Capital Expenditure:

The government has significantly increased its capital expenditure to ₹11.11 lakh crore, which is 3.4% of GDP. This includes a provision of ₹1.5 lakh crore for long-term, interest-free loans to state governments for infrastructure investment .

Fiscal Deficit:

The fiscal deficit for 2024-25 is estimated at 4.9% of GDP, with a target to reduce it below 4.5% in subsequent years.

Tax Reforms:

The budget introduces a new tax slab in the new tax regime:

• No tax on income up to ₹3 lakh
• 5% tax on income between ₹3-7 lakh
• 10% tax on income between ₹7-10 lakh
• Additionally, the standard deduction for those opting for the new tax regime has been increased from ₹50,000 to ₹75,000.

MSME Support:

To support Micro, Small, and Medium Enterprises (MSMEs), the budget proposes a credit guarantee scheme that covers up to ₹100 crore per applicant. The limit for Mudra loans under the Tarun category will be increased from ₹10 lakh to ₹20 lakh.

Employment and Skilling:

The budget includes three employment-linked incentive schemes and introduces the NPS-Vatsalya plan, allowing contributions by parents or guardians for minors, which can be converted to a normal NPS account once the minor reaches adulthood.

Social Welfare Schemes:

1 crore farmers will be initiated into natural farming over the next two years, supported by certification and branding efforts. The PM Awas Yojana-Urban 2.0 will address housing needs for 1 crore poor and middle-class families with an investment of ₹10 lakh crore, including central assistance of ₹2.2 lakh crore over the next five years.

GST and Indirect Taxes:

GST has significantly reduced compliance burdens and increased the tax base. The average monthly gross GST collection has nearly doubled to ₹1.66 lakh crore this year. Import release times have also improved, reducing logistics costs and facilitating international trade.

Aviation Sector:

The number of airports has doubled to 149, with 517 new routes carrying 1.3 crore passengers. Indian carriers have placed orders for over 1,000 new aircraft.

Urban Development:

The government plans to invest heavily in urban infrastructure, with a focus on energy security, innovation, research and development, and next-generation reforms. The budget includes provisions for sustainable and resilient urban development.

This comprehensive budget aims to drive economic growth, enhance infrastructure, support MSMEs, and provide significant tax relief, all while maintaining fiscal prudence and targeting sustainable development.