Union Budgets 2024-25 Related FAQs Questions and Answers

The Union Budget for 2024-25 marks a significant milestone in India’s financial planning and economic strategy. As the nation continues to navigate through global economic challenges and domestic aspirations, this budget serves as a crucial roadmap for the country’s fiscal policies and development goals. To help citizens, analysts, and stakeholders better understand the intricacies of this year’s budget, we have compiled a comprehensive set of Frequently Asked Questions (FAQs) along with their answers.

These FAQs cover a wide range of topics related to the Union Budget 2024-25, including key allocations, policy changes, tax reforms, and economic projections. By providing clear and concise answers to common queries, we aim to demystify the budget process and make its contents more accessible to the general public. Whether you’re a student, a professional, or simply an interested citizen, these FAQs will offer valuable insights into the government’s financial plans and priorities for the coming fiscal year.

Q1. What is the total expenditure estimated in the Union Budget 2024-25?
a) `32.07 lakh crore
b) `48.21 lakh crore
c) `25.83 lakh crore
d) `15.00 lakh crore
e) `10.00 lakh crore

Q2. What is the fiscal deficit target for 2024-25 as a percentage of GDP?
a) 3.5%
b) 4.5%
c) 4.9%
d) 5.2%
e) 6.0%

Q3. What is the estimated net tax receipt for 2024-25?
a) `25.83 lakh crore
b) `32.07 lakh crore
c) `48.21 lakh crore
d) `20.00 lakh crore
e) `30.00 lakh crore

Q4. The budget focuses on which four main areas?
a) Agriculture, Industry, Infrastructure, Healthcare
b) Employment, Skilling, MSMEs, Middle Class
c) Education, Research, Environment, Energy
d) Technology, Defense, Social Welfare, Transport
e) Tourism, Finance, Housing, Law

Q5. How much financial support is provided under Scheme A of the Prime Minister’s Package for first-time employees?
a) `10,000
b) `12,000
c) `15,000
d) `20,000
e) `25,000

Q6. How many youth are targeted for skilling under the new centrally sponsored scheme?
a) 10 lakh
b) 15 lakh
c) 20 lakh
d) 25 lakh
e) 30 lakh

Q7. What is the total allocation for agriculture and allied sectors in the budget?
a) `1.00 lakh crore
b) `1.25 lakh crore
c) `1.52 lakh crore
d) `1.75 lakh crore
e) `2.00 lakh crore

Q8. How many high-yielding and climate-resilient crop varieties are to be released?
a) 50
b) 75
c) 100
d) 109
e) 120

Q9. What is the target number of farmers to be initiated into natural farming?
a) 50 lakh
b) 75 lakh
c) 1 crore
d) 1.5 crore
e) 2 crore

Q10. How many bio-input resource centres are to be established for natural farming?
a) 5,000
b) 7,500
c) 10,000
d) 15,000
e) 20,000

Q11. Which scheme supports employers with EPFO contributions for additional employees?
a) Scheme A
b) Scheme B
c) Scheme C
d) Scheme D
e) Scheme E

Q12. How much financial support is allocated for loans up to for higher education in domestic institutions?
a) `5 lakh
b) `7.5 lakh
c) `10 lakh
d) `12.5 lakh
e) `15 lakh

Q13. Which industrial node is to be developed along the Amritsar-Kolkata Industrial Corridor?
a) Bengaluru
b) Chennai
c) Gaya
d) Hyderabad
e) Vishakhapatnam

Q14. How much financial support is allocated for the Andhra Pradesh Reorganization Act in the current financial year?
a) `10,000 crore
b) `12,000 crore
c) `15,000 crore
d) `18,000 crore
e) `20,000 crore

Q15. How many bank branches of India Post Payment Bank are to be set up in the North East region?
a) 50
b) 75
c) 100
d) 125
e) 150

Q16. What is the limit of Mudra loans under the ‘Tarun’ category after enhancement?
a) `10 lakh
b) `15 lakh
c) `20 lakh
d) `25 lakh
e) `30 lakh

Q17. How many e-commerce export hubs are to be set up under public-private partnership mode?
a) 10
b) 25
c) 50
d) 75
e) 100

Q18. Which policy is to be formulated for electricity storage projects?
a) Solar Energy Policy
b) Wind Energy Policy
c) Hydro Energy Policy
d) Pumped Storage Policy
e) Biomass Energy Policy

Q19. What is the total capital expenditure allocation for infrastructure investment by the Central Government?
a) `5,00,000 crore
b) `7,50,000 crore
c) `10,00,000 crore
d) `11,11,111 crore
e) `12,00,000 crore

Q20. How much financial support is provided for long-term interest-free loans to states for infrastructure investment?
a) `1 lakh crore
b) `1.25 lakh crore
c) `1.5 lakh crore
d) `1.75 lakh crore
e) `2 lakh crore

Q21. How many rural habitations are targeted for all-weather connectivity under PMGSY Phase IV?
a) 10,000
b) 15,000
c) 20,000
d) 25,000
e) 30,000

Q22. Which temples are included in the comprehensive development plan under the tourism priority?
a) Kedarnath, Badrinath
b) Vishnupad, Mahabodhi, Rajgir
c) Tirupati, Vaishno Devi
d) Somnath, Dwarka
e) Jagannath, Puri

Q23. What is the financing pool allocated for the Anusandhan National Research Fund?
a) `50,000 crore
b) `75,000 crore
c) `1 lakh crore
d) `1.25 lakh crore
e) `1.5 lakh crore

Q24. How much is the venture capital fund for expanding the space economy?
a) `500 crore
b) `750 crore
c) `1,000 crore
d) `1,250 crore
e) `1,500 crore

Q25. What is the name of the unique identification number for all lands proposed under the next generation reforms?
a) Land ID
b) Parcel ID
c) Bhu-Aadhaar
d) Land Code
e) Geo-ID

Q26. Which sector is targeted for new energy transition pathways policy?
a) Agriculture
b) Transport
c) Energy
d) Manufacturing
e) Services

Q27. What is the new standard deduction for salaried employees under the revised tax rate structure?
a) `50,000
b) `60,000
c) `70,000
d) `75,000
e) `80,000

Q28. What is the TDS rate on e-commerce operators after the reduction?
a) 1%
b) 0.75%
c) 0.5%
d) 0.25%
e) 0.1%

Q29. How much deduction is allowed for family pensioners under the new tax regime?
a) `15,000
b) `20,000
c) `25,000
d) `30,000
e) `35,000

Q30. Which cancer drugs are fully exempted from customs duty?
a) Herceptin, Tamoxifen, Imatinib
b) Trastuzumab Deruxtecan, Osimertinib, Durvalumab
c) Docetaxel, Paclitaxel, Pemetrexed
d) Cyclophosphamide, Methotrexate, Cisplatin
e) Vincristine, Doxorubicin, Epirubicin

Q31. What is the new basic customs duty on gold and silver?
a) 5%
b) 6%
c) 6.4%
d) 7%
e) 7.5%

Q32. What is the basic customs duty on ammonium nitrate after the increase?
a) 5%
b) 7.5%
c) 10%
d) 12.5%
e) 15%

Q33. How much financial support is allocated for projects such as the Kosi-Mechi intra-state link?
a) `5,000 crore
b) `7,500 crore
c) `10,000 crore
d) `11,500 crore
e) `12,000 crore

Q34. Which initiative is to connect job-aspirants with potential employers and skill providers?
a) NPS-Vatsalya
b) Skill India Mission
c) e-Shram Portal
d) Make in India
e) Digital India

Q35. What is the reduced corporate tax rate for foreign companies?
a) 20%
b) 25%
c) 30%
d) 35%
e) 40%

Q36. What is the new tax rate on short-term capital gains on certain financial assets?
a) 10%
b) 15%
c) 20%
d) 25%
e) 30%

Q37. What is the exemption limit of capital gains on certain financial assets?
a) `50,000
b) `75,000
c) `1 lakh
d) `1.25 lakh
e) `1.5 lakh

Q38. How much deduction is allowed for employer’s contribution towards NPS?
a) 10%
b) 12%
c) 14%
d) 16%
e) 18%

Q39. What is the revised TDS rate on repurchase of units by mutual funds or UTI?
a) 10%
b) 12%
c) 15%
d) 18%
e) 20%

Q40. Which tax levy is withdrawn in the Finance Bill 2024-25?
a) Securities Transaction Tax
b) Capital Gains Tax
c) Equalization Levy
d) Service Tax
e) Value Added Tax

Q41. What is the tax rate on income from buyback of shares in the hands of recipients?
a) 10%
b) 15%
c) 20%
d) 25%
e) 30%

Q42. What is the customs duty on mobile phones after reduction?
a) 10%
b) 12%
c) 15%
d) 18%
e) 20%

Q43. What is the customs duty on PVC flex banners after increase?
a) 10%
b) 15%
c) 20%
d) 25%
e) 30%

Q44. Which sector’s MRO (Maintenance, Repair, and Overhaul) time period for export of goods imported for repairs is extended?
a) Automotive
b) Aerospace
c) Marine
d) Telecommunications
e) Domestic aviation and boat & ship

Q45. What is the concessional basic customs duty on copper scrap?
a) 1%
b) 2%
c) 2.5%
d) 3%
e) 3.5%

Q46. What is the revised tax rate structure for income between 3-7 lakh rupees?
a) 0%
b) 5%
c) 10%
d) 15%
e) 20%

Q47. What is the new TDS rate on payments merged from 5% rate?
a) 1%
b) 1.5%
c) 2%
d) 2.5%
e) 3%

Q48. What is the fiscal target for the government to achieve next year?
a) Below 3%
b) Below 3.5%
c) Below 4%
d) Below 4.5%
e) Below 5%

Q49. What is the custom duty on platinum after reduction?
a) 5%
b) 6%
c) 6.4%
d) 7%
e) 7.5%

Q50. How many new power plants are proposed under the Purvodaya initiative?
a) 2
b) 3
c) 4
d) 5
e) 6

Solutions

Ans 1: b) `48.21 lakh crore

Solution: The budget specifies a total expenditure of `48.21 lakh crore for the financial year 2024-25, which covers various government expenses including developmental projects, subsidies, and other operational costs.

Answer 2: c) 4.9%

Solution: The fiscal deficit for 2024-25 is targeted at 4.9% of GDP, indicating the gap between the government’s total expenditure and its total receipts (excluding borrowings).

Answer 3: a) `25.83 lakh crore

Solution: The budget estimates net tax receipts at `25.83 lakh crore for 2024-25, which includes revenues from income tax, corporate tax, GST, and other taxes.

Answer 4: b) Employment, Skilling, MSMEs, Middle Class

Solution: The budget particularly emphasizes employment generation, skill development, support for MSMEs (Micro, Small, and Medium Enterprises), and benefits for the middle class.

Answer 5: c) `15,000

Solution: Scheme A provides a one-month salary of up to `15,000 in 3 installments to first-time employees registered in the EPFO (Employees’ Provident Fund Organisation).

Answer 6: c) 20 lakh

Solution: The new centrally sponsored scheme aims to skill 20 lakh youth over a five-year period to enhance their employability and productivity.

Answer 7: c) `1.52 lakh crore

Solution: The allocation for agriculture and allied sectors is `1.52 lakh crore, which will be used for various schemes and initiatives to boost agricultural productivity and resilience.

Answer 8: d) 109

Solution: The budget plans to release 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops to help farmers cope with climate change and increase yields.

Answer 9: c) 1 crore

Solution: The target is to initiate 1 crore farmers into natural farming practices, which are more sustainable and environmentally friendly, over the next two years.

Answer 10: c) 10,000

Solution: The government plans to establish 10,000 bio-input resource centres to support natural farming by providing necessary inputs like bio-fertilizers and bio-pesticides.

Answer 11: c) Scheme C

Solution: Scheme C supports employers by reimbursing up to `3,000 per month for 2 years towards EPFO contribution for each additional employee.

Answer 12: c) `10 lakh

Solution: Financial support is provided for loans up to `10 lakh for higher education in domestic institutions to help students who are not eligible for other government schemes.

Answer 13: c) Gaya

Solution: An industrial node at Gaya is to be developed along the Amritsar-Kolkata Industrial Corridor to boost industrialization and economic development in the region.

Answer 14: c) `15,000 crore

Solution: `15,000 crore is allocated for the Andhra Pradesh Reorganization Act in the current financial year to support the state’s development needs.

Answer 15: c) 100

Solution: 100 branches of India Post Payment Bank are to be set up in the North East region to enhance financial inclusion and accessibility.

Answer 16: c) `20 lakh

Solution: The limit of Mudra loans under the ‘Tarun’ category is enhanced to 20 lakh from 10 lakh to support small businesses and entrepreneurs.

Answer 17: e) 100

Solution: E-commerce export hubs are to be set up under PPP mode for MSMEs and traditional artisans to sell their products in international markets.

Answer 18: d) Pumped Storage Policy

Solution: The government plans to formulate a policy for promoting pumped storage projects for electricity storage, which will help in managing peak loads and ensuring energy security.

Answer 19: d) `11,11,111 crore

Solution: The total capital expenditure for infrastructure investment by the Central Government is `11,11,111 crore (3.4% of GDP), aimed at boosting infrastructure development across the country.

Answer 20: c) `1.5 lakh crore

Solution: `1.5 lakh crore is allocated for long-term interest-free loans to states for infrastructure investment to support their developmental projects.

Answer 21: d) 25,000

Solution: PMGSY Phase IV aims to provide all-weather connectivity to 25,000 rural habitations to enhance rural infrastructure and connectivity.

Answer 22: b) Vishnupad, Mahabodhi, Rajgir

Solution: The comprehensive development plan includes Vishnupad Temple Corridor, Mahabodhi Temple Corridor, and Rajgir to promote tourism and cultural heritage.

Answer 23: c) `1 lakh crore

Solution: The financing pool for the Anusandhan National Research Fund is `1 lakh crore to support basic research and prototype development.

Answer 24: c) `1,000 crore

Solution: A venture capital fund of `1,000 crore is to be set up for expanding the space economy by 5 times in the next 10 years.

Answer 25: c) Bhu-Aadhaar

Solution: The unique identification number for all lands is proposed to be called Bhu-Aadhaar.

Answer 26: c) Energy

Solution: The new energy transition pathways policy targets the energy sector to balance employment, growth, and environmental sustainability.

Answer 27: d) `75,000

Solution: The standard deduction for salaried employees is increased to `75,000 under the revised tax rate structure.

Answer 28: e) 0.1%

Solution: The TDS rate on e-commerce operators is reduced from 1% to 0.1% to ease the tax burden and promote digital transactions.

Answer 29: c) `25,000

Solution: The deduction for family pensioners is enhanced to `25,000 under the new tax regime to provide more financial relief to pensioners.

Answer 30: b) Trastuzumab Deruxtecan, Osimertinib, Durvalumab

Solution: Trastuzumab Deruxtecan, Osimertinib, and Durvalumab are fully exempted from customs duty to make these essential cancer drugs more affordable.

Answer 31: b) 6%

Solution: The customs duty on gold and silver is reduced to 6% to promote the import of these precious metals.

Answer 32: c) 10%

Solution: The basic customs duty on ammonium nitrate is increased from 7.5% to 10% to regulate its import and use.

Answer 33: d) `11,500 crore

Solution: `11,500 crore is allocated for projects like the Kosi-Mechi intra-state link and other related schemes in Bihar to improve irrigation and flood mitigation.

Answer 34: c) e-Shram Portal

Solution: The e-Shram Portal is designed to connect job-aspirants with potential employers and skill providers, facilitating job matching and skill development.

Answer 35: d) 35%

Solution: The corporate tax rate for foreign companies is reduced from 40% to 35% to attract more foreign investment and promote economic growth.

Answer 36: c) 20%

Solution: Short-term gains on certain financial assets will now attract a tax rate of 20%, standardizing the tax treatment for these gains.

Answer 37: d) `1.25 lakh

Solution: The exemption limit for capital gains on certain financial assets is increased to `1.25 lakh per year to provide tax relief to investors.

Answer 38: c) 14%

Solution: The deduction for the employer’s contribution towards NPS (National Pension System) is increased from 10% to 14% of the employee’s salary to encourage more contributions towards retirement savings.

Answer 39: e) 20%

Solution: The 20% TDS rate on repurchase of units by mutual funds or UTI is withdrawn, simplifying the tax structure for investors.

Answer 40: c) Equalization Levy

Solution: The Equalization Levy of 2% is withdrawn to simplify the tax regime and promote digital businesses.

Answer 41: c) 20%

Solution: The tax rate on income from buyback of shares in the hands of recipients is 20%, which is aimed at aligning with the tax treatment of capital gains.

Answer 42: c) 15%

Solution: The customs duty on mobile phones, mobile Printed Circuit Board Assembly (PCBA), and mobile chargers is reduced to 15% to promote the manufacturing and import of these devices.

Answer 43: d) 25%

Solution: The customs duty on PVC flex banners is increased from 10% to 25% to protect domestic manufacturers and regulate imports.

Answer 44: e) Domestic aviation and boat & ship

Solution: The time period for export of goods imported for repairs in the domestic aviation and boat & ship MRO sector is extended from six months to one year to promote maintenance services in India.

Answer 45: c) 2.5%

Solution: The concessional basic customs duty on copper scrap is set at 2.5% to support the recycling industry and reduce the cost of raw materials.

Answer 46: b) 5%

Solution: The revised tax rate for income between 3-7 lakh rupees is 5%, providing tax relief to individuals in this income bracket.

Answer 47: c) 2%

Solution: The new TDS rate on payments previously subject to a 5% rate is now merged into a 2% rate to simplify the tax structure.

Answer 48: d) Below 4.5%

Solution : The government aims to achieve a fiscal deficit target below 4.5% of GDP in the next year to improve fiscal discipline.

Answer 49: c) 6.4%

Solution: The customs duty on platinum is reduced to 6.4% to promote the import of this precious metal.

Answer 50: b) 3

Solution: The Purvodaya initiative proposes several power projects, including a new 2400 MW power plant at Pirpainti, to boost industrial and economic development in the eastern region of India.