BUDGET SPEECH OF FM-2024

SELECTIVE EXTRACTION-PART:2

EXTRACTED BY: SARASIJ MAJUMDER

CONTINUED AFTER PART-1

Shipping industry: Ownership, leasing and flagging reforms will be implemented.

We will set up a Critical Mineral Mission for domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets.

Our government will launch the auction of the first tranche of offshore blocks for mining, building on the exploration already carried out.

An Integrated Technology Platform will be set up for improving the outcomes under the Insolvency and Bankruptcy Code (IBC) for achieving  consistency, transparency, timely processing and better oversight for all stakeholders.

Voluntary closure of LLPs -- The services of the Centre for Processing Accelerated Corporate Exit (C-PACE) will be extended for voluntary closure of LLPs to reduce the closure time.

National Company Law Tribunals 61. The IBC has resolved more than 1,000 companies, resulting in direct recovery of over ` 3.3 lakh crore to creditors. In addition, 28,000 cases involving over ` 10 lakh crore have been disposed of, even prior to admission.

Steps for reforming and strengthening debt recovery tribunals will be taken. Additional tribunals will be established to speed up recovery.

Urban Development Cities as Growth Hubs : Working with states, our government will facilitate development of ‘Cities as Growth Hubs’. This will be achieved through economic and transit planning, and orderly development of peri-urban areas utilising town planning schemes.

Urban Housing : Under the PM Awas Yojana Urban 2.0, housing needs of 1 crore urban poor and middle-class families will be addressed with an investment of ₹ 10 lakh crore.

In partnership with the State Governments and Multilateral Development Banks we will promote water supply, sewage treatment and solid waste management projects and services for 100 large cities through bankable projects. These projects will also envisage use of treated water for irrigation and filling up of tanks in nearby areas.

Building on the success of PM SVANidhi Scheme in transforming the lives of street vendors, our Government envisions a scheme to support each year, over the next five years, the development of 100 weekly ‘Haats’ or street food hubs in select cities.

Energy Transition 72. In the interim budget, I had announced our strategy to sustain high and more resource-efficient economic growth, along with energy security in terms of availability, accessibility and affordability. We will bring out a policy document on appropriate energy transition pathways that balances the imperatives of employment, growth and environmental sustainability.

In line with the announcement in the interim budget, PM Surya Ghar Muffat Bijli Yojana has been launched to install rooftop solar plants to enable 1 crore households obtain free electricity up to 300 units every month. The scheme has generated remarkable response with more than 1.28 crore registrations and 14 lakh applications, and we will further encourage it.

Research and development of small and modular nuclear reactors . Nuclear energy is expected to form a very significant part of the energy mix for Viksit Bharat. Our government will partner with the private sector for (1) setting up Bharat Small Reactors, (2) research & development of Bharat Small Modular Reactor, and (3) research & development of newer technologies for nuclear energy. The R&D funding announced in the interim budget will be made available for this sector.

The development of indigenous technology for Advanced Ultra Super Critical (AUSC) thermal power plants with much higher efficiency has been completed.

This year, I have provided Rs. 11,11,111 crore for capital expenditure. This would be 3.4 per cent of our GDP.

Phase IV of PMGSY will be launched to provide all-weather connectivity to 25,000 rural habitations which have become eligible in view of their population increase.

Irrigation and Flood Mitigation: BIHAR, and ASSAM suffer from floods originating outside India. HIMACHAL also suffer. We are formulating plan to control this. Uttarakhand too suffered losses due to cloud bursts and massive landslides. We will provide assistance to the state. Recently Sikkim witnessed devastating flash floods and landslides that wreaked havoc across the state. Our Government will provide assistance to the state.

Tourism has always been a part of our civilization. Our efforts in positioning India as a global tourist destination will also create jobs, stimulate investments and unlock economic opportunities for other sectors.

We will operationalize the Anusandhan National Research Fund for basic research and prototype development. Further, we will set up a mechanism for spurring private sector-driven research and innovation at commercial scale with a financing pool of ` 1 lakh crore in line with the announcement in the interim budget. Space Economy 94. With our continued emphasis on expanding the space economy by 5 times in the next 10 years, a venture capital fund of ` 1,000 crore will be set up.

Land-related reforms by state governments : Land-related reforms and actions, both in rural and urban areas, will cover (1) land administration, planning and management, and (2) urban planning, usage and building bylaws. These will be incentivized for completion within the next 3 years through appropriate fiscal support. Rural Land related actions : Rural land related actions will include (1) assignment of Unique Land Parcel Identification Number (ULPIN) or Bhu-Aadhaar for all lands, (2) digitization of cadastral maps, (3) survey of map sub-divisions as per current ownership, (4) establishment of land registry, and (5) linking to the farmers registry. These actions will also facilitate credit flow and other agricultural services. 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 : We will develop a taxonomy for climate finance for enhancing the availability of capital for climate adaptation and mitigation. This will support achievement of the country’s climate commitments and green transition. Variable Capital Company structure : We will seek the required legislative approval for providing an efficient and flexible mode for financing leasing of aircrafts and ships, and pooled funds of private equity through a ‘variable company structure’. Foreign Direct Investment and Overseas Investment : The rules and regulations for Foreign Direct Investment and Overseas Investments will be simplified to (1) facilitate foreign direct investments, (2) nudge prioritization, and (3) promote opportunities for using Indian Rupee as a currency for overseas investments.

 NPS Vatsalya : NPS-Vatsalya, a plan for contribution by parents and guardians for minors will be started. On attaining the age of majority, the plan can be converted seamlessly into a normal NPS account.

We will step up adoption of technology towards digitalization of the economy.

Budget Estimates 2024-25 112.

For the year 2024-25, the total receipts other than borrowings and the total expenditure are estimated at Rs. 32.07 lakh crore and Rs. 48.21 lakh crore respectively. The net tax receipts are estimated at Rs. 25.83 lakh crore. The fiscal deficit is estimated at 4.9 per cent of GDP. The gross and net market borrowings through dated securities during 2024-25 are estimated at Rs. 14.01 lakh crore and Rs. 11.63 lakh crore respectively. Both will be less than that in 2023-24.  The fiscal consolidation path announced by me in 2021 has served our economy very well, and we aim to reach a deficit below 4.5 per cent next year. The Government is committed to staying the course. From 2026-27 onwards, our endeavour will be to keep the fiscal deficit each year such that the Central Government debt will be on a declining path as percentage of GDP.

MY OBSERVATION:-- WITH THIS, WHAT IS LEFT IS TAX PART. THAT I WILL COVER ON 25.07.24

TO BE CONTINUED: LAST PART WILL BE ON TAX.

Source:- Lecture on BUDGET BY FM.

URL of Part-1: https://sarasij1majumder.blogspot.com/2024/07/budget-speech-2024-fm-selected-extracts.html

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