Union Budget 2024 current affairs (Important for all competitive exams)

Stay updated with the latest Union Budget 2024-25 highlights and find answers to important budget-related questions- Informative and comprehensive analysis on Minikosh.

What is Budget?

A budget is an annual financial statement for a fixed period, usually a year, that outlines estimated income and expenditure. It is used as a tool for managing financial resources and achieving specific goals such as mobilization of resources, fiscal consolidation, etc.
A budget is a blueprint for the government’s ‘expenditure’, plans to impose taxes and other transactions that affect the economy and the lives of citizens.
According to Article 112 of the Indian Constitution, the Union Budget for a specific financial year is called the Annual Financial Statement (AFC).
The National Budget is prepared by the Budget Division under the Department of Economic Affairs (DFA) of the Ministry of Finance and presented to the Parliament for discussion and approval.
The budget is used as a tool to manage the financial resources of the country and to achieve the economic and social policies of the government.

What is Interim Budget?

Interim Budget is presented by the Government of India before the general elections.
Interim budgets usually focus on outlining the government’s proposed expenditure plans for the next few months rather than the entire financial year.
It is a statement of government’s financial position and includes estimates of revenue and expenditure for the next financial year, but does not include any new policy announcements or proposed tax changes.

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Finance minister who presented the budget the most times in India was Morarji Desai, who presented the budget 10 times, twice in 1964 and 1968 on the occasion of his birthday on February 29.
The budget of 1973-74 is called the “Black Budget” of India, because the budget deficit during 1973-74 was Rs. 550 crore.
R Venkataraman and Pranab Mukherjee have been the two Finance Ministers of India who later served as the President of India.
For the first time in India, corporate tax was introduced by Rajiv Gandhi in the budget of 1987.
The term “Interim Budget” was first used by R. Shanmukham Chetty in his budget speech of 1948-49.
The first budget under the British Crown was presented by the East India Company in India on April 7, 1860.
The first Finance Minister to present the budget in India was “James Wilson“.
Till 2000, the budget was presented at 5 pm, but Finance Minister Yashwant Sinha changed the time of presenting the budget in 2001 to 11 am.
Since 2001, the budget is presented every time at 11 am, the tradition of presenting the budget at 5 pm was started by “Sir Basil Blackett” in the year 1924.

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First budget of Modi Government 3.0

The first budget of the Modi 3.0 government led by Prime Minister Narendra Modi is presented on 23 July 2024.
Finance Minister Nirmala Sitharaman has presented the Union Budget 2024-25.
The Parliament session of the 18^th Lok Sabha began on Monday, July 22, 2024, after the Economic Survey presented on the first day, on July 23, 2024, Finance Minister Nirmala Sitharaman presented the annual financial budget for 2024-2025. This was 11^th full-time budget of the Modi government, while it is the first budget of the third term.
Nirmala Sitharaman has become the first Finance Minister to present the budget seven times in a row. In this matter, she has left behind the Morarji Desai who had presented the budget six times in a row.

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Why is the budget being presented in July?

The Finance Minister usually presents the Union Budget annually.
However, due to the Lok Sabha elections, the budget is being presented twice this year. An interim budget was presented on February 1, 2024 and a full Union Budget is presented after the formation of the government.

Priorities of Modi 3.0 budget

Productivity and resilience in agriculture
Employment and skilling
Inclusive human development and social justice
Manufacturing and Services
Urban Development
Infrastructure
Energy Independence
Innovation, research and development
Next generation Reforms

Revised tax rate

0-3 Lakh-0
3-7 Lakh-5%
7-10 Lakh-10%
10-12 Lakh- 15%
12-15 Lakh- 20%
15 Lakh and above- 30%

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Expenditure of Major Sector

Defence- 4,54,773 (Rs. Crore)
Rural Development- 265,808
Agriculture and allied activities- 151,851
Home Affairs-150,983
Education-125,638

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Key facts of Budget 2024-25

Finance Minister Nirmala Sitharaman kept FY 25 capex outlay unchanged at ₹11.11 lakh crore, maintaining a 16.9% increase from last year’s revised estimate of ₹9.5 lakh crore.
Short term capital gain tax on certain financial assets revised to 20%.
Long term capital gain tax revised to 12.5% on Financial assets.
Customs duties on gold, silver cut to 6%, platinum to 6.4%, Lithium, Copper, Cobalt exempted from Custom Duty.
Expenditure for FY25 seen at 48.21 lakh crore
Receipts for FY25 seen at 32.07 lakh crore.
FY25 Fiscal Deficit projected at 4.9% of GDP versus 5.1% in Interim Budget.
Aim is to reach a fiscal deficit of below 4.5% next year.
Investment-ready “plug and play” industrial parks tobe developed in or near 100 cities
1000 ITIs to be upgraded in hub & spoke arrangements in 5 years.
1 crore youth to be skilled by India’s top companies in five years.
12-month Prime Minister’s Internship with monthly allowance of ₹5,000 will be given.
Provision of ₹1.52 lakh crore for the agriculture and allied sectors is made.
10,000 bio research centres will be established.
Budget 2024 focuses on four castes- poor, women, youth and food providers.
Union Finance Minister Nirmala Sitharaman in her budget speech has proposed to generate employment for about 4.1 crore youth in the next five year, For this, the Finance Minister has allocated ₹2 Lakh crore.
The Finance Minister announced that Phase 4 of the Pradhan Mantri Gram Sadak Yojana will be launched to provide all- weather roads to 25,000 rural habitations.
The Finance Minister announced that a plan will be made to promote 100 weekly haats in selected cities in the next five years based on the PM Svanidhi Scheme for street vendors.
The private sector will be given help in every area through government schemes. ₹3.3 lakh crore was given to the companies through the National Company Law Tribunal.
To increase the reach of SIDBI, new branches will be opened in the next 3 years. Out of these, 24 branches will be opened this year.
The government will make provision for providing internships to 5 crore youth in 500 top companies.
Under the Pradhan Mantri Awas Yojana- Urban, the housing needs of one crore poor and middle class families will be met with an investment of ₹10 lakh crore. This includes an investment of ₹2.2 lakh crore in the next five years.
Finance Minister Nirmala Sitharaman announced that credit support for MSMEs, Mudra loan limit will be increased from ₹10 lakh to ₹20 lakh for those who have previously taken loan under Tarun category and success.
To achieve self-sufficiency in pulses and oilseeds, the government will strengthen their production, storage and marketing. Presenting the Union Budget 2024-2025 in the Lok Sabha, the Finance Minister said that a strategy is being formulated to achieve self-sufficiency for oilseeds such as mustard, groundnut, sesame, soybean and sunflower.
The government has said that it will start three employment-related schemes. Presenting the Union Budget for 2024-25, Finance Minister Nirmala Sitharaman said that the government will incentivize 30 lakh youth entering the job market by contributing one month’s PF (Provident Fund).
Allocation of more than 3 lakh crore rupees for schemes benefitting Women and girls.
More than 100 branches of India post payment bank will be setup in north east region.
A package of 26 thousand crores has been announced for road projects in Bihar. A power plant worth ₹21,000 crore has also been announced in Bihar. Apart from this, Bihar will get financial assistance. Andhra Pradesh will get a package of about 15 thousand crores.
The government will provide financial assistance for loans up to Rs. 10 lakh for higher education in education in domestic institutions.
The finance minister announced that for the space economy, which the government is pushing to increase by 5 times in the next ten years, a venture capital fund of Rs 1,000 crore will be set up.
Projects for water supply, sewage treatment to be started for 100 big cities
Development plans will be launched for connectivity in14 big cities with a population of more than 30 lakh.
Under PM Awas Yojana 2.0, 1 crore urban and middle class families will get benefit, 100 weekly haats and street food hubs will be set up in selected cities.
Tourism in Bihar has been emphasized in the budget. Tourism will be developed in Nalanda.
Rajgir Tourist Center will be constructed in Bihar. A provision of Rs 11,000 crore has been made for Bihar on flood disaster.

Some Important questions on Budget

When was the first budget presented in India?

Ans: February 18, 1860

Who presented the first budget in India on February 18, 1860?

Ans: James Wilson of the East India Company

Corporate tax in India was first introduced by whom in the budget of 1987?

Ans: Rajiv Gandhi

Budget system in India was introduced during the tenure of which Viceroy?

Ans: Lord Canning

What is the word used for Budget in the Constitution?

Ans: Annual financial statement

Which year budget is called Black budget in India?

Ans: 1973-74

The term Interim Budget was first used by R Shanmukham Chetty in his speech in which year?

Ans:1948-49

Who defined Budget as “A statement of the estimated receipts and expenses during a fixed period”?

Ans: Leroy Belieu

Which of the following is responsible for the preparation and presentation of the Union Budget in Parliament?

Ans: Department of Economic affairs

A budget document, which deals with the revenue receipts and revenue expenditure of the government for a particular financial year, is called?

Ans: Revenue Budget

The provision of annual financial statement is there in which article of the Indian Constitution ?

Ans: Article 112

In which year on the recommendations of the East India Railway Committee headed by Sir William Acworth, railway finance was separated from general government finance?

Ans: 1924

In which year were the Union Budget and Railway Budget of India merged?

Ans: 2016

Till which year the budget was presented only at 5 pm?

Ans: 2000

The tradition of presenting the budget at 5 pm was started by “Sir Basil Blackett ” in which year?

Ans:1924

Which ministry prepares the budget?

Ans: Finance ministry

Who presented the first budget of independent India?

Ans: R. K. Shanmukham Chetty (26 Nov. 1947)

How many times has paperless budget been presented in the Parliament?

Ans:4

Which budget is India’s first paperless budget presentation?

Ans: Budget 2021-22

Who is the first full-time woman finance minister of India?

Ans: Nirmala Sitharaman

Who is the first woman finance minister of India?

Ans: Indira Gandhi

Who has become the first finance minister to present the budget for seven consecutive terms?

Ans: Nirmala Sitharaman

In which year was the Zero Base Budget first used in India?

Ans: Nirmala Sitharaman

How many Prime Ministers of India have presented the budget while being the Prime Minister?

Ans: 3 (Jawaharlal Nehru, Indira Gandhi and Rajiv Gandhi)

Who presented the first budget of the Republic of India?

Ans: John Mathai

When was the first budget of the Republic of India presented?

Ans: February 28, 1950

On which date was the budget presented before 2017?

Ans: At the end of February

On which date din the budget start being presented after 2017?

Ans: 1 February

What is the interim budget called?

Ans: Mini Budget or Vote On Account

What is type of Budget?

Ans: Deficit Budget: If the estimated government expenditure is more than the expected government revenue in a particular financial year.

Balanced Budget: A budget is called a balanced budget if the estimated governemnt expenditure is equal to the expected government receipts in a particular financial year.

Surplus Budget: If the expected government revenue is more than the estimated government expenditure in a particular financial year.

Who is known as the father of Indian budget system?

Ans: James Wilson