A Comparative Study of Union Budgets:

2023-24 & 2024-25

PREPARED BY-
Mayank Agrawal
State Finances & Coordination Vertical Intern
NITI Aayog
ACKNOWLEDGEMENT
The internship experience I had with NITI Aayog was truly invaluable, providing me with a remarkable
opportunity for learning and professional growth. I consider myself incredibly fortunate to have been a part
of this enriching experience and to have had the chance to meet and collaborate with exceptional individuals
who supported and guided me throughout this journey.
I extend my deepest gratitude and heartfelt appreciation to Mr. Kanishk Jain, Mrs. Himani Sachdeva and
Dr Shelly Dahiya, State Finance and Coordination Vertical who despite their demanding responsibilities,
generously devoted time to listen, advise, and assist me whenever I faced challenges. This project has been
made under their guidance.
I must also express my utmost appreciation to all other staff members for their meticulous and invaluable
mentorship, which significantly contributed to both the theoretical and practical aspects of my study. This
internship marks a significant milestone in my career development, and I am committed to applying the
skills and knowledge I gained in the most effective manner, continuously striving to enhance and refine
them. Looking forward, I sincerely hope for the opportunity to maintain fruitful cooperation with all of you
in the times ahead.

ABSTRACT
The goal of this project is to examine and contrast the Indian government's Union Budgets for the 2023–
2024 and 2024–2025 fiscal years. The study's main objective is to assess the government's budgetary
policies throughout these times and how they affected important economic sectors and indicators.

Using a thorough analytical approach, the research looks at a number of aspects related to the Union
Budgets, such as trends in revenue and expenditure, tax policies, allocations for infrastructure development,
spending in the social sector, defence and security, agriculture and rural development initiatives, strategies
for foreign direct investment (FDI), management of the fiscal deficit, environmental initiatives, and
measures to promote the digital economy.
This research attempts to give insights into the government's economic goals, policy moves, and the general
trajectory of the Indian economy throughout these years by undertaking a thorough comparative analysis
of the Union Budgets for 2023–24 and 2024–25. Policymakers, economists, and other stakeholders can
benefit greatly from the research's conclusions and suggestions when evaluating the efficacy of fiscal
policies and developing future economic plans.

INTRODUCTION
The fiscal policies of a country have a significant impact on several areas of its economy, including
employment, growth, public welfare, and financial stability. One of the main tools used to develop and
carry out fiscal policy is the Union Budgets that the Indian government presents. These budgets show the
government's goals, plans, and reactions to changing economic difficulties in addition to allocating funds.

This study assignment explores the thorough examination and contrast of the Indian Union Government's
Union Budgets for the fiscal years 2023–24 and 2024–25. The objective of the research is to assess the
efficiency and influence of fiscal policies in these time periods, taking into account different economic
metrics, policy directives, and sectoral distributions.

In addition to providing insight into the financial tactics used by the Indian government, the research will
further the conversation on the efficacy of fiscal policy, governance, and economic
KEY FEATURES OF BUDGET 2022-23
1. PM GatiShakti
• Development of a National Master Plan focusing on modern infrastructure and logistics synergy,
including expressways and completion of 25,000 km of national highways in 2022-23.
• Implementation of a Unified Logistics Interface Platform for data exchange among all mode
operators and an Open Source Mobility Stack for seamless passenger travel.
• Awarding 4 Multimodal Logistics parks through Public-Private Partnership (PPP) in 2022-23 and
enhancing multimodal connectivity between urban transport and railway stations.
• Introduction of a National Ropeways Development Plan as a sustainable alternative to traditional
roads and capacity building for infrastructure projects.

2. Agriculture and food processing

• Promoting chemical-free natural farming: Encouraging farmers near the Ganga River to adopt
natural farming practices, reducing chemical inputs for sustainable agriculture.
• Promoting millet products: Enhancing post-harvest value addition, consumption, and branding of
millet products to increase their market visibility and consumption.
• Delivery of Digital and Hi-Tech services: Providing farmers with digital and high-tech services
in a Public-Private Partnership (PPP) model to improve agricultural practices and efficiency.
• Use of Kisan Drones: Introducing Kisan Drones to assist farmers in monitoring crops, optimizing
resource management, and enhancing agricultural productivity.
• Launching blended capital fund: Establishing a fund with blended capital to support agriculture
startups, fostering innovation and entrepreneurship in the agricultural

3. Education
• Universalisation of Quality Education:
▪ One class One TV channel programme to be expanded to 200 TV channels
▪ A Digital University will be established with world class quality universal education
▪ Virtual labs and skilling e-labs to promote critical thinking skills and stimulated learning
environment
• Skill Development:
▪ Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to
promote online training
▪ Startups will be promoted to facilitate Drone Shakti for Drone-As-A-Service

4. Health
• National Digital Health Ecosystem will be rolled out
• National Tele Mental Health Programme will be launched for quality counselling
• Integrated architecture: Mission Shakti, Mission Vatsalya, Saksham Anganwadi, and Poshan 2.0
to be launched
• Two lakh Anganwadis to be upgraded to Saksham Anganwadis

5. All inclusive welfare focus

• Har Ghar, Nal Se Jal: 3.8 crore households to be covered in 2022-23
• PM Awas Yojana: 80 lakh houses to be completed in 2022-23
• PM-DevINE: To fund infrastructure and social development based on felt needs of the North East
• Aspirational Blocks Programme: For development of lagging blocks of aspirational districts
• Vibrant Villages Programme: Targeting development of villages on the Northern Border left out
from the development gains
• Digital Banking by Post Offices: 100% of post offices to come on the core banking system
• Digital Payments: Scheduled Commercial Banks to set up 75
• Digital Banking Units in 75 district
 6. Productivity enhancement and investment
• Ease of Doing Business 2.0: Trust based governance; Integration of central and state level systems
through IT; Identification Number for ITbased management of landrecords; Establishing C-PACE
facilitate voluntary winding upof companies; End to end online e-Bill Systemand utilising surety
bonds in government procurement; AVCG promotion task force; Support to 5G under PLI
scheme; Opening up defence R&D for industry, startups and academia
• Ease of Living: Issuance of chip embedded e-Passports; Modernisation of building byelaws,
implementing Town Planning Schemes and Transit Oriented Development; Establishing Centres
of Excellence in urban planning; Providing a battery swapping policy as an alternative to setting
up charging stations in urban areas

KEY FEATURES OF BUDGET 2023-24

Saptarishi-7 priorities
1. Sabka Saath Sabka Vikas – Inclusive Development
• Agriculture and Cooperatives: Building Digital Public Infrastructure; Setting up Agriculture
Fund; ANB Horticulture Clean Plan Program to be launched; Making India global hum for
millets; Setting-up of widely available storage capacity
• Health: 157 new nursing colleges; Sickle Anaemia elimination mission to be launched; New
Programme to promote research in Pharmaceuticals to be launched; Joint Public and Private
Medical Research to be encouraged via select ICMR labs
• Education and Skilling: Revamped Teachers’ training via District Institute of Education and
Training; National Digital Library to be set up for children and adolescents; States will be
encouraged to set up physical libraries at Panchayat and ward levels

2. Reaching the last mile

• Pradhan Mantri PVTG Development Mission to be launched
• Financial assistance to be given for sor sustainable micro irrigation in drought prne regions of
Karnatka
• More teachers to be recruited for 740 Eklavya Model Residential Schools
• Bharat Shri to be set up for digitalization of ancient inscription

3. Infrastructure
• Increased capital investment outlay by 33.4%
• Continuation of 50 year interest free loan to State Governments to incentivicize infrastructure
investment
• Highest ever Capital Outlay of Rs 2.4 lakh crore for Railways
• 100 transport infrastructure projects identified for end-to-end connectivity
• Creating Urban Infrastructure via establishment of UIDF

4. Unleashing The Potential – Trust based governance

• Make Al in India: Three specialized Al centres to be set up in educational Institutes
• National Data Governance to be introduced
• Vivad se Vishwas I: Less stringent contract execution for MSMEs
• Vivad se Vishwas Il: Easier and standardized settlement scheme
• Phase 3 of E-Courts to be launched
• Entity Digi Locker to be setup for use by business enterprises and charitable trusts
• Setting up of 100 labs for 5G services based application development
• R&D grant for Lab Grown Diamonds (LGD) sector
 5. Green Growth
• PM-PRANAM* to be launched Will States/UTs promote usage of alternative fertilizers
• 500w "Waste to Wealth" plants to be established under GOBARdhan scheme for promoting
circular economy
• Sustainable Ecosystem development MISHTI to be taken up for Mangrove plantation along the
coastline; Amrit Dharohar to be implemented for optimal usage of wetlands
• Other Initiatives Setting up 10,000 bio-inputs resource centres-to facilitate farmers to adopt
natural farming; Promotion of Battery energy storage systems Promotion of coastal shipping for
energy efficient transportation; Funds to be allocated for replacing old polluting vehicles

6. Amrit Peedhi – Youth Power

• PMKVY 4.0 will be launched covering topics like coding, AI, Robotics, 3D Printing, etc.
• Measures to boost tourism sector: Atleast 50 destinations will be chosen, to be developed as a
complete package for domestic and foreign tourists
• States will be encouraged to set up Unity Malls

7. Financial Sector
• Setting up of National Financial Information registry to enable efficient lending and promote
financial inclusion
• Setting up of Central Data processing Centre for faster handling of administrative work under
Companies Act
• Credit Gurantee scheme for MSMEs: Expanded corpus under a revamped scheme to enable
additional collateral free guaranteed credit of RS 2 lakh crore
• Mahila Samman Bachat Patra: One time new small savings scheme for a 2-year period with a
deposit facility of up to Rs 3 lakh for women
• Benefits for Senior Citizens: enhanced maximum deposit limit for senior citizens savings scheme
from Rs 15 lakhs to Rs 30 lakhs
• Other Initiatives: Initiatives to promote business activities on GIFT IFSC; Create more trained
professionls in Securities Markets via award of educational certificates

KEY FEATURES OF BUDGET 2024-25

Budget Highlight: Viksit Bharat by 2047 (Vision: Prosperous Bharat in harmony with nature, modern
infrastructure and opportunities for all)
People-Centric Inclusive Development
• Substantive development of all forms of infrastructure-Physical, Digital and Social
• Digital Public Infrastructure (DPI)-Promoted formalisation and financial inclusion
• Deepening and widening of tax base via GST
• Strengthened financial sector brought savings, credit and Investment back on track
• GIFT IFSC- A robust gateway for global capital and financial services for the economy
• Proactive Inflation management
• All parts of country becoming active participants in economic growth

Focus Areas

• Garib Kalyan, Desh ka Kalyan

• Empowering the Youth
• Welfare of Farmers-Annadata
 • Nari Shakti

Strategy for Amrit Kaal

1. Sustainable Development

• Commitment to meet ‘Net Zero’ by 2070: Viability gap funding for wind energy; Setting up of
coal gasification and liquefaction capacity; Phased mandatory blending of CNG, PNG and
compressed biogas
• Rooftop solarization-1 crore households will be enabled to obtain up to 300 units of free electricity
per month
• Adoption of e-buses for public transport network
• Strengthening e-vehicle ecosystem by supporting manufacturing and charging
• New scheme of biomanufacturing and bio-foundry to be launched to support environment friendly
alternatives

2. Infrastructure and Investment

• Implementation of 3 major railway corridor programmes under PM Gati Shakti-to improve

logistics efficiency and reduce cost
• Promotion of foreign investment via bilateral investment treaties to be negotiated
• Expansion of existing airports and comprehensive development of new airports under UDAN
scheme
• Promotion of urban transformation via Metro rail and NaMo Bharat

3. Health

• Encourage Cervical Cancer Vaccination for girls (9-14 years)

• Saksham Anganwadi and Poshan 2.0 to be expedited for improved nutrition delivery, early
childhood care and development
• U-WIN platform for immunisation efforts of Mission Indradhanush to be rolled out
• Health cover under Ayushman Bharat scheme to be extended to all ASHA, Angawadi workers
and helpers

4. Housing

• Pradhan Mantri Awas Yojana (Grameen) close to achieving target of 3 crore houses, additional 2
crore targeted for next 5 years
• Housing for Middle Class scheme to be launched to promote middle class to buy/built their own
houses

5. Tourism

• States will be encouraged to undertake development of iconic tourist centres to attract business
and promote opportunities for local entrepreneurship
• Long-term interest free loans to be provided to States to encourage development
• G20 meetings in 60 places presented diversity of India to global audience
• Projects for port connectivity, tourism infrastructure, and amenities will be taken up in islands,
including Lakshadweep

6. Agriculture and Food Processing

• Government will promote private and public investment in post-harvest activities

 • Application of Nano-DAP to be expanded in all agro-climatic zones
• Atmanirbhar Oilseeds Abhiyaan-Strategy to be formulated to achieve atmanirbharta for oilseeds
• Comprehensive programme for dairy development to be formulated
• Implementation of Pradhan Mantri Matsaya Sampada Yojana to be stepped up to enhance
aquaculture productivity, double exports and generate more employment opportunities

KEY DIFFERENCES BETWEEN THE BUDGETS

TaxRegime

FM Sitharaman announced updated tax rates in the Union Budget of 2023. According to the statement,
under the new tax regime, a person would not be required to pay any tax on income up to ₹7 lakh, or
about $8,000, annually. The finance minister did, however, state at this year's presentation that "I do not
propose any changes in tax rates in direct and indirect taxes including import duties."

In addition, Sitharaman declared that during the previous 10 years, tax receipts had more than quadrupled
and that in 2024, the average time it took to submit a tax return was less than ten days.

Infrastructure
For the construction of infrastructure, the government set aside ₹1.10 lakh crore, or more than $1 trillion.
The government has allocated 11.11 percent more for infrastructure construction this year than it did in
2023.

Rural Economy & Agriculture

To enhance farmers' livelihoods, the government planned to establish a new agency in 2023 to offer
finance and other support services, such as a new insurance programme. FM Sitharaman stated that in
order to assure development, the government would encourage both public and private investment in
post-harvest operations this year. These activities include aggregation, cutting-edge storage, effective
supply chains, primary and secondary processing, marketing, and branding.

Empowerment of Women
Finance Minister Nirmala Sitharaman emphasised the Beti Bachao Beti Padhao and Pradhan Mantri
Mahila Shakti Kendra programmes in the Union Budget 2023–24. She stated in this year's interim budget
that 83 lakh self-help groups (SHGs), including over nine crore women, have been empowering and
transforming the rural socioeconomic environment in a good way.

Almost one crore women have already benefited from these SHGs' assistance in becoming "Lakhpati
Didi" (women having a net worth of more than one lakh). The administration has chosen to increase the
goal for "Lakhpati Didi" from 2 crore to 3 crore in light of this achievement.

Green Development
During the Amrit Kaal, one of the top seven priorities, or "Saptarishis," was green growth. In order to
lower carbon intensity and provide new green employment possibilities, the Union Budget 2023–24
placed a strong emphasis on implementing green fuel, energy, and construction practices. The FM
Sitharaman interim Budget 2024 had a number of initiatives aimed at achieving the 'net zero' goal by
2070

Achievements and Other Key Differences:

• Per capita income has more than doubled to ₹1.97 lakh in around nine years. Indian economy has
increased in size from being 10th to 5th largest in the world in the past nine years.
• EPFO membership has more than doubled to 27 crore.
• 7,400 crore digital payments of ₹126 lakh crore have taken place through UPI in 2022.
• 11.7 crore household toilets constructed under Swachh Bharat Mission.
• 9.6 crore LPG connections provided under Ujjwala.
• 220 crore covid vaccination of 102 crore persons.
• 47.8 crore PM Jan Dhan bank accounts.
• Insurance cover for 44.6 crore persons under PM Suraksha Bima and PM Jeevan Jyoti Yoja
• ₹20 lakh crore agricultural credit targeted at animal husbandry, dairy and fisheries
• ₹35,000 crore outlay for energy security, energy transition and net zero objectives.
• Rebate limit of Personal Income Tax to be increased to Rs. 7 lakh from the current Rs. 5 lakh in
the new tax regime. Thus, persons in the new tax regime, with income up to Rs. 7 lakh to not pay
any tax.
• Tax structure in new personal income tax regime, introduced in 2020 with six income slabs, to
change by reducing the number of slabs to five and increasing the tax exemption limit to Rs. 3 lakh.
Change to provide major relief to all tax payers in the new regime.
• A capital outlay of Rs. 2.40 lakh crore has been provided for the Railways, which is the highest
ever outlay and about nine times the outlay made in 2013-14.
• Building on the massive tripling of the capital expenditure outlay in the past 4 years resulting in a
huge multiplier impact on economic growth and employment creation, the outlay for the next year
is being increased by 11.1 percent to 11.11 lakh crore, announced the FM. This is 3.4 percent of the
GDP.
• While no changes were seen in the tax regime in this budget, the FM announced that over the last
10 years, tax collections have more than doubled. She also pointed out that the average processing
time of tax returns was reduced to 10 days this year.
• FM Sitharaman announced that 40,000 normal rail bogies will be converted to Vande Bharat to
enhance the safety, convenience, and comfort of passengers. Key rail infrastructure projects
including Metro Rail and Namo Bharat will be expanded to more cities.
• FM announced that eighty-three lakh SHGs (self-help groups) with nine crore women are
transforming the rural socio-economic landscape with empowerment and self-reliance. Their
success has assisted nearly one crore women to become ‘Lakhpati Didi’ already. Buoyed by the
success, it has been decided to enhance the target for ‘Lakhpati Didi’ from 2 crore to 3 crore.
• Through roof-top solarisation, 10 million households will be enabled to obtain up to 300 units of
free electricity every month. This scheme follows the resolve of the Prime Minister on the historic
day of the consecration of Shri Ram Mandir in Ayodhya, said FM Nirmala Sitharaman.
• FM announced that states will be encouraged to take up comprehensive development of iconic
tourist centers' branding and marketing at a global scale.
WHERE RUPEE COMES FROM?

2024-25

2023-24
WHERE RUPEE GOES TO?

2024-25

2023-24
CONCLUSION
The analysis of the Union Budgets for 2023-24 and 2024-25 of the Indian Union Government reveals
significant shifts and priorities in fiscal policies and economic strategies. The tax structure updates,
particularly the increase in the tax exemption limit to ₹7 lakh in the new regime, aim to provide relief to
taxpayers and stimulate consumption. However, no changes in tax rates or import duties signify a stability-
focused approach to revenue generation.

The substantial increase in infrastructure allocation to ₹1.10 lakh crore demonstrates a strong commitment
to development projects and job creation. This boost in infrastructure spending aligns with efforts to
enhance economic growth and productivity. Furthermore, the emphasis on rural economy and agriculture
through the establishment of a new agency and post-harvest investment initiatives signifies a targeted
approach to rural development and farmer welfare.

Empowerment initiatives like Beti Bachao Beti Padhao, support for self-help groups, and the goal to create
more "Lakhpati Didis" underscore the government's commitment to gender equality and socio-economic
empowerment. Additionally, the focus on green development, energy transition, and achieving 'net zero'
goals by 2070 reflects a forward-looking approach towards sustainable growth and environmental
stewardship.

In conclusion, the comparative analysis of the Union Budgets for 2023-24 and 2024-25 showcases a blend
of continuity and innovation in fiscal policies, with an overarching focus on inclusive growth, infrastructure
development, empowerment, and sustainability. These budgetary measures are aimed at navigating
economic challenges while fostering long-term resilience and progress for India's economy and society.
REFERENCES
❖ Union Budget Website (https://www.indiabudget.gov.in/previous_union_budget.php
❖ https://www.livemint.com/budget/budget-2023-vs-interim-budget-2024-a-comparative-analysis-
11706784602251.html
❖ https://paytm.com/blog/tax/key-highlights-of-union-budget/
❖ https://www.wionews.com/india-news/interim-budget-2024-how-is-it-different-from-union-
budget-2023-here-are-five-key-points-685998
❖ https://www.wionews.com/india-news/interim-budget-2024-how-is-it-different-from-union-
budget-2023-here-are-five-key-points-685998