Employment creation, youth skilling and the middle class were the focus of Finance Minister NIrmala Sitharaman as she presented her seventh consecutive Budget and the first of the third term of the NDA government. Sitharaman said Rs 1.48 lakh crore would be spent on job creation, education and skilling in line with PM Narendra Modi’s Viksit Bharat 2047 Vision.
Sitharaman said the Budget’s nine priorities include productivity, jobs, social justice, urban development, energy security, infrastructure, and reforms.
Earlier in the day, Sitharaman, who is set to make history by presenting her seventh consecutive Budget, posed with a tablet wrapped in a ‘bahi khata’-styled pouch carrying the Budget documents before leaving for Parliament. Morarji Desai had presented six budgets consecutively.
Nirmala Sitharaman announced three new schemes for employment-linked incentives. “I have made a provision for Rs 1.48 lakh crore for education, employment and skilling. The people have given a unique opportunity to our government to take the country on the path of strong development and all round prosperity,” Sitharaman said.
Sitharaman said the allocation for agriculture and allied sectors is Rs 1.52 lakh crore. “New 109 high-yielding and climate resilient varieties of 32 field and horticulture crops will be released for cultivation by farmers. In the next 2 years, 1 crore farmers will be initiated into natural farming,” she further said.
For students, Nirmala Sitharaman announced loans of up to Rs 10 lakh for higher education in domestic institutions and e-vouchers directly to 1 lakh students. “The government will provide e-vouchers directly to 1 lakh students every year with interest subvention of 3 per cent of loan amount,” she said.
The Finance Minister has announced Rs 15,000 crore financial support for Andhra Pradesh. She said the Union government will arrange financial assistance to Bihar through aid from multilateral development agencies.
One month wage would be provided to all persons newly entering the workplace in all formal sectors, the government announced. “Direct Benefit Transfer of one month salary in 3 instalments to first-time employees as registered in the EPFO will be up to Rs 15,000. The eligibility limit will be a salary of Rs 1 lakh per month. The scheme will benefit 210 lakh youth,” Sitharaman said.
The Finance Minister announced that the limit of MUDRA loans will be enhanced to Rs 20 lakh from the current Rs 10 lakh for those who have availed and successfully repaid loans.
Rental housing with dormitory-type accommodation for industrial workers to be facilitated in PPP mode, says Nirmala Sitharaman.
Rs 10 lakh crore has been allocated for urban housing. “Under the PM Awas Yojana-Urban 2.0, the housing needs of 1 crore poor and middle-class families will be addressed with an investment of Rs 10 lakh crores. This will include central assistance of Rs 2.2 lakh crores in the next five years,” she said.
Sitharaman announces ‘Poorvodaya’ scheme for all-round development of the Eastern region of the country, covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh. “On the Amritsar-Kolkata Industrial Corridor, we will support development of an industrial node at Gaya. This corridor will catalyse industrial development of the eastern region,” she said.
Domestic markets are likely to remain under pressure today as investors remain cautiously optimistic, with high expectations for tax relief and potential changes to capital gains taxation. While there is cautious optimism for measures to boost consumption and infrastructure, any disappointment, especially regarding capital gains tax, could lead to a market correction. Going forward, the momentum of the stock market will depend on Nirmala Sitharaman’s budget announcements.