Nirmala Sitharaman, Minister of Finance, recently presented the Union Budget 2024-25 in the Lok Sabha on July 23, 2024. For the seventh consecutive budget, Sitharaman stated that India’s inflation remains low, stable, and moving towards the 4 percent target. Core inflation (non-food, non-fuel) is currently at 3.1 percent.
Sitharaman highlighted the budget’s sustained efforts across nine priorities to generate ample opportunities: productivity and resilience in agriculture, employment and skilling, inclusive human resource development and social justice, manufacturing and services, urban development, energy security, infrastructure, innovation, research & development, and next-generation reforms.
Pradhan Mantri Awas Yojana (PMAY)
The announcement of an additional three crore houses under the Pradhan Mantri Awas Yojana in rural and urban areas has been made, with the necessary allocation completed. This scheme aims to address the housing needs of one crore urban poor and middle-class families with an investment of ₹10 lakh crore, including central assistance of ₹2.2 lakh crore over the next five years. The provision of interest subsidies to facilitate loans at affordable rates is also included.
Transit-Oriented Development
Transit-oriented development plans for 14 large cities with populations above 30 lakhs will be formulated, including implementation and financing strategies.
Rental Housing
Taxation policies and regulations for efficient and transparent rental housing markets will be established. Rental housing with dormitory-type accommodations for industrial workers will be facilitated in PPP mode with VGF support and commitments from anchor industries.
Stamp Duty
The Finance Minister also announced that the center will encourage states that continue to charge high stamp duty to moderate the rates for all and consider further lowering duties for properties purchased by women. This reform is an essential component of urban development schemes.
Land-Related Reforms by State Governments
State governments will undertake land-related reforms and actions in both rural and urban areas, covering:
Land administration, planning, and management
Urban planning, usage, and building bylaws
These will be incentivized for completion within the next three years through appropriate fiscal support.
Rural Land-Related Actions
Rural actions will include:
Assignment of unique land parcel identification number (ULPIN) or Bhu-Aadhaar for all lands
- Digitization of cadastral maps
- Survey and subdivision as per current ownerships
- Establishment of a land registry
- Linking to farmers’ registry
- Urban-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 to improve the financial position of urban local bodies.
Cities as Growth Hubs
In collaboration with states, the government will facilitate the development of “Cities as Growth Hubs” through economic and transit planning and orderly development of peri-urban areas utilizing town planning schemes.
Creative Redevelopment of Cities
For creative brownfield redevelopment of existing cities with transformative impacts, the government will formulate a framework for enabling policies, market-based mechanisms, and regulations.
Long-Term Capital Gains
Long-term gains on all financial and non-financial assets will attract a tax rate of 12.5 percent. To benefit the middle class, the Finance Minister proposed increasing the exemption limit for capital gains on certain financial assets to ₹1.25 lakh per year.
Andhra Pradesh Capital
The central government has made concerted efforts to fulfill the commitments in the Andhra Pradesh Reorganization Act. Recognizing the state’s need for a capital, the government 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.
National Company Law Tribunals
The IBC has resolved more than 1,000 companies, resulting in a direct recovery of over ₹3.3 lakh crore for creditors. Additionally, 28,000 cases involving over ₹10 lakh crore have been disposed of prior to admission. Additional tribunals will be established, with some dedicated to deciding cases exclusively under the Companies Act.
PM Surya Ghar Muft Bijli Yojana
In line with the interim budget announcement, PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar plants, enabling one crore households to receive free electricity for up to 300 units per month. This scheme has generated a remarkable response with more than 1.38 crore registrations and 14 lakh applications, and the government will continue to encourage it.
Industrial Parks
The government will facilitate the development of investment-ready “plug and play” industrial parks with complete infrastructure in or near 100 cities, in partnership with states and the private sector. Twelve industrial parks under the National Industrial Corridor Development Programme will also be sanctioned.
