Future Budgets To Focus On 9 Priorities Outlined In Budget 2024: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman presented the 2024 Union Budget on Tuesday, outlining a strategic plan aimed at shaping the future through focused investments and reforms. She highlighted nine priority areas for the Modi 3.0 government and future administrations in her seventh budget statement. These include infrastructure, innovation, research and development, next-generation reforms, social justice, manufacturing and services, employment and skilling, productivity and resilience in agriculture, employment and skilling, enhanced human resources, urban development, energy security, and manufacturing and services.

Sitharaman articulated that the 2024 Budget would build on these priorities, with a particular focus on four primary areas: employment, skilling, MSMEs (Micro, Small, and Medium Enterprises), and the middle class. The budget envisions substantial efforts to generate ample opportunities for all, with a special emphasis on benefiting 4.1 crore youth over the next five years, backed by an allocation of ₹2 lakh crore. Additionally, ₹1.48 lakh crore is designated for education, employment, and skilling.

Employment and Skills Development:

As part of the budget, three new schemes are introduced under a special package by the Prime Minister, aimed at enhancing employment and skills development.

1. Scheme A targets first-time job seekers. It offers a direct-benefit transfer of one month’s salary, up to ₹15,000, in three installments for individuals registering with the Employees Provident Fund Organisation (EPFO).

2. Scheme B focuses on job creation in the manufacturing sector. It provides direct incentives to employees and employers based on their EPFO contributions during the initial four years of   employment.

3. Scheme C supports employers by reimbursing up to ₹3,000 per month for two years for EPFO contributions related to new staff hires.

Special attention will be given to women and students. The Model Skill Loan Scheme will be revised to assist 25,000 students annually. Additionally, a new internship program will be introduced, aiming to skill one crore youth over the next five years through 12-month programs, offering a monthly allowance of ₹5,000.

Enhancing Productivity and Resilience in Agriculture:

The agriculture sector will receive ₹1.52 lakh crore, alongside the formulation of a National Cooperation Policy to accelerate rural economic growth and job creation. A significant push towards natural farming is planned, with the government aiming to support one crore farmers. This initiative will involve certification and branding efforts, and the implementation of Digital Public Infrastructure (DPI) in agriculture, in collaboration with state governments.

Natural farming is expected to boost soil health, enhance biodiversity, and reduce dependency on chemical fertilizers, ultimately lowering cultivation costs and improving farmer profitability. Jan Samarth-based Kisan credit cards will be enabled in five states, and the DPI application will include a survey of kharif crops across 400 districts. Furthermore, 10,000 need-based bio-input resource centers will be established, and over 100 high-yielding and climate-resilient varieties of 32 field and horticulture crops will be released for cultivation.

MSMEs: Manufacturing and Services:

The budget provides special attention to MSMEs and labor-intensive manufacturing. Key measures include new mechanisms to ensure continued bank credit to MSMEs during periods of financial stress. Financial support will also be allocated for 50 multi-product food irradiation units within the MSME sector. E-commerce export hubs will be established in a public-private partnership mode to facilitate MSMEs and traditional artisans in accessing international markets.

The Mudra loan limit will be increased from ₹10 lakh to ₹20 lakh. The Pradhan Mantri Mudra Yojana, launched in 2015, aims to provide loans to small and micro enterprises through commercial banks, small finance banks, and non-banking financial corporations. In the previous financial year, the government sanctioned loans worth ₹5.4 lakh crore under this scheme.

Overall, the 2024 Union Budget reflects a strategic approach to foster growth and innovation across various sectors, with a strong emphasis on supporting the youth, enhancing agricultural productivity, and bolstering MSMEs. The budget sets a comprehensive roadmap for future economic development, aiming to create a robust foundation for sustained progress and opportunity.