EduNews-24-07-2024

Small servings, MANY PLATES

Presenting her seventh Union Budget and the first after this year's Lok Sabha election, Finance Minister Nirmala Sitharaman on Tuesday unveiled a flurry of measures aimed at fixing the woes of unemployed youth, small businesses, and the middle class, and sought to strengthen the ruling NDA coalition's bonds with support for multiple investment projects in Bihar and Andhra Pradesh.

Ms. Sitharaman proposed income tax rate cuts worth up to ₹17,500 a year, putting an extra ₹1,458 a month in the hands of these taxpayers, and hiked standard deductions for salaried taxpayers and pensioners by ₹25,000 and ₹10,000, respectively.

She also vowed to spend ₹2 lakh crore over five years on five schemes which are part of what she called "the Prime Minister's package", aimed at spurring jobs and imparting skills to 4.1 crore youth. – 01, 16

A.P. to get ₹15,000 cr. for capital Amaravati

The Union Budget spells a boost to Andhra Pradesh, with a special financial support of ₹15,000 crore for developing its capital Amaravati, besides assistance for the Polavaram irrigation project, and grants for backward regions.

"Recognising the State's need for a capital, we will facilitate special financial support through multilateral development agencies. In the current financial year, ₹15,000 crore will be arranged, with additional amounts in future years," Union Finance Minister Nirmala Sitharaman said in her Budget speech.

She said the government has made concerted efforts to fulfil the commitments in the AP Reorganisation Act. Ms. Sitharaman said the Centre would come up with a plan named 'Purvodaya' for the overall development of Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh. – 01, 16

Marginal rise for farming; fertilizer subsidies trimmed

Maintaining enhancing productivity and resilience in agriculture is her priority, Union Finance Minister Nirmala Sitharaman allocated ₹1.52 lakh crore for farming and allied sectors in the first Budget of the third term of the Narendra Modi government on Tuesday. However, fertilizer and food subsidies were decreased, inviting flak from farmer organisations.

Ms. Sitharaman announced that the Centre will review the agriculture research set-up to bring focus on raising productivity and developing climate-resilient varieties. "New 109 high-yielding and climate- resilient varieties of 32 field and horticulture crops will be released for cultivation by farmers," the Minister said. – 05

MGNREGS allocation is lower than last year's actual expenditure

Notwithstanding the BJP's significant losses in rural constituencies in the 2024 Lok Sabha election, the first Budget of the new NDA government did not contain any directional shift for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), its flagship programme for rural India.

For the financial year 2024-25, ₹86,000 crore has been allocated for the MGNREGS.

This may be ₹26,000 crores more than last year's allocation of just ₹60,000 crore, but it is still ₹19,297 crores less than the scheme's actual expenditure of ₹1.05 lakh crore in the financial year 2023-24, according to data available on the website of Union Ministry of Rural Development. – 05

Defence funds decline, BRO gets backing

Union Finance Minister Nirmala Sitharaman has allocated ₹6.22 lakh crore for the Defence Ministry in 2024-25, which is almost the same as in the interim Budget presented in February. At approximately 12.9% of the total Budget, the fund earmarked for the Defence Ministry is a full percentage point lower than last year's outlay.

"The capital outlay of ₹1,72,000 crore will further strengthen the capabilities of Armed forces. Earmarking of ₹1,05,518.43 crore for domestic capital procurement will provide further impetus to Atma nirbharta," Defence Minister Rajnath Singh said. – 06

Budget gives fresh impetus to clean energy schemes

Finance Minister Nirmala Sitharaman's Budget address on Tuesday gave a fillip to several commitments made in the interim Budget to incentivise clean energy but stopped short of announcing new schemes.

The Pradhan Mantri Surya Ghar Muft Bijli Yojna, which aims to provide subsidised rooftop solar installations to one crore households, has been allocated nearly ₹10,000 crore this year. This is more than twice the ₹4,970 crore that was spent as part of the solar power (grid). – 06

Women-friendly schemes get a push

The first Union Budget of the new Modi government saw a concerted effort at women-led development, with the finance minister Nirmala Sitharaman announcing more than ₹3 lakh crore for schemes benefiting women and girls, and promised a look at further lowering duties for properties purchased by women.

She announced a new pension scheme named 'Vatsalya'. A contributory pension scheme, this will have contributions from parents and guardians.

On the child attaining the age of majority, the plan can be converted seamlessly into a regular National Pension System (NPS) account.

The announcements include the setting up of special working women's hostels and creches in collaboration with industries to facilitate women's employment, and promoting women-specific skilling programmes and support for women's self-help groups. – 07

FM allows 10 lakh cr. for the housing scheme

To address the housing needs of the urban poor and middle-class families, the Union Finance Minister Nirmala Sitharaman has announced an investment of ₹10 lakh crore under the PM Awas Yojana-Urban 2.0, including Central assistance of ₹2.2 lakh crore in the next five years.

While tabling the Union Budget 2024-25, the finance minister said that a provision of interest subsidy to facilitate loans at affordable rates is also envisaged. – 08

New scheme to focus on uplift of tribal villages

Finance Minister Nirmala Sitharaman on Tuesday announced that the Union government will launch the PM Janjatiya Unnat Gram Abhiyaan to achieve full saturation of basic facilities among five crore Scheduled Tribe families across 63,000 villages in tribal-majority areas and aspirational districts.

The scheme, designed after the PM-JANMAN to achieve saturation of basic facilities for Particularly Vulnerable Tribal Groups, will be for Scheduled Tribe populations across the country, the Finance Minister said in her 2024-25 Budget speech on Tuesday, without going into the details of how much funds are being set aside for this or how this package would be implemented or overseen. – 08

Urban, rural land reforms by Centre; land records to be digitised with GIS mapping

The 2024-25 Union Budget presented by Finance Minister Nirmala Sitharaman promised a few reforms related to land and land use in the country ranging from their identification to planning and potentially drawing from multiple domains.

Ms. Sitharaman said "land-related reforms and actions, both in rural and urban areas, will cover land administration, planning and management, and urban planning, usage and building bylaws". According to her, these activities are to be completed in three years with "appropriate fiscal support". – 08

With ₹2.55 lakh cr. outlay, Railways to prioritise safety

The Railway Ministry has received a record allocation of over ₹2.55 lakh crore in the financial year 2024-25, a jump of 4.9% from the previous year's ₹2.43 lakh crore, show Union Budget documents.

The outlay for capital expenditure includes ₹2.52 lakh crore from general revenues, ₹200 crore from the Nirbhaya Fund, ₹3,000 crore from internal resources and ₹10,000 crore from extrabudgetary resources, bringing it up to -2.55 lakh crore.

This amount will be spent on assets, acquisitions, construction and replacement, the Budget says. - 09

Nepal, Sri Lanka, Seychelles secure more funds under Budget allocation for MEA

India-funded projects in the neighbourhood received the bulk of the allocation for the Ministry of External Affairs (MEA) in the Union Budget.

Nepal secured an allocation of ₹700 crore, which is a jump of ₹150 crore from the previous year's allocation of ₹550 crore. Sri Lanka received ₹245 crore, an improvement of ₹95 crore over last year's funding of ₹150 crore. The Seychelles, which had an allocation of 10 crore, got a boost with the infusion of ₹30 crore.

Bhutan, the largest recipient of the annual allocation under the MEA, has seen a dip in funding by ₹332.02 crore. Total funding for Bhutan this year stands at ₹2,068.56 crore. – 17

SC gives split verdict on validity of Centre's nod for GM mustard

The Supreme Court on Tuesday pronounced a split verdict on the validity of the Centre's 2022 decision granting conditional approval for the environmental release of genetically modified (GM) mustard crop.

The Bench of Justices B.V. Nagarathna and Sanjay Karol, however, asked the Centre to formulate a national policy about GM crops for research, cultivation, trade and commerce in the country. – 17

New U.K. Foreign Secretary David Lammy arrives today

In the first high-level visit by the newly elected Labour government in the United Kingdom, U.K. Foreign Secretary David Lammy will arrive on Wednesday morning for a day-long visit, where a "full reset" of ties and "economic, domestic and global security" will be at the top of the agenda, the British Foreign Office (FCDO) announced.

Mr. Lammy, who is coming to Delhi on his way to Laos for ASEAN meetings, will hold bilateral talks with External Affairs Minister S. Jaishankar.

He is expected to call on Prime Minister Narendra Modi and will hold meetings with National Security Adviser Ajit Doval and Commerce Minister Piyush Goyal as well before leaving for Vientiane on Thursday morning. Mr. Lammy is also expected to discuss plans for the new U.K. PM Keir Starmer and Mr. Modi to exchange visits. – 17

Jaishankar to attend ASEAN and Quad meetings this week

Amid the ongoing budget session, External Affairs Minister S. Jaishankar will be busy with a flurry of bilateral and multilateral meetings this week, including some with his counterparts from the U.S., U.K., Japan, Australia, China and Russia.

Mr. Jaishankar will travel to Vientiane on Thursday as Laos hosts the annual outreach meetings of the 10-nation Association of Southeast Asian Nations (ASEAN) from July 25 to 27, the Ministry of External Affairs (MEA) announced. – 17

Hamas and Fatah sign declaration in Beijing on ending rift amid Gaza war

Palestinian factions Hamas and Fatah signed a declaration in Beijing on ending a years-long rift, the groups said on Tuesday, taking a step toward resolving a deep divide which has lingered for years despite repeated attempts at unifying the sides.

The two heavyweights of Palestinian politics signed the Beijing Declaration on "ending division and strengthening Palestinian unity," according to Chinese state broadcaster CCTV, pledging to form a unity government for the Palestinian territories.

The declaration comes at a sensitive time, as the war in Gaza rages on into its 10th month and as Israel and Hamas are weighing an internationally backed cease-fire proposal that would wind down the war and free dozens of Israeli hostages held by Hamas. – 19

Blinken, Wang Yi to meet at ASEAN that will discuss Myanmar, South China Sea

Southeast Asian Foreign Ministers gather in Laos this week for talks on the disputed South China Sea and the conflict in Myanmar, with top diplomats from China and the United States slated to meet on the sidelines.

The three-day meeting of the 10-member Association of Southeast Asian Nations (ASEAN) starts in the capital Vientiane.

Antony Blinken will meet Chinese counterpart Wang Yi on the sidelines of the event at which he will "discuss the importance of adherence to international law in the South China Sea", according to the U.S. State Department. – 19

Nitish hails Budget as Bihar gets 58,900 cr.

Union Finance Minister Nirmala Sitharaman on Tuesday announced development projects worth ₹58,900 crore for Bihar in the Union Budget.

While ₹26,000 crore will be allocated for road projects, a 2,400-MW power plant will be set up in Pirpainti at a cost of ₹21,400 crore, and ₹11,500 crore will be used for flood control. – 01, 16

Angel tax on foreign investments in start-ups nixed

In a major respite to India's fledgling start-ups, Finance Minister Nirmala Sitharaman announced scrapping of the contentious angel tax on foreign investments received by such enterprises, a development that is expected to ease their funding woes.

Ms. Sitharaman introduced the measure stating that it would help "bolster the Indian start-up ecosystem, boost the entrepreneurial spirit, and support innovation". – 02

Customs Duty on gold, silver reduced to 6%

Union Finance Minister Nirmala Sitharaman has proposed to reduce Customs Duties on gold and silver to 6% and on platinum to 6.4% providing big relief to buyers of these precious metals. As per the proposal, duty on gold bars has been cut from 15% to 6%, gold dore from 14.355 to 5.35%, for platinum from 15.4% to 6.4%, for silver bars from 14.35% to 6% and for silver dore from 14.35 to 5.35%.

The significant duty cuts would help reduce smuggling and cost the government an annual revenue loss of сгоге 28,000 based on FY24 import levels, said Ajai Srivastava of Global Trade Research Initiative. – 03

Budget proposes tech platform to boost IBC, more NCLTS

Finance Minister Nirmala Sitharaman has proposed to set up an integrated technology platform to improve outcomes under the Insolvency & Bankruptcy Code (IBC) for achieving transparency, consistency, timely settlement and better oversight of all resolution cases.

She also said the government would set up additional National Company Law Tribunals (NCLTs) to expedite resolution of cases under the IBC. – 03

Five new schemes to aid job creation

The Union Budget has proposed five schemes with an outlay of ₹2 lakh crore to generate jobs for the youth.

Union Finance Minister Nirmala Sitharaman said the Centre will implement three schemes for "employment- linked incentive" as part of the Prime Minister's package.

"These will be based on enrolment in the Employees' Provident Fund Organisation (EPFO), and focus on recognition of first-time employees, and support to employees and employers," she said. – 04

3 cancer drugs exempted from customs duty

Union Finance Minister Nirmala Sitharaman on Tuesday announced the exemption of customs duty on three cancer treatment drugs Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.

The total outlay for the health sector was 89,287 crore, amounting to 1.85% of the Budget expenditure, marginally up from 1.76%, and ₹79,221 crore in the Revised Estimates for Budget 2023-24. This remains below the 2% mark for health outlays from FY18 to FY22. – 04

Credit support for MSMES; Mudra loan limit raised to ₹20 lakh

The Union Budget has a package of support measures for the micro, small, and medium enterprises (MSMEs) and the labour-intensive manufacturing sector.

According to the Economic Survey tabled on Monday, the contribution of MSMEs to all-India manufacturing output in FY22 was 35.4% and the share of MSME-made products in exports in FY24 was 45.7%.

"This Budget provides special attention to MSMEs and manufacturing, particularly labourintensive manufacturing. We have formulated a package covering financing, regulatory changes, and technology support for MSMEs to help them grow and also compete globally," Finance Minister Nirmala Sitharaman said. – 04

₹1,000-cr. venture capital fund for space start-ups

The Department of Space received a marginal rise (0.02% points) as a share of outlays in the 2024-25 Union Budget, but an 18% rise in allocation compared with Revised Estimates of FY24. The bulk of the absolute increase goes toward the development of space technologies.

The allocation increased marginally for space applications, decreased for space sciences, and almost halved for INSAT satellite systems over the budgeted amount in 2023-2024. – 05