FM vows more projects and funds to cut poverty and create jobs

THIRUVANANTHAPURAM: The first Budget of the third Modi Government, presented by Finance Minister Nirmala Sitharaman in Parliament on Tuesday, is pro-rural.

It includes expressions of gratitude to Bihar Chief Minister Nitheesh Kumar and Andhra Pradesh Chief Minister Chandrababu Naidu, whose support enabled Modi’s third consecutive term—a milestone equivalent to that of Jawaharlal Nehru, the country’s first premier.

The budget’s primary focus is on increased spending for women, youth, and farmers, aiming to reduce poverty.

Finance Minister Nirmala Sitharaman announced new schemes and allocated additional funds for skill development among job-seeking youths, as well as initiatives to create more jobs in informal sectors.

Sirtharaman has announced an allocation of Rs2 lakh crore for job creation over five years. New employment skilling scheme to provide skills to 20 lakh youth in five years.

Internship allowance

She also said one-month wage to all new employees to be provided as a direct benefit transfer in three installments up to Rs15,000. The eligibility salary limit will be Rs1 lakh per month. The scheme will benefit 2.1 lakh youth.

Internship scheme for one crore youth in 500 top companies with Rs5,000 per month as internship allowance and one-time assistance of Rs6,000 to be provided.

Aiming to generate more jobs in the unorganised sector, the limit of Mudra loans has been raised to Rs20 lakh from Rs10 lakh for those who have availed and successfully repaid under the TARUN category.

She also announced that the Government will introduce a credit guarantee scheme for MSMEs and announced Rs1.52 lakh crore allocated for agriculture and allied sectors.

Large-scale clusters for vegetable production will be developed near major consumption centres. Farmer-producer organisations, cooperatives and start-ups will be promoted for vegetable supply chains including collection, storage and marketing.

The minister announced a Rs3 lakh crore allocation for women-centric schemes.

Bihar, Andhra Pradesh in limelight

Nirmala Sitharaman has generously allocated funds and projects to Andhra Pradesh and Bihar.

As initial assistance, Sitharaman has allocated Rs15,000 crore to Andhra Pradesh for developing Amaravati as its capital. She has also pledged future funding for the project.

The Centre will provide funds for the early completion of the Polavaram Irrigation Project, which is considered a lifeline for Andhra Pradesh and its farmers.

Funds will be provided for essential infrastructure such as water, power, railways, and roads, and also grants for backward regions of Rayalaseema, Prakasam North coastal Andhra Pradesh.

The Sitharaman announced the Bihar city of Gaya on the Amritsar-Kolkota industrial corridor will be developed as an industrial hub.

She said that 2,400MW power projects are to be set up at Pirpainti with an investment of Rs21,400 crore. New airports, medical colleges, and sports infrastructure in Bihar will be constructed.

The minister promised an additional allocation to support capital investments that will be provided through external assistance from multilateral development banks.

The Centre would construct the Patna-Purnia Expressway. Buxar-Bhagalpur Expressway, Bodhgaya, Rajgir, Vaishali, and Darbhanga Spur and an additional 2-lane bridge over river Ganga at Buzar.

The minister announced that Vishnupad Temple in Gaya and Mahabodhi Temple in Bodh Gaya, Bihar, are to be transformed into world-class tourist destinations along the lines of the Kashi Vishwanath Temple Corridor.

Nalanda will be developed as a tourist centre, in addition to reviving Nalanda University to its former glory, she said.

On the other hand, she has retained capital expenditure to Rs11 lakh core announced in the interim budget against Rs15 lakh crore in last year’s budget.

Corporate tax for foreign firms has been slashed to 35 per cent from 40 per cent.

Bringing cheers to stock investors, she has reduced the tax on short-term capital gains to 20 per cent. Unlisted bonds and debentures will also attract capital gains tax.

The Finance Minister also announced major changes to the Income Tax Act of 1961, bringing significant relief to the middle class and raising the standard deduction in the income tax regime from Rs30,000 to Rs75,000. The deduction on family pension has been increased from Rs15,000 to Rs30,000.”

The fiscal deficit is estimated at 4.9 per cent of GDP for the current fiscal and aims to reach 4.5 per cent by the end of next year.  

She said that the government has lowered planned gross market borrowing by Rs12,000 crore for FY 2025. The government aims to borrow a gross of Rs14.01 lakh crore, down from Rs14.13 lakh rupees announced in the interim budget.

She did not disclose the funds allotted to Defence, Health, Education, and other crucial ministries. Perhaps she prefers not to make changes to the allocations set in the interim budget presented near the end of the second Modi government.