Nagpur :- As part of their weekly meeting Progress Pulse, The VED Council recently organised a comprehensive panel discussion on the Union Budget 2024. Dr. Tejinder Singh Rawal, Chartered Accountant, moderated the session. The Panelists included Dr. Meena Rajesh, Vice Chancellor of Raisoni Agriculture University, Madhya Pradesh, CA Premlata Saboo, CA. Julfesh Shah CA Naresh Jakhotia. Rina Sinha, President VED introduced Dr. T S Rawal, introduced the subject and explained the theme of the budget. Dr. T S Rawal highlighted that setting a fiscal deficit target of 5.8% of GDP for 2024-25, a slight reduction from the previous year’s 5.9%, is a high-wire act without a safety net. He likened the marginal improvement to a trapeze artist balancing on a thin wire, emphasising that the increased capital expenditure, projected to rise by 11.1% to Rs 11.11 lakh crore, must spur economic growth to offset the fiscal burden.
Dr. Rawal further elaborated that the success of this strategy hinges on the efficient and timely execution of infrastructure projects, historically plagued by delays, cost overruns, and bureaucratic inertia. He noted that the government’s borrowing plan of Rs 14.13 trillion, although lower than the previous year, still reflects significant fiscal stress and raises questions about long-term sustainability. The Union Budget 2024-25 presents an ephemeral vision of growth and development, tempered with cautious fiscal prudence. The Government’s ability to navigate the complexities of fiscal management, infrastructure development, social welfare, and global economic dynamics will determine the budget’s success. The balance between aspiration and feasibility will be crucial in steering India towards its goal of becoming a developed nation by 2047.
Dr. Meena Rajesh, Vice Chancellor of Raisoni University, Madhya Pradesh, discussed the proposed reforms in agriculture. She emphasised that the agriculture sector in India supports 42.3% of the population and contributes 18.2% to the GDP. Despite its significance, challenges persist that hinder its full potential. Key proposals include transforming agriculture research with a comprehensive review of the setup to focus on raising productivity and developing climate- resilient varieties. Funding will be provided in challenge mode, including to the private sector, with domain experts overseeing the research. Additionally, 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops will be released for cultivation. In the next two years, 1 crore farmers will be initiated into natural farming, supported by certification and branding, with the establishment of 10,000 need-based bio-input resource centres. Missions for pulses and oilseeds will strengthen production, storage, and marketing to achieve self- sufficiency, and a strategy is being developed to achieve “Atmanirbharta” for oil seeds such as mustard, groundnut, sesame, soybean, and sunflower. Large-scale clusters for vegetable production will be developed closer to major consumption centres, promoting Farmer-Producer Organizations, cooperatives, and start-ups for vegetable supply chains. The government, in partnership with the states, will facilitate the implementation of Digital Public Infrastructure (DPI) in agriculture, aiming to cover farmers and their lands in 3 years. During this year, digital crop surveys for Kharif will be conducted in 400 districts, bringing details of 6 crore farmers and their lands into farmer and land registries.
CA Premlata Daga spoke about reforms in education and skill development. She highlighted the Employment Linked Incentive Schemes, which include three schemes to incentivize employment: providing wage support for new workforce entrants, job creation in the manufacturing sector, and support for employers to cover additional employment. To enhance the participation of women in the workforce, working women hostels and women-specific skilling programs will be established. A centrally sponsored scheme will skill 20 lakh youth over 5 years, upgrade 1,000 Industrial Training Institutes, and align course content with industry demand. The Model Skill Loan Scheme will be revised to facilitate loans up to INR 7.5 lakh, benefiting 25,000 students annually. Additionally, financial support for loans up to INR 10 lakh for higher education will be provided to youth not covered under any benefit under government schemes and policies.
CA Naresh Jakhotia discussed amendments in direct taxes, including the abolition of the angel tax for all classes of investors and a simpler tax regime for foreign shipping companies operating domestic cruises. To further promote the development of the diamond cutting and polishing sector, safe harbour rates will be applied for foreign mining companies selling raw diamonds in the country. To attract foreign capital for India’s development needs, the corporate tax rate on foreign companies will be reduced from 40% to 35%.
CA Varun Vijaywargi spoke about GST amendments
CA Julfesh Shah addressed MSME reforms. Shah highlighted a credit guarantee scheme for MSMEs in the manufacturing sector, facilitating term loans for the purchase of machinery and equipment without collateral or third-party guarantees. A new assessment model for MSME credit will be developed, based on the scoring of digital footprints of MSMEs in the economy, to improve over the traditional asset or turnover-based assessment. Additionally, a new mechanism for facilitating continuation of bank credit to MSMEs during their stress period was announced, supported by a guarantee from a government-promoted fund. The limit of Mudra loans will be enhanced to INR 20 lakh for entrepreneurs who have availed and successfully repaid previous loans under the Tarun category.
President Rina Sinha emphasised to the panel and the large gathering that the insights of the discussion will pave the way to the thrust areas of VED council for the economic development of the region. VED’s monthly magazine Progress Pulse was released by the editor Wagh and the dignitaries.
New members Nitin Jeswani, AliAsger Wagh and Gaurav Taori were inducted. Amit Parekh, Secretary General, proposed a vote of thanks.
