Context– The Union Budget 2024-25, presented by Union Finance Minister, sets a visionary path for India’s economic development.  The budget focuses on the theme of “Next Generation Reforms,” aiming to boost economic growth, improve productivity, and enhance the efficiency of markets and sectors. 

Economic Policy Framework and Key Reforms

• The government will establish a comprehensive Economic Policy Framework to guide the nation’s development, focusing on increasing productivity and market efficiency.
• The framework will address all factors of production, including land, labour, capital, and entrepreneurship, with technology playing a critical role in improving total factor productivity and reducing inequality.

Implementing Next Generation

Rural Land Related Actions: These actions will facilitate credit flow and other agricultural service. It will include:

• Assignment of Unique Land Parcel Identification Number (ULPIN) or Bhu – Aadhar for all lands.
• Digitization of cadastral maps.
• Survey of map sub – divisions as per current ownership.
• Establishment of land registry.
• Linking to farmers’ registry.

Urban Land Related Actions: Land records in urban areas will be digitized with GIS mapping.

• An IT based system for property record administration, updating, and tax administration will be established.
• These will also facilitate improving the financial position of urban local bodies.

Taxonomy for Climate Finance:

• It will be developed for enhancing the availability of capital for climate adaptation and mitigation. This will support achievements of India’s climate commitments and green transition.

Foreign Direct Investment and Overseas Investment :

• Facilitate foreign direct investment
• Nudge prioritization
• Promote opportunities for using Indian Rupee as a currency for OIs.

NPS Vatsalya: It is plan for contribution by parents and guardians for minors.

• On attaining the age of minority, the plan can be converted seamlessly into a normal NPS account.

National Pension Scheme (NPS): A solution will be evolved which addresses the relevant issues while maintaining fiscal prudence to protect the common citizens.

• Services to Labour: A comprehensive integration of e-shram portals with other portals will facilitate such a one-stop solution. 
• Open Architecture Databases: For the rapidly changing labour market, skill requirements and available job roles
• Connection Mechanism: A mechanism to connect job-aspirants with potential employers and skill providers will be covered in these services.
• Shram Suvidha & Samadhan Portal: These will be revamped to enhance ease of compliance for industry and trade.

Financial Sector Vision and Strategy:

The government plans to release a strategy document outlining the future vision for the financial sector, addressing its size, capacity, and skills.

Use of Technology: The Union Government will step up adoption of technology towards digitalization of the economy.

• Achievement: Technology has been successfully used for improving productivity and bridging inequality in the Indian economy during the past 10 years.
• Public investment in digital infrastructure and innovations by the private sector have helped in improving access of all citizens, particularly the common people, to market resources, education, health and services.

Ease of Doing Business:

• To enhance ‘Ease of Doing Business’, states will be incentivized for implementation of their Business Reforms Action Plans and digitalization.
• The Union Government is already working on the Jan Vishwas Bill 2.0.

Data and Statistics:

• For improving data governance, collection, processing and management of data and statistics, different sectoral data bases, including those established under the Digital India mission, will be utilized with active use of technology tools.

Variable Capital Company Structure: 

• Legislative approval will be sought for a Variable Capital Company structure, providing a flexible financing mode for leasing aircraft and ships and supporting private equity pooled funds.

Budget Estimates 2024- 25

1.Total Receipts: ₹32.07 lakh crore (excluding borrowings)

• This figure represents the governments expected income from various sources, including taxes, disinvestments, and other non-tax revenues.

2. Total Expenditure: ₹48.21 lakh crore

• This includes all government spending, including both revenue and capital expenditures.

3. Net Tax Receipt: ₹25.83 lakh crore

• This is the amount the government expects to collect in taxes after accounting for states’ share.

4. Fiscal Deficit: 4.9% of GDP

• The fiscal deficit represents the difference between total revenue and total expenditure. The government aims to reduce this to below 4.5% in the following year, indicating a commitment to fiscal consolidation.

Conclusion:

The Union Budget 2024-25 outlines a comprehensive plan for economic growth and development, emphasizing next-generation reforms.

 By focusing on improving productivity, enhancing market efficiency, and leveraging technology, the government aims to create a robust and inclusive economic framework.

The proposed reforms across land, labour, finance, and technology sectors are designed to foster sustainable growth and ensure a prosperous future for all citizens.