Union Budget 2024: Big boost for Bihar, focus on rural economy and unemployment

Check key highlights of Union Budget 2024. File/Pic

The announcement covers human resource development, infrastructure and the generation of economic opportunities to make the eastern region of the country covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh.

In her Budget speech in Parliament, Nirmala Sitharaman said, "On the Amritsar-Kolkata industrial corridor we will support the development of an industrial nod at Gaya in Bihar. We will also support the construction of road connectivity projects namely Patna-Purnia Expressway, Buxar-Bagalpur Expressway, Bodhgaya-Rajgir-Vaishali-Darbanga and an additional two-lane bridge over river Ganga at Buxar at a total cost of Rs 26,000 cr."

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"Power projects, including setting up of a new 2400 megawatt power plant at Pirpainti, will be taken up at a cost of Rs 21400 crore," she added.

The Finance Minister said that new airports, medical colleges and sports infrastructure in Bihar will be constructed. An additional allocation to support capital investments will be provided, she said.

The first budget under Modi 3.0 seeks an economic vision that balances fiscal prudence. This is Prime Minister Narendra Modi government's 13th straight Budget since 2014, including two interim ones.

The Union Budget focuses on supporting consumption via higher allocation for the rural economy, taxation reforms, infrastructure push, thrust on local manufacturing, job and skill creation and an increase in production-linked incentive (PLI) allocation to more labour-intensive sectors.

Youth empowerment and employment schemes
The budget outlines five major schemes aimed at benefiting 4.1 crore youth over the next five years, with a central outlay of Rs 2 lakh crore. These schemes are designed to create employment opportunities and enhance skill development among the young population.

Support for first-time employees and enterprises: A notable announcement was the provision of one-month salary support to enterprises hiring first-time employees. Additionally, a Direct Benefit Transfer (DBT) of one month's salary, up to Rs 15,000, will be provided to first-time employees, with an eligibility limit of Rs 1 lakh per month. This initiative is expected to benefit 210 lakh youth.

Employment-linked incentives
Three new schemes have been introduced to boost employment:

1. One month's wage for freshers
2. Job creation incentives in the manufacturing sector
3. Support for employers
4. These schemes are anticipated to benefit 30 lakh youth entering employment and their employers, especially with incentives tied to EPFO contributions.

Nine priorities for India's future
FM Sitharaman presented a comprehensive roadmap focusing on nine key priorities:

Agriculture, employment, inclusive development, manufacturing and services, urban development, energy security, infrastructure, innovation and R&D, next-generation reforms and energy security. Energy security was underscored as one of the nine essential priorities, reflecting the government's dedication to ensuring sustainable and reliable energy for all.

Also read: Budget Session 2024: Key highlights of Modi 3.0's first budget

Commitment to inflation control and welfare
FM Sitharaman announced that inflation is moving towards the target of 4 percent. The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) has been extended for five years, benefiting more than 80 crore people.

Focus on natural farming and agricultural research
The budget proposes to initiate 1 crore farmers into natural farming over the next two years. Additionally, agricultural research will be transformed to focus on increasing productivity and developing climate-resilient crop varieties.

FM added that the PM Garib Kalyan Anna Yojana was extended by five years, benefiting more than 80 crore people in the country. As the Modi government's focus is eyeing to support the farming community, the finance minister said, "New 109 high-yielding, climate-resilient varieties to be released to farmers. One crore farmers are to be initiated into natural farming over two years."

Measures to boost MSME sector
The government will come out with a credit guarantee scheme for MSMEs to facilitate term loans without collateral or third-party guarantee, Finance Minister Nirmala Sitharaman said on Tuesday. She also said that public sector banks to build in-house capability for credit assessment of MSMEs.

As part of a slew of measures to boost the sector, the government will reduce the turnover threshold of MSME buyers for mandatory onboarding on TReDs platform from Rs 500 crore to Rs 250 crore.

Other highlights
10,000 need-based bio-input centres to be established
Large-scale clusters for vegetable production are to be developed closer to consumption centres.
Digital crop survey for Kharif to be taken up in 400 districts in FY25
Rs 1.52 lakh crore will be set aside for agriculture, and allied sectors in FY25

(With inputs from PTI)