News Excerpt:

The government allocated ₹11,11,111 crore for capital expenditure, representing 3.4 percent of GDP.

Railways:

• The Railway Ministry has been allocated a record ₹2.55 lakh crore for the financial year 2024-25, marking a 4.9% increase from the previous year’s ₹2.43 lakh crore.

• The capital expenditure outlay includes ₹2.52 lakh crore from general revenues, ₹200 crore from the Nirbhaya Fund, ₹3,000 crore from internal resources, and ₹10,000 crore from extra-budgetary resources, totaling ₹2.55 lakh crore. This funding will be utilized for asset acquisition, construction, and replacement.

• The operating ratio, which measures the rupees spent to earn every hundred rupees, was 98.1% for the financial year 2022-23. In the Budget Estimates for 2024-25, this ratio has slightly increased to 98.22%.

• With approvals in place for Kavach 4.0, the implementation of the automatic train protection system will accelerate. Kavach encompasses various components, including hardware, software, and optical fiber.

Pradhan Mantri Gram Sadak Yojana (PMGSY):

• The Finance Minister announced that Phase IV of PMGSY will be launched to provide all-weather connectivity to 25,000 rural habitations which have become eligible in view of their population increase.

• PMGSY launched on 25th December 2000, aims to provide all-weather access to eligible unconnected habitations and is a 100% Centrally Sponsored Scheme.

• As of July 23, 2024, 8,10,083 km of road has been sanctioned, with 7,65,530 km completed. A total of ₹3,24,177 crore has been spent on this scheme.

• In budget following road connectivity projects to be developed at the cost of ₹26,000 Cr

• • Patna-Purnea Expressway

• • Buxar-Bhagalpur Expressway

• • Bodhgaya. Rajgir, Vaishali & Darbhanga spurs

• • Additional 2-lane bridge over river Ganga at Buxar

Industrial Node Development in Gaya:

• The central government will support the development of an industrial node in Gaya, as part of the Amritsar-Kolkata industrial corridor.

• This initiative is in line with the broader ‘Purvodaya’ scheme, which focuses on the development of the eastern region, including Bihar, Jharkhand, West Bengal, Andhra Pradesh, and Odisha.

• The Finance Minister noted that the industrial corridor will drive industrial growth in the Eastern region.

Irrigation and Flood Mitigation:

• The government will provide financial support for irrigation and flood mitigation projects in Bihar, with an estimated cost of ₹11,500 crore through the Accelerated Irrigation Benefit Programme and other sources.

• This includes the Kosi-Mechi intra-state link and 20 other ongoing and new schemes.

• Additionally, a survey and investigation of Kosi-related flood mitigation and irrigation will be conducted.

• The Union budget also announced assistance for flood management, landslides, and related projects in Assam, Himachal Pradesh, Uttarakhand, and Sikkim.

Legislative support for Leasing of aircraft and ships:

• The Finance Minister has proposed legislative measures to support the financing and leasing of aircraft and ships within India, aiming to shield airlines from foreign exchange risks.

• Additionally, there will be an exploration of legislative backing for pooled private equity funds through a variable company structure.

• The Variable Capital Company (VCC), introduced in Singapore in January 2020, is a new corporate structure designed to meet the specific needs of investment funds. A VCC can be established as a single standalone fund or as an umbrella fund with multiple sub-funds, each holding different assets.

• The Finance Minister also provided partial relief to the maintenance, repair, and overhaul (MRO) sector by extending the period allowed for entities to stock imported goods, such as spares and test equipment, before exporting them. The new allowance is one year, up from the previous six-month limit.

Housing Sector:     

• To meet the housing demands of urban poor and middle-class families, the Union Finance Minister has announced a significant investment of ₹10 lakh crore under the PM Awas Yojana-Urban 2.0.
• This includes Central assistance of ₹2.2 lakh crore over the next five years. Additionally, the plan envisages providing interest subsidies to facilitate affordable loans.
• Public-private partnerships will be encouraged to create rental housing with dormitory-style accommodations for industrial workers, supported by viability gap funding and commitments from key industries.
• Furthermore, three crore new houses under the PMAY scheme in both rural and urban areas have been announced.

New Scheme for Tribal Villages:

• The Union government will introduce the PM Janjatiya Unnat Gram Abhiyaan to ensure full saturation of basic facilities for five crore Scheduled Tribe families across 63,000 villages in tribal-majority areas and aspirational districts.
• This scheme is aimed specifically at benefiting Scheduled Tribe populations nationwide.

Border Infrastructure Maintenance:

• The allocation for border infrastructure maintenance and capital outlay has been increased to ₹3,756 crore for the 2024-25 Budget, up by ₹211 crore from last year's ₹3,545 crore allocation.
• The budget for ‘rehabilitation and relief for migrants,’ including Sri Lankan refugees and Tibetans, has also seen an increase from ₹301 crore in the 2023-24 fiscal year to ₹539.72 crore in 2024-25.

Land Records to be Digitized with GIS Mapping:

• The Finance Minister has announced a series of reforms related to land and land use, focusing on identification, planning, and leveraging multiple domains. These reforms will encompass both rural and urban areas and will be completed within three years.

• In rural areas, the reforms will include the assignment of unique land parcel identification numbers, known as Bhu-Aadhaar, for all lands. This will involve the digitization of cadastral maps, surveying of map sub-divisions based on current ownership, establishment of a land registry, and linking it to the farmers' registry.

• In urban areas, land records will be digitized using geographic information system (GIS) mapping. Additionally, an IT-based system for property record administration, updating, and tax administration will be developed.

• The Centre, in collaboration with the States, will also facilitate the implementation of the Digital Public Infrastructure (DPI) in agriculture to cover farmers and their lands within the next three years.

Forensic Infrastructure to Support New Criminal Laws:

• The Ministry of Home Affairs has allocated ₹700 crore for the ‘Modernisation of Forensic Capacity’ and ₹150 crore for the ‘National Forensic Infrastructure Enhancement’ under the new Budget.

• These funds are essential for implementing the three new criminal laws that came into effect on July 1.

• In June, the Cabinet approved a forensics scheme with a total financial outlay of ₹2,254.43 crore for the period 2024-25 to 2028-29.

• Additionally, the Crime and Criminal Tracking Network Systems and the modernization of State police forces, both critical to the new criminal laws, have seen their budget increased from ₹264 crore to ₹520 crore for 2024-25.

Tourism Sector:

• The Union Finance Minister has announced plans to develop the Vishnupath temple in Gaya and the Mahabodhi temple in Bodh Gaya, Bihar, following the successful model of the Kashi-Vishwanath temple corridor, aiming to transform them into major tourist destinations.

• Additionally, the Centre will support the development of Nalanda and Rajgir in Bihar as key tourist centers.

• The Budget also includes the establishment of an industrial node at Gaya along the Amritsar-Kolkata Industrial Corridor.

• Recognizing the strong cultural traditions in the eastern part of the country, the Centre is working on the Purvodaya initiative for the comprehensive development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.

• Efforts to position India as a global tourist destination are expected to create jobs and unlock opportunities in various other sectors.