New Delhi: The 2024 Union Budget will set the path for those of the future, Finance Minister Nirmala Sitharaman said Tuesday as she presented her seventh budget statement in Parliament.
She highlighted nine priority areas for the Modi 3.0 government and those to follow.
These nine were - productivity and resilience in agriculture, employment and skilling, improved human resources, social justice, manufacturing and services, urban development, energy security, infrastructure, innovation, research and development, and next-gen reforms.
"The Budget envisages sustained efforts on nine priority areas for generating ample opportunities for all. Future budgets will build on these priorities of the 2024 Budget," she said.
Within these nine, she indicated the 2024 Budget will focus on four primary areas - employment, skilling, MSMEs (Micro, Small, and Medium Enterprises), and the middle class. The government, she said, will focus on schemes to benefit 4.1 crore youth over five years at an outlay of Rs 2 lakh crore.
Provision of Rs 1.48 lakh crore will be there for education, employment, and skilling, she added.
"In this budget, we particularly focus on employment, skilling, MSMEs, and the middle class. I am happy to announce a package of five schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a five-year period with an outlay of Rs 2 lakh crore."
Manufacturing And Services: MSMEs
"This Budget provides special attention to MSMEs and manufacturing, particularly labour-intensive manufacturing," the Finance Minister said as she announced new mechanisms to facilitate continuation of bank credit to MSMEs during their stress period.
She also announced financial support for 50 multi-product food irradiation units in the MSME space, which will also see e-commerce export hubs to be set up in public-private partnership mode to enable MSMEs and traditional artisans to sell their products in international markets.
The limit of Mudra loans has been increased from Rs 10 lakh to Rs 20 lakh.
READ | Credit Support For MSMEs, Mudra Loans Limit Upped To Rs 20 Lakh
Pradhan Mantri Mudra Yojana was launched in 2015 to provide loans to small and micro enterprises from commercial banks, small finance banks, and non-banking financial corporations. The government sanctioned loans worth Rs 5.4 lakh crore in the last financial year.
Employment And Skilling
Three schemes part of a special package by the Prime Minister have been announced.
Scheme A is for first-timers, Scheme B is for creation of jobs in the manufacturing sector, and Scheme C is for support to employers, Ms Sitharaman explained.
READ | "One Month Wage For First-Time Employees": Nirmala Sitharaman
Under Scheme A, there will be direct-benefit transfer of one month's salary, in three installments to a maximum of Rs 15,000, to first-time employees registering with the Employees Provident Fund Organisation, the Finance Minister said.
Under Scheme B, employees and employers will get incentives to be provided directly, as per their EPFO contributions, in the first four years of employment. Scheme C will see reimbursements to employers, up to Rs 3,000 per month for two years, towards EPFO contribution for each new staffer.
There will be a special focus on women and students, she also said, as she announced a revision of the Model Skill Loan Scheme to help 25,000 students every year.
Announcing internship promotion in top companies, the Finance Minister said one crore youth would be skilled over the next five years as part of 12-month programmes with a monthly allowance of Rs 5,000.
Productivity, Resilience In Agriculture
Rs 1.52 lakh crore will be allotted for the agriculture and allied sectors, and a National Cooperation Policy is to framed with an objective to fast-track growth of rural economy and generation of jobs.
The government will make a "strong push to one crore farmers for natural farming, supported by certification and branding", and facilitate implementation of Digital Public Infrastructure in agriculture, in partnership with states. The push for natural farming is to promote sustainable agricultural practices and reducing dependency on chemical fertilisers. Natural farming not only enhances soil health and biodiversity, but also reduces the cost of cultivation for farmers, thus increasing their profitability.
Jan Samarth-based Kisan credit cards are to be enabled in five states.
DPI application will include survey of kharif crops in 400 districts, Ms Sitharaman said.
READ | Rs 1.52 Lakh Crore For Agriculture, Allied Sectors: N Sitharaman
10,000 need-based, bio-input resource centres will be set up to assist farmers and over 100 high-yielding and climate-resilient varieties of 32 field and horticulture crops are be released for cultivation.