The discussion on the Union Budget 2024-25, presented on July 23, will continue in both Houses of Parliament on Thursday.

The discussion on Budget of Jammu and Kashmir, 2024-25, which was also presented on Tuesday, will also continue today.

Union Minister Gajendra Singh Shekhawat, Jitendra Singh, Arjun Ram Meghwal and Kirtivardhan Singh will lay papers on the table today.

Union Minister Sukanta Majumdar is likely to make a statement regarding status of implementation of recommendations and observations contained in the 250th report of the department-related parliamentary standing committee on Home Affairs on action taken by the government on the recommendations and observations contained in the 243rd report of the committee on demands for grants (2023-24) of the Ministry of Development of North Eastern Region.

-ANI

New Delhi:

A day before his government present its first Budget in the third term, Prime Minister Narendra Modi outlined the agenda for this session with an appeal to the Opposition and a combative message.

Addressing the media on the first day of Budget session, he said many MPs have been deprived of the opportunity to raise their constituency’s issues because “negative politics” by some parties had wasted Parliament’s time. He appealed to MPs from all parties to set aside political difference and participate in constructive discussions.

In an apparent reference to the Opposition’s protests in Parliament in the session immediately after poll results, the Prime Minister said there was an attempt to “unconstitutionally silence” a government chosen by the people. “There cannot be a place in democratic traditions for attempts to gag the Prime Minister for two-and-a-half hours, and there is no remorse,” he said.

The remarks referred to the sloganeering by Opposition MPs when the Prime Minister was addressing the House during the debate on the Motion of Thanks to the President’s address.

The Prime Minister said the country is closely watching and hopes that this is session would be constructive, creative and lay the foundation to fulfil their dreams. “This is an important milestone in the glorious journey of Indian democracy. We are proud that 60 years later, a government has returned to power for the third time and is going to present its first budget of its third term,” he said.

Speaking about the Union Budget to be presented tomorrow, the Prime Minister said the government is moving forward to implement his guarantees. “This budget is an important budget of Amrit Kaal. It will outline our plan for five years and also lay the foundation for our Viksit Bharat 2047 vision,” he said. The Prime Minister also said it is a matter of pride that India is the fastest growing among large economies. “Over the past three years, the country has grown at a rate of 8 per cent. The country now has positive outlook, investment and performance. In a way, it is at the peak of opportunities and this is an important milestone in India’s development journey,” he said.

In his appeal to MPs cutting across party lines, he said they must now set aside differences and contribute to the functioning of Parliament.

“Starting from January, we fought with all our might. We told people what we had to say. Some tried to show the way, some tried to mislead. But that phase is over. The country has given its mandate. It is now the duty of all MPs that they stop fighting for their parties and fight for the country for the next five years,” he said, appealing to MPs to rise above party differences and work for the empowerment of the poor, the farmers and women.

“I am saying this with a heavy heart. After 2014, some MPs came for five years, some for 10 years, but many of them did not get an opportunity to raise issues of their constituencies or enrich the Parliament with their opinions because negative politics by some parties wasted Parliament’s time,” he said.

“Difference in opinions is not a problem, negativity is. The country does not need negativity, it needs a progressive ideology. I hope we will use this temple for democracy is a constructive manner to fulfil the dreams of people,” he said.

Union Minister of State Anupriya Patel, Ramdas Athawale and JD(U) MP Dileshwar Kamait during the all-party meeting, at Parliament House in New Delhi on July 21, 2024.
| Photo Credit: ANI

The Janata Dal (United), a key BJP ally which heads the government in Bihar, has strongly argued for a special financial package for the State to be granted during the Budget Session of Parliament that begins from July 22, since the government has already ruled out the grant of special category status. The JD(U) made its demand at Sunday’s all-party meeting.

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However, the BJP’s other major ally, the Telugu Desam Party (TDP), which is in power in Andhra Pradesh remained ambivalent on the issue, only seeking financial support from the Centre on various “legacy” issues dogging the State.

According to sources, back-channel talks are on between the BJP and its allies on this issue. With Bihar going to the polls in a year, the JD(U) has told the BJP in no uncertain terms that Bihar must get significant financial aid from the Centre for the ruling National Democratic Alliance to have a fair shot in next year’s Assembly election.

Reciprocity expected

The JD(U) already made a concession for the BJP, climbing down from its long-standing demand for special category status only. A resolution was passed at the JD(U)‘s last national executive meeting in Delhi, stating that Bihar needs either a special category status or a special financial package. The JD(U) now expects a reciprocal gesture from the BJP.

It was JD(U) leader Sanjay Jha who raised the issue during the all-party meeting. “We reiterated our demand for special category status in the meeting. Our leader and Bihar Chief Minister Nitish Kumar has addressed public rallies from Gandhi Maidan to Ramlila ground on the issue. We also said that if on some technical grounds, they are unable to accord Bihar this status, they should grant a special package. We hope that in the upcoming Budget, the government will consider it,” Mr. Jha said.

Lok Janshakti Party (Ram Vilas) president and Union Minister Chirag Paswan also raised the same demand at the all-party meet.

YSRCP-TDP tussle

Unlike the JD(U), the TDP did not explicitly spell out its demand for “special category status” or a “special package” for Andhra Pradesh, but spoke at length on the precarious economic condition that the State finds itself in. The TDP’s equivocation on the issue gave a handle to its political rivals, the YSR Congress Party, which has framed special category status as the “only solution for the development of Andhra Pradesh.”

“We want enough time, so that all the financial issues concerning Andhra Pradesh can be placed in Parliament. It is not a question of this or that demand. There are several legacy issues. We will be presenting a white paper on the dire financial condition that the State finds itself in so that every political party understands our situation,” Lavu Sri Krishna Devarayalu, the TDP’s parliamentary party leader told The Hindu.

Slamming the TDP’s attitude, YSRCP leader Vijay Sai Reddy told journalists that he had raised the need for “special category status” for Andhra Pradesh during the all-party meet. “We have been demanding special category status. It is not a new demand; we have been raising it right from the day it was promised by then-Prime Minister Manmohan Singh in the Rajya Sabha. It is the only solution for the development of Andhra Pradesh. The TDP ignoring the issue and asking for an incentive or additional funds is not acceptable,” he said.

‘No more special category States’

The Biju Janata Dal also raised the demand for special category status for Odisha during the all-party meeting. BJD leader Sasmit Patra said that was a two-decade-old demand that Odisha has been continuously pleading for. The concept of a ‘special category status’ was introduced in 1969 by the Planning Commission during the Fourth Five-Year Plan. It extends tax incentives for investors and also increases the Centre’s financial share in all centrally sponsored schemes, considerably lightening the State government’s burden. However, consecutive Finance Commissions have ruled out extending the status to any States beyond those who already enjoy it.

The full Budget for the year 2024-25 will be presented on July 23, with the Parliament session beginning a day earlier, Union Minister Kiren Rijiju announced on Saturday.

The Parliamentary Affairs minister said the Budgest session will begin on July 22 and is scheduled to end on August 12.

Hon’ble President of India, on the recommendation of Government of India, has approved the proposal for summoning of both the Houses of Parliament for the Budget Session, 2024 from 22nd July, 2024 to 12 August, 2024 (Subject to exigencies of Parliamentary Business). Union Budget,…

— Kiren Rijiju (@KirenRijiju) July 6, 2024

“Hon’ble President of India, on the recommendation of Government of India, has approved the proposal for summoning of both the Houses of Parliament for the Budget Session, 2024 from 22nd July, 2024 to 12 August, 2024 (Subject to exigencies of Parliamentary Business). Union Budget, 2024-25 will be presented in Lok Sabha on 23 July, 2024,” the minister posted on X. 

Finance Minister Nirmala Sitharaman had presented the interim Budget in February in view of the upcoming Lok Sabha elections. She will be presenting her seventh consecutive Budget, becoming the first finance minister in India’s history to do so, surpassing the previous record set by Morarji Desai.

This will be the first Budget presented during Narendra Modi’s third term as Prime Minister and also the first under him in which the BJP does not have a full majority on its own. 

Expectations from the Budget have been high and were fuelled further when President Droupadi Murmu said in her joint address that it will see “many historic steps” and accelerate the pace of reforms. 

“This Budget will be an effective document of the government’s far-reaching policies and futuristic vision. Along with major economic and social decisions, many historic steps will also be seen in this budget… “The pace of reforms will be further accelerated in tune with the aspirations of people of India for rapid development,” she had said on June 27.

For the middle and salaried classes, one of the biggest expectations is that there will be a change in the income tax structure which will leave more disposable income in their hands. 

Union Finance Minister Nirmala Sitharaman speaks during a post-budget press conference, in New Delhi, Wednesday, Feb. 1, 2023.
| Photo Credit: PTI

The government will focus on economic growth and job creation and cut down the fiscal deficit, Union Finance Minister Nirmala Sitharaman said on Wednesday, presenting its last full budget in Parliament before the 2024 election.

Here are the charts that show major aspects of Union Budget 2023:

Budget at a glance

The Narendra Modi government focused on a slew of measures that expanded Capital Expenditure spending and tied in various priorities including Green Growth, Youth Power, and Inclusive Development.

Fiscal deficit would be brought down to below 4.5% by 2025-26, Finance Minister Nirmala Sitharaman said. She also said that tax receipts for the next fiscal are budgeted at ₹23.3 lakh crore and States would be allowed 3.5% of GDP as fiscal deficit.

What funds the deficit

The government plans to borrow a record ₹15.4 lakh crore from dated securities in FY24 to meet its expenditure requirement to prop up the economy. This is higher than the total borrowing of ₹14.21 lakh crore for the current financial year ending March 31, 2023.

Rupee come from

Borrowings and other liabilities account for the largest avenue from where the Budget money comes.

Rupee goes to

With 20% of its budget going into interest payments, the State’s share of taxes and duties and the Central sector scheme assume two major areas of spending for the government.

State-wise allocation of central taxes and duties

Here is the state-wise distribution of net proceeds of Union Taxes and Duties for Budget Estimates 2023-24. The distribution was conducted according to the recommendation of the 15th Finance Commission which fixed the share of states at 41% of the net proceeds of sharable Central Taxes and Income Tax.

Transfer to states/UTs

Allocation to Ministries

The Union Budget allocated a massive ₹5.94 lakh crore for the Defence Ministry, a 13% increase year-on-year from last year’s budget estimates.

Outlay for Major Schemes

The Union Budget 2023-24 document listed the new allocations for core welfare schemes that drive socio-economic development.

Finance Minister Nirmala Sitharaman announced a number of measures for the agriculture sector, including an increase in the credit target to ₹20 lakh crore, with focus on animal husbandry, dairy and fisheries.

% change for major schemes

Here’s a roundup of how the budgetary allocations for some of the key schemes have changed. While the MGNREGS budget saw a 32% decrease from the revised estimates of 2022-23, the outlay for PM-Kisan remained the same.

Railway Budget in a Glance

With an outlay of ₹2.40 lakh crore for the financial year 2023-24 compared to ₹1.40 lakh crore in the FY22-23, Finance Minister Nirmala Sitharaman said that the outlay for the railways is nine times the amount provided in 2013-2014.

Cheaper vs Dearer

With an eye on promoting exports, boosting domestic manufacturing and enhancing value addition, Union Budget 2023-24 has proposed number of changes to Customs Duty regime that is likely to make mobile phones and televisions cheaper and certain class of automobiles, including EVs, as well as toys and bicycles dearer.