The Union Budget 2025 has been presented with some key announcements, including an increase in the Kisan Credit Card loan limit from Rs 3 lakh to Rs 5 lakh, benefiting 7.7 crore farmers. Additionally, the Finance Minister introduced the Pradhan Mantri Dhan Dhanya Yojana, which aims to integrate 1.7 crore farmers with skills and technology. The first phase of this scheme will be launched in 100 districts across the country. However, apart from these, no major schemes were announced in the budget.
Tax relief for senior citizens: The tax exemption limit for senior citizens has been increased from Rs 50,000 to Rs 1 lakh.
Tax exemption on rent: The annual tax exemption limit on rental income will be increased from Rs 2.40 lakh to Rs 6 lakh.
Tax exemption on medicines: 36 life-saving medicines will now be tax-free.
Loan facilities for dairy and fisheries: Loans up to Rs 5 lakh will be provided.
Fellowships in IITs and IISc: 10,000 fellowships will be offered.
In the previous budget, the government had announced major schemes like the PM Suryaghar Free Electricity Scheme, NPS Vatsalya Scheme, and the Pradhan Mantri Mudra Loan Yojana. However, these schemes have yet to meet their targets.
Objective: Allows parents to invest in a pension fund for children under 18.
Benefits: Converts to a regular NPS account when the child becomes an adult.
Minimum Deposit: Rs 1,000 per year.
Announcement Date: July 23, 2024
Launch Date: September 18, 2024
Status: As per UNICEF, India has 43 crore children under 18. By December 2024, only 75,000 applications were received, accounting for just 0.17% of the target population.
Objective: Install rooftop solar systems in 1 crore homes under the PM Suryaghar Free Electricity Scheme.
Subsidies: Up to Rs 78,000 per household.
Announcement Date: February 1, 2024
Launch Date: February 15, 2024
Target: Install solar panels in 1 crore homes by March 2027.
Status: By December 2024, only 4.1% of the target was achieved, with just 1 lakh applications accepted out of the required 24 lakh installations.
Objective: Increase Mudra loan limit from Rs 10 lakh to Rs 20 lakh for MSMEs.
Repayment Period: 5 years.
Announcement Date: July 2024
Launch Date: October 2024
Target: Rs 2.3 lakh crore in loans.
Status: Though Rs 3.6 lakh crore in loans were disbursed (156% of target), 32% of borrowers have defaulted, raising concerns about non-performing assets (NPAs).
Objective: Provide internships in India’s top 500 companies.
Stipend: Rs 5,000 per month.
Target: 1 crore internships in 5 years.
Status: The scheme was set to launch on December 2, 2024, but has been put on hold with no new launch date announced.
Objective: Provide an incentive equal to the first salary for new employees registering with EPFO.
Benefit: Rs 15,000 bonus in three installments.
Target: Support 2.1 crore youth.
Status: The first installment has yet to be credited to bank accounts.
Objective: Reimbursement of EPF contributions for companies hiring new employees.
Benefit: Rs 3,000 per month reimbursement for two years.
Status: Employer reimbursements are yet to begin, despite the registration deadline being January 15, 2025.
Objective: Provide incentives to first-time employees and employers in the manufacturing sector.
Target: Benefit 30 lakh youth.
Status: Registration deadline was January 15, 2025, but rules for determining incentive amounts remain unclear.
In conclusion, while Budget 2025 has introduced tax relief and credit expansions, it lacks major new schemes. Furthermore, several previously announced schemes have not met their targets, raising concerns about implementation. With ongoing economic challenges, the success of these initiatives remains uncertain, and their real impact on employment and development will depend on execution in the coming years.
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