:09first meets the president and asks for
- 00:08:11the ENT of the president in the
- 00:08:12rashtrapati bav before leaving for the
- 00:08:14parliament for the presentation of the
- 00:08:15budget also a meeting of the Union
- 00:08:18cabinet is also held at 10:00 a.m. in
- 00:08:20the morning on 1st of February and after
- 00:08:22getting know from the cabinet Finance
- 00:08:24Minister then presents the budget in the
- 00:08:25parliament now since we have in-depth
- 00:08:28understanding of the annual Finance
- 00:08:29statement or the union budget of India
- 00:08:31let us try to analyze the union budget
- 00:08:33of 2024
- 00:08:352025 now first thing which we need to
- 00:08:38understand is that this particular
- 00:08:39budget is built on the road map of vixit
- 00:08:42bhat that is developed India by the year
- 00:08:442047 and primarily this budget will be
- 00:08:47focusing on four major costs that is
- 00:08:49women youth poor and farmers and this
- 00:08:52was also highlighted in the speech of
- 00:08:54the Union Finance Minister as well and
- 00:08:56also the budget theme is under four
- 00:08:58different Cate categories that is
- 00:09:00employment Skilling msmes and middle
- 00:09:03class as well also this particular
- 00:09:05budget has highlighted nine key priority
- 00:09:07areas which our country would be
- 00:09:09focusing in the next one year and where
- 00:09:11the major outlay of the government would
- 00:09:12be the first priority area is the
- 00:09:15productivity and resilience in the
- 00:09:16agriculture sector so agriculture sector
- 00:09:18is the first priority area second is the
- 00:09:20employment and Skilling third is the
- 00:09:22inclusive and human resource development
- 00:09:25which also involves social justice
- 00:09:27fourth is manufacturing and service
- 00:09:29sector fifth is the Urban Development
- 00:09:32sixth is energy security seventh is the
- 00:09:34focus on infrastructure development
- 00:09:36eighth is the focus on Innovation
- 00:09:38research and development in the country
- 00:09:39and last but not the least is the focus
- 00:09:41on Next Generation reforms for our
- 00:09:43country all these key priority areas
- 00:09:46combined together will lead to our
- 00:09:48country becoming developed by the year
- 00:09:492047 and that is what our budget also
- 00:09:52entails and focuses on now in all these
- 00:09:54key priority areas there have been
- 00:09:56several new initiatives which have been
- 00:09:57announced by the government of India if
- 00:09:59we talk about the first priority area
- 00:10:01that is agriculture sector in
- 00:10:03agriculture sector the government would
- 00:10:04primarily be focusing on transforming
- 00:10:06agricultural research transforming
- 00:10:08research and development in the
- 00:10:09agriculture sector and also focusing on
- 00:10:11vegetable production and the Supply
- 00:10:13Chain management in this particular
- 00:10:15sector also additional to this close to
- 00:10:17109 High yielding variety of climate
- 00:10:20resilient varieties of 32 horiculture
- 00:10:22crops will be released for the
- 00:10:24cultivation of the farmers and also onek
- 00:10:27Farmers would be initiated into natural
- 00:10:29farming in our country now natural
- 00:10:32farming as you know is very climate
- 00:10:33friendly and is also very much important
- 00:10:36for climate goals which our country has
- 00:10:38set now government is coming with a new
- 00:10:40centrally sponsored scheme for Skilling
- 00:10:42the Youth of our country if you remember
- 00:10:43we are already having skill India
- 00:10:45program working in our country
- 00:10:46additional to this a new initiative
- 00:10:48would be coming up with the motive of
- 00:10:49Skilling 20 lakh youths in our country
- 00:10:52in the next 5 years and also close to
- 00:10:541,000 industrial training institutes
- 00:10:56will be reamed and remade also the
- 00:10:58course content and the design and the
- 00:11:00curriculum of the courses will also be
- 00:11:02changed suiting the industry demands
- 00:11:04also a new scheme for the internship in
- 00:11:06top 500 companies for one CR youth in
- 00:11:09our country will also be launched so it
- 00:11:11is basically a new internship scheme for
- 00:11:14the Youth of our country which will be
- 00:11:15sponsored by the government and
- 00:11:17additional to this three more schemes in
- 00:11:19relation to those who are joining the
- 00:11:20job for the first time second scheme for
- 00:11:22the job creation in the manufacturing
- 00:11:24sector and third scheme to support the
- 00:11:26employers would also be launched in the
- 00:11:28coming year now coming to the third
- 00:11:30priority area in relation to inclusive
- 00:11:32human resource development and social
- 00:11:34justice now to ensure this government
- 00:11:36has come up with the concept of purvia
- 00:11:38that is vikas b vasad b it is basically
- 00:11:41a plan for Endor rich areas in our
- 00:11:43country to generate economic growth to
- 00:11:46attain vixit bat by 2047 and allocation
- 00:11:49of close to 3 lakh cres for women and
- 00:11:51children in our country would also
- 00:11:53promote social justice in our country in
- 00:11:55a holistic way and also for the
- 00:11:57northeastern region in our country to
- 00:11:58boost Financial inclusion in the region
- 00:12:00and to boost connectivity close to 100
- 00:12:03Indian post payment banks will be
- 00:12:04constructed or will be made now in
- 00:12:07relation to the manufacturing and
- 00:12:08services as well credit guarantee scheme
- 00:12:10for msmes will be announced new
- 00:12:12assessment model for msme credit will be
- 00:12:14announced mudra loans limit has been
- 00:12:16enhanced to 20 lakh from the current 10
- 00:12:18lakh Rupees and also several other
- 00:12:20opportunities in relation to internship
- 00:12:22has also been promoted to ensure
- 00:12:24manufacturing and the service sector of
- 00:12:26our country becomes robust now in
- 00:12:27relation to the Urban Development there
- 00:12:29have been changes made in the stam Duty
- 00:12:31and the government of India has
- 00:12:32encouraged the states to lower stamp
- 00:12:34Duty for the properties purchased by
- 00:12:36women also the government of India is
- 00:12:39envisioning a scheme to develop 100
- 00:12:41weekly huts and street food hubs in the
- 00:12:43select cities also there have been
- 00:12:44changes made in relation to Transit
- 00:12:46oriented development water management
- 00:12:48and pradhanmantri AAS yoga Urban 2.0 as
- 00:12:51well now in relation to energy security
- 00:12:53as well there have been several
- 00:12:54initiatives with private sector and
- 00:12:56nuclear energy as well whether it be
- 00:12:58bhat small reactor or whether it be
- 00:13:00promotion of R&D of the bat small
- 00:13:02modular reactor and newer Technologies
- 00:13:04for the nuclear energy as well Pumped Up
- 00:13:06Storage policies there then a USC
- 00:13:08thermal power plants and energy audit
- 00:13:11and PM suar mu B Yoga has been envisaged
- 00:13:14in this particular budget now in
- 00:13:16relation to the infrastructure sector
- 00:13:18close to 11.11 lakh that is 3.4% of the
- 00:13:22GDP has been provisioned by the
- 00:13:23government of India also several
- 00:13:25initiatives to promote irrigation and
- 00:13:27flood mitigation and tourism in our
- 00:13:29country have also been introduced in the
- 00:13:30budget of 2024 in relation to the
- 00:13:33Innovation research and development as
- 00:13:34well there have been operationalization
- 00:13:37of anusandhan national research fund for
- 00:13:39basic research and prototype development
- 00:13:41as well and also the private sector
- 00:13:43driven approach and innovation has been
- 00:13:46there in the union budget as well and in
- 00:13:48relation to the Next Generation reforms
- 00:13:50rural and urban land related reforms
- 00:13:52have been initiated by the government of
- 00:13:54India it might include the unique land
- 00:13:56partiel identification number or bhadar
- 00:13:58for all the land and several other land
- 00:14:00record measures and land reform measures
- 00:14:02as well also the provision of NPS Vela a
- 00:14:06plan for the contribution by the parents
- 00:14:08and Guardians for the minor or whether
- 00:14:09it be the changes in the new pension
- 00:14:11scheme all the things have been
- 00:14:12initiated in the budget of
- 00:14:142024 now since we have understood that
- 00:14:17what all measures the government has
- 00:14:19taken in relation to all the nine key
- 00:14:21priority areas one more thing which I'd
- 00:14:23like to add here is now if you want to
- 00:14:25understand all these initiatives of nine
- 00:14:27key priority areas in bit more detail we
- 00:14:30have attached a PDF in the description
- 00:14:32section of this particular video you can
- 00:14:34use the PDF and understand more about
- 00:14:36the budget
- 00:14:3720124 and now since we have understood
- 00:14:39all these things let us try to make
- 00:14:41sense of different statistics which are
- 00:14:43mentioned in the budget of 20124 and let
- 00:14:46us try to analyze those statistics as
- 00:14:47well now as you would remember initially
- 00:14:50I told you there are two parts of the
- 00:14:51budget one is the capital budget and one
- 00:14:53is the revenue budget now Revenue budget
- 00:14:55and the capital budget basically are
- 00:14:57having two components again that is
- 00:14:59expenditure component and receipts
- 00:15:01component so let us start one by one let
- 00:15:03us look at the expenditure first and
- 00:15:05then we will look at the receipts so the
- 00:15:07budget expenditure for the year 2024
- 00:15:092025 is close to 48.2 lakh crores which
- 00:15:13is basically
- 00:15:1588.5% higher than that of previous year
- 00:15:18out of this 48.2 lakh cres 37.1 lakh is
- 00:15:22the revenue expenditure which again
- 00:15:24means the routine expenditure which is
- 00:15:26done on the day-to-day workings of the
- 00:15:28government which includes salaries
- 00:15:29pensions or any other expenditure of the
- 00:15:31government which is of day-to-day
- 00:15:33activity and additional 11.11 lakh cros
- 00:15:36is the capital expenditure of the
- 00:15:38government of India which we also call
- 00:15:39as capex that is money spent by the
- 00:15:41government of India on creation of
- 00:15:43various assets for example building dams
- 00:15:46roadways Railways ports buildings and
- 00:15:49several other asset classes as well now
- 00:15:51if we see the budget allocation to
- 00:15:52different Ministries that is the
- 00:15:54expenditure incurred on different
- 00:15:55Ministries the defense Ministry gets
- 00:15:57close to 6.2 lakus the road transport
- 00:16:00and Highway Ministry it got close to
- 00:16:022.78 lakus railway Ministry got close to
- 00:16:062.55 lakos and few other important
- 00:16:08Ministries like Agriculture and farmer
- 00:16:10welfare got allocated 1.32 lakos or the
- 00:16:14Ministry of Education was allocated 1.2
- 00:16:16lakh and Ministry of Health and Family
- 00:16:18welfare got close to
- 00:16:219,959 cres now all these data sets at an
- 00:16:25approximate value are important for us
- 00:16:27to understand and to know as as well and
- 00:16:29also one very interesting thing to note
- 00:16:31here is that the interest payments
- 00:16:33account for close to 24% of the total
- 00:16:36expenditure of the government of India
- 00:16:38now since we have understood the total
- 00:16:39expenditure that is the budget
- 00:16:41expenditure let us move towards budget
- 00:16:43receips that is the money which the
- 00:16:45government receives now what you have to
- 00:16:47understand here is that all these datas
- 00:16:49are the projected expenditure and the
- 00:16:51projected receipts of the government of
- 00:16:52India for the coming Financial year that
- 00:16:54is the financial year of 2024 and 2025
- 00:16:58so all these dat datas are projected
- 00:17:00after that there will be datas released
- 00:17:02for the actual classification now in the
- 00:17:04next year the actual data the actual
- 00:17:06reips and the actual expenditure data
- 00:17:08will also be released by the government
- 00:17:09of India all these datas which we are
- 00:17:11studying right now are the projected
- 00:17:12datas the total recepts of the
- 00:17:14government of India expected in this
- 00:17:16financial year is close to 32.7 lakh
- 00:17:19Euros which is 15% more than the last
- 00:17:21year and out of this 32.7 lakh Ros close
- 00:17:25to 31.2 N lakh Ros is the revenue
- 00:17:28receipts
- 00:17:29that means it includes tax revenues like
- 00:17:31income tax corporation tax indirect tax
- 00:17:33and several other taxes as well and
- 00:17:35close to 78,000 crores is in the form of
- 00:17:38capital recepts that is in relation to
- 00:17:40changes in assets and liabilities of the
- 00:17:42government now first of all let us see
- 00:17:44the taxation part separately the gross
- 00:17:46tax revenue of the government is
- 00:17:48projected to be close to 38.4 lakh so
- 00:17:5210.2 L cor out of this whole amount
- 00:17:54would be received by the government of
- 00:17:56India in the form of corporation tax
- 00:17:58close to 11.87 lakh would be received by
- 00:18:02the government in relation to the taxes
- 00:18:03on income that is income tax and close
- 00:18:06to 10.6 lakh is the expected Revenue out
- 00:18:09of the goods and services tax for the
- 00:18:11government of India and additional to
- 00:18:13this the revenue from the customs and
- 00:18:15the excise duties will also be there now
- 00:18:17if we see very closely we understood
- 00:18:20that 48.2 lakh will be the total
- 00:18:22expenditure that is the total budget
- 00:18:24expenditure and 32.7 lakh cres will be
- 00:18:27the total receips of the government that
- 00:18:29is the budget recepts of the government
- 00:18:30now what we can see clearly and what we
- 00:18:33can observe clearly here is that the
- 00:18:34expenditure of the government of India
- 00:18:36is higher a lot lot higher than that of
- 00:18:39the recepts of the government of India
- 00:18:41that means the money which the
- 00:18:42government of India would be spending is
- 00:18:44much higher than what the government of
- 00:18:45India would be receiving which clearly
- 00:18:48shows and which clearly means that
- 00:18:49government of India needs to borrow the
- 00:18:52additional money for meeting its
- 00:18:53expenditure and that borrowed money is
- 00:18:56what we call as fiscal deficit so the
- 00:18:58difference between 48.2 lak and 32.7 lak
- 00:19:03is close to 16.13 lak and this 16.13
- 00:19:07lakh becomes the total borrowings which
- 00:19:10the government has to make in order to
- 00:19:12ensure that they meet its expenditure
- 00:19:14and this 16.13 lakh row will be the
- 00:19:17fiscal deficit of our country now in
- 00:19:19simple terms fiscal deficit basically
- 00:19:22refers to the excess of expenditure in
- 00:19:24relation to the receips of the
- 00:19:25government so it is the amount by which
- 00:19:28the government expenditure exceeds the
- 00:19:30government's receipts in a particular
- 00:19:32fiscal year or a particular Financial
- 00:19:33year and it indicates the total
- 00:19:36borrowings which the government has to
- 00:19:38make now you must have heard of a very
- 00:19:39famous act that is fiscal responsibility
- 00:19:42and budget management Act of 2003 that
- 00:19:44is fbm act of 2003 now it requires the
- 00:19:47government of India to progressively
- 00:19:49reduce its fiscal deficit levels and it
- 00:19:51is having certain targets which the
- 00:19:53government of India has to achieve in
- 00:19:55the coming few years in order to contain
- 00:19:57its fiscal deficit the estimated fiscal
- 00:19:59deficit for the year 2024 2025 would be
- 00:20:03close to 4.9% of the GDP now whereas the
- 00:20:06actual fiscal deficit for the last year
- 00:20:08was close to 5.6% of the GDP also if you
- 00:20:11remember in the year 2021 the fiscal
- 00:20:14deficit of our country was close to
- 00:20:1799.2% and now since it is 4.9% for the
- 00:20:20projected next year we have come a long
- 00:20:22way and we have improved our fiscal
- 00:20:24deficit position because of fiscal
- 00:20:26consolidation and fiscal Prudence in our
- 00:20:28country and if you continue doing this
- 00:20:30the government of India will reach the
- 00:20:32fbm target of 3% fiscal deficit by the
- 00:20:34year 2028 now also additional to the
- 00:20:37fiscal deficit the projected Revenue
- 00:20:39deficit would be 1.8% and the projected
- 00:20:42primary deficit would be close to 1.4%
- 00:20:45of the GDP now the revenue deficit is
- 00:20:47very simple it is basically the amount
- 00:20:50to which Revenue expenditure exceeds the
- 00:20:51revenue receipts however primary deficit
- 00:20:54basically involves fiscal deficit minus
- 00:20:56the interest payments so in reality it
- 00:20:58basically shows the government's total
- 00:21:00borrowing excluding the interest
- 00:21:02payments or excluding the interests now
- 00:21:05all these datas if we see very
- 00:21:07objectively they are very very important
- 00:21:09for our understanding for our
- 00:21:11examination and for our analytical
- 00:21:13perspective as well now if we see the
- 00:21:15reforms of Taxation in relation to
- 00:21:17taxation several reforms have also been
- 00:21:18initiated by the government in this
- 00:21:20Union budget 2024 first change is in
- 00:21:22relation to the income tax rate slabs
- 00:21:25now in your screen you'll be seeing the
- 00:21:26new regime for the income tax slabs in
- 00:21:28our country which have been introduced
- 00:21:29by this particular budget now additional
- 00:21:31to this the Finance Minister has
- 00:21:33announced a comprehensive review of the
- 00:21:35Income Tax Act of 1961 to make it more
- 00:21:38clear concise easy to read and efficient
- 00:21:42the aim is to reduce disputes reduce
- 00:21:44litigations and to ensure tax certainty
- 00:21:47for the taxpayers which is very very
- 00:21:48important for a country which is aiming
- 00:21:50to become developed by the year 2047 the
- 00:21:52government has also introduced viad
- 00:21:54vishwas scheme 2024 for resolution of
- 00:21:57income tax disputes and pending appeals
- 00:21:59which are ongoing and also one more
- 00:22:01critical change because of which the
- 00:22:03government has been criticized from
- 00:22:04several quarters is the change in the
- 00:22:06short-term and long-term capital gains
- 00:22:08tax now first of all let us try to
- 00:22:10understand what is this capital gains
- 00:22:11term so capital gains is basically a
- 00:22:13economic concept which deals with the
- 00:22:15profit earned of the sale of an asset
- 00:22:17over a period of time when its value has
- 00:22:20increased now these capital gains can
- 00:22:22either be short-term or can be long-term
- 00:22:24depending on the holding period And
- 00:22:26there are several classifications to it
- 00:22:28as well based on different asset classes
- 00:22:30in the budget of 2024 the tax on
- 00:22:33long-term capital gains has been
- 00:22:35increased from 10% which was earlier
- 00:22:37present to
- 00:22:3812.5% so the long-term capital gains tax
- 00:22:41will now be
- 00:22:4212.5% also short-term capital gain tax
- 00:22:45have been increased from 15% to 20% so
- 00:22:48now the short-term capital gains tax
- 00:22:50will be 20% of the capital gains now
- 00:22:53this move has been criticized from
- 00:22:55several quarters from the different
- 00:22:56business groups from the stock market
- 00:22:58experts and from common people as well
- 00:23:01complaining that this might reduce the
- 00:23:02investors confidence and might
- 00:23:04demotivate the investors to invest in
- 00:23:07capital Assets Now Shan shetti who MD at
- 00:23:10Primus Partners has said that increase
- 00:23:12in the long-term capital gains tax might
- 00:23:15lead to Investments moving to
- 00:23:17unproductive assets like gold or real
- 00:23:19estates also stock market has also
- 00:23:22reacted very negatively to these changes
- 00:23:24both sensex and Nifty indices show a
- 00:23:27significant drop on the day budget 2024
- 00:23:29was announced now comprehensively
- 00:23:31understanding this capital gains
- 00:23:33short-term and long-term capital gains
- 00:23:34tax would require a separate session of
- 00:23:36its own so do let me know in the comment
- 00:23:38section that should we have a separate
- 00:23:39session for capital gains and short-term
- 00:23:41and long-term capital gains Stacks or
- 00:23:42not now additional to this there was one
- 00:23:45more crucial change which was made that
- 00:23:47was the abolition of Angel tax now this
- 00:23:49step has been appreciated from a lot of
- 00:23:51quarters especially from the startup
- 00:23:53community of our country now the major
- 00:23:55aim of the government to take this step
- 00:23:57is to bolster the startup ecosystem in
- 00:23:59our country now let us understand what
- 00:24:01is this Angel tax Angel tax is basically
- 00:24:03the tax imposed by the government on
- 00:24:05funding received by the unlisted
- 00:24:07companies or the startups now if the
- 00:24:09investment received by the startup is
- 00:24:12greater than the fair market value then
- 00:24:14the angel tax comes into play and it was
- 00:24:16levied at a hefty rate of 30% and has
- 00:24:19now been abolished also the corporate
- 00:24:22tax for the foreign companies has been
- 00:24:24reduced from 40% to 35% again which is a
- 00:24:27appreciable move now one more change
- 00:24:29because of which the budget has been
- 00:24:30criticized a lot is the increase in the
- 00:24:32Securities transaction tax by the
- 00:24:34government of India so security
- 00:24:36transaction tax is the tax payable on
- 00:24:38the Securities transacted in a
- 00:24:40recognized Stock Exchange in our country
- 00:24:42so security transaction tax on Futures
- 00:24:44have been increased to 0.02% and on
- 00:24:47options it has been increased to 0.1%
- 00:24:50now ashir grower the founder and ex
- 00:24:52managing director of bat pay has said
- 00:24:54that this budget lacks the spine and
- 00:24:56juice to bolster our economic growth to
- 00:24:5813 or 14% a year he also remarked that
- 00:25:01if the budget was not announced at all
- 00:25:03still India is having the ability to
- 00:25:04grow at a 6 to 7% growth rate every year
- 00:25:07uh of the new government right so is the
- 00:25:09first out of the 5 years and uh what
- 00:25:12your expectation is that you will take
- 00:25:14some strong decisions in the in the
- 00:25:16first one because that gives you the
- 00:25:18political leeway in some sense from a 7%
- 00:25:21GDP which we can achieved without any
- 00:25:23budget being announced to an actual 12
- 00:25:2515% GDP growth hence the budget's role
- 00:25:28is to amplify things and to take the 6
- 00:25:307% growth rate to 13 14% growth rate a
- 00:25:33year this is what he had to say now many
- 00:25:36experts believe that government's action
- 00:25:38or the government's step of taxing more
- 00:25:40spending more and borrowing more is not
- 00:25:42a very good step experts suggests that
- 00:25:45more money should be left at the
- 00:25:47disposal of the private businesses so
- 00:25:49that they can create more jobs either
- 00:25:50they could spend the money for
- 00:25:51consumption or they could spend the
- 00:25:53money for investments in both of the
- 00:25:55cases job creation will tremendously
- 00:25:57increase and if players are having more
- 00:25:59investable Surplus with them definitely
- 00:26:01they will invest the Surplus in the
- 00:26:03whole economy and eventually economic
- 00:26:05growth will Propel a sneer Grover also
- 00:26:07suggested a single tax rate in relation
- 00:26:09to income tax for our country and
- 00:26:11suggested that there should be 20% tax
- 00:26:13rate for any income earned above the
- 00:26:15tune of 10 lakh Rupees per anom he said
- 00:26:18that removal of income tax lab would
- 00:26:20make the system more effective and more
- 00:26:22efficient because these multiple income
- 00:26:24tax laabs are not doing any good to the
- 00:26:26people of our country and to the
- 00:26:27government Checker as well it is just
- 00:26:29complicating the process and also
- 00:26:31benefiting the Chartered Accountants who
- 00:26:33are charging Hefty amounts of money or
- 00:26:34Hefty fees for filing the income tax
- 00:26:37returns of the common people he also
- 00:26:39suggested that the distinction of
- 00:26:40short-term capital gains and long-term
- 00:26:42capital gains should be removed allog
- 00:26:44together and 10% capital gains tax
- 00:26:46should have been imposed on all types of
- 00:26:48capital gains to again make the system
- 00:26:50more effective and more simpler now many
- 00:26:53experts were also expecting several
- 00:26:54overhaul reforms in relation to goods
- 00:26:56and services taxs in our country but no
- 00:26:58such reforms were announced or
- 00:27:00introduced in this particular budget and
- 00:27:02a single uniform tax rate or indirect
- 00:27:04tax rate for the whole country Still
- 00:27:06Remains a distant dream also several
- 00:27:09academicians and experts have pointed
- 00:27:10out that this increase in the capital
- 00:27:12gains tax in our country would be
- 00:27:14drastically impacting our country in a
- 00:27:15negative way because there are many
- 00:27:17other countries like Singapore Dubai or
- 00:27:19many other tax Heavens which are having
- 00:27:21essentially 0% or very very low capital
- 00:27:23gain taxs so it might lead to outflow of
- 00:27:26capital from our country to these taxes
- 00:27:28Heavens now we have to understand that
- 00:27:30many people including High net worth
- 00:27:32individuals they focus a lot on return
- 00:27:35on their taxes and if the return on
- 00:27:37their taxes is negative or negligible
- 00:27:39then they would be wanting to migrate to
- 00:27:41other countries for example again
- 00:27:42Ireland Dubai Singapore macius kimman
- 00:27:46islands and several other tax Heavens as
- 00:27:48well we have covered this phenomena in
- 00:27:50detail in a separate video you can go
- 00:27:52through it for your better understanding
- 00:27:54now as always definitely there are two
- 00:27:56sides of the coin so if there are
- 00:27:57criticism and concerns there are
- 00:27:59positive aspects and praises to this
- 00:28:01budget as well now Kumar manglam B who
- 00:28:03is the chairman of AD Bera group has
- 00:28:05praised the budget 2024 for its clear
- 00:28:08intent and the focus of the government
- 00:28:10on long-term growth of our country and
- 00:28:12also building the foundations for
- 00:28:13developed India by 2047 nmal Jan who is
- 00:28:17the founder of iifl group have also
- 00:28:19praised the budget of 2024 and said that
- 00:28:21it involves a well-rounded strategy to
- 00:28:24Foster inclusive growth economic
- 00:28:26stability and improving over overall
- 00:28:28quality of life for the public of our
- 00:28:30country now do let us know in the
- 00:28:31comment section that what are your views
- 00:28:33on the budget 2024 and what would be
- 00:28:36more reforms which could have been
- 00:28:37introduced in the budget to make it more
- 00:28:39effective and efficient for our country
- 00:28:42also we have added certain practice
- 00:28:43questions at the end of this video do
- 00:28:45solve them and write the correct answers
- 00:28:47in the comment section I hope you gained
- 00:28:49A New Perspective and understanding from
- 00:28:51this video all the very best and have a
- 00:28:53nice day
- 00:29:17[Music]
- Union Budget
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- Nirmala Sitaraman
- Fiscal Deficit
- India
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