source: (indiabudget.gov.in)
Introduction:
Indian Union Government announced the “Interim Budget” for the financial year 2024-25 on 1st February 2024. It was presented by the Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman in the Parliament. The budget is seen an essential document for the Indian Economy and its future. This is Sitharaman’s first interim budget to be announced.
The budget outlines key economic projections, policy initiatives, and strategic directions for India’s development. It offers some portion to the environmental industry including the use of renewable resources and efficient development of green energy. It designates the amount of carbon to be emitted by vehicles, fixes the expenditure on e-vehicles. Innovations based on science to tackle the pollution crisis are inculcated in the budget like greener methods of production in the economic industry. This budget also remains as one of the environment conscious budgets by increasing the amount of solar panels installed, this will not only reduce our dependency on fossil fuels but also create a space for tech-savvy youth to build better technologies for the future of India.
Key highlights:
The major focus of the Interim Budget was on inclusive growth and a detailed roadmap for a developed India by 2047. It can be summarized as:
Economic Sector-
The revised Fiscal deficit in FY25 is expected to be 5.1% of GDP.
No changes to income tax slabs. Tax exemptions given to start-ups extended till March 31, 2025.
Railways programs-
Three major economic railway corridor programs (energy, mineral and cement corridors, port connectivity corridors, and high traffic density corridors) were announced.
Education & Research-
Setting up more medical colleges through utilization of the existing hospital infrastructure under various departments. This will make people more aware that how climate change and global warming is constantly degrading the human body. This can spread as one of the organic and eco-friendly way to save the biosphere.
A new scheme to be launched for strengthening deep-tech technologies for defense purposes and expediting ‘atmanirbharta’ which will also help the youth to become more environment inclined.
Environment Industry-
The government aims to achieve ‘net zero’ by 2070. Net Zero is a condition completely negating the amount of greenhouse gases produced by human activity.
Coal gasification and liquefaction capacity of 100 MT to be set up by 2030.
Phased mandatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes to be mandated.
The phased mandatory blending of compressed biogas (CBG) with compressed natural gas (CNG) for transportation and piped natural gas or PNG for domestic purposes is compulsory from now on. CBG is produced from biomass, and it is a much easier way of reduction of waste material and alongside increasing the renewable sources utilization.
MoEFCC (Ministry of Environment, Forests and Climate Change) budget allocation has been increased which gives a positive message to the society to live more consciously and practice sustainable development at the individual level.
Tourism sector-
States to be encouraged to take up comprehensive development of iconic tourist centers including their branding and marketing at global scale.
Framework for rating of the tourist centers based on quality of facilities and services to be established.
The budget supports e-tourism which is a great way to connect to the people outside India. While this increases the brand value of India, it also provides with more revenue.
Recently, Lakshadweep is considered to be budding tourist spot which if practices sustainability can empower the growing youth as well as help reach India the “17 Sustainable Goals”.
The four Pillars of the Indian Economy:
Garib Kalyan, Desh ka Kalyan’
DBT of Rs. 34 lakh crore using PM-Jan Dhan accounts led to savings of Rs. 2.7 lakh crore for the Government.
Focus on Environment Industry:
The environment industry needed a revival as the global temperatures keep soaring high. The Interim Budget launched has a few shortcomings, there were some reductions in the allocation in some sectors as in the case of e-vehicle ecosystem which is a potential resource in terms of sustainability. There were major increments in many sectors also which may lead India to reach the “Agenda 21” as soon as possible.
New Milestones-
10 million houses to be brought under rooftop solar scheme and provided 300 units of free electricity each month. This reduces the dependence on fossil-fuels.
Coal gasification and liquefaction of 100 tones capacity to be set up by 2030.
The budget allocated Rs 35,000 crore for priority investments in energy transition and Net Zero. Of this amount, Rs 30,000 crore was designated to provide capital support to oil marketing companies for undertaking projects for energy transition, energy security and achieving Net Zero emissions by 2070.
In the context of biofuels and blending, the phased mandatory blending of compressed biogas (CBG) with compressed natural gas (CNG) for transportation and piped natural gas or PNG for domestic purposes will be mandated. CBG is produced from biomass.
Allocation of funds-
National Green Hydrogen Mission allocation has increased from Rs 100 crore in 2023-24 to Rs 600 crore in 2024-25.
Union Ministry of Environment, Forests, and Climate Change’s (MoEFCC) budget estimate raised to Rs 3,265.53 crore from Rs 3,079.4 crore in 2023-24.
Wind power allocation has increased from Rs 916 crores in 2023-24 to Rs 930 crore in 2024-25. Viability gap funding will be provided for offshore wind energy for an initial capacity of 1 Gigawatt (GW).
Union Ministry of New and Renewable Energy’s (MNRE) budget estimate increased to Rs 12,850 crore from Rs 10,222 crore in 2023-24.
The budgetary estimate for the Scheme for Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME-India) has been reduced to Rs 2,671 crore in 2024-25 from Rs 4,807 crore in 2023-24.
Shift to Blue Economy-
The concept of Blue Economy 2.0 is interconnected with the Blue Revolution, which focuses on the productivity of the fisheries sector. The budget estimate for the Blue Revolution has been increased to Rs 2,352 crore in 2024-25 from Rs 1,500 crore in 2023-24.
In terms of ministerial allocation, MoEFCC (Ministry of Environment, Forests and Climate Change) has been allocated a higher budget estimate of Rs 3,265.53 crore compared to Rs 3,079.4 crore in 2023-24.
The budget estimate for MNRE (Ministry of New and Renewable Energy) has increased to Rs 12,850 crore in the latest budget from Rs 10,222 crore in the previous year.
Comparative Analysis of Budget Allocation for Environment Industry:
The focus on environment has increased rapidly over the last five years. This is in response to the growing climatic worry and global warming. As evident from the last five-year budget data:
Financial Year 2019-20
Focus- E-Vehicle.
Encouragement of usage of E-vehicles to tackle air pollution. A grant for the Boost to Electric Vehicles. Additional income tax deduction of Rs. 1.5 lakh on interest paid on electric vehicle loans.
Financial Year 2020-21
Focus- Renewable Resources.
It aimed at cleaner air initiatives. Proposed to advise the utilities to close the running old thermal power plants with carbon emission above the pre-set norms. States that are formulating and implementing plans for ensuring cleaner air in cities above one million to be encouraged. PM launched Coalition for Disaster Resilient Infrastructure (CDRI) with Secretariat in Delhi.
Financial Year 2021-22
Focus- Air Pollution and Scrap Material.
Rs. 2,217 crores to tackle air pollution, for 42 urban centers with a million-plus population. Voluntary vehicle scrapping policy to phase out old and unfit.
Financial Year 2022-23
Focus- Biogas, Air Pollution, Stubble Burning.
Additional allocation of Rs. 19,500 crores for Production Linked Incentive for manufacture of high efficiency solar modules to meet the goal of 280 GW of installed solar power by 2030. Five to seven per cent biomass pellets to be co-fired in thermal power plants CO2 savings of 38 MMT annually, Extra income to farmers and job opportunities to locals, Help avoid stubble burning in agriculture fields. Four pilot projects to be set up for coal gasification and conversion of coal into chemicals for the industry. Financial support to farmers belonging to Scheduled Castes and Scheduled Tribes, who want to take up agro-forestry.
Financial Year 2023-24
Focus- Waste Management, Biogas, Fertilizer Improvisation, Pollution Control, Climate Action
500 new ‘waste to wealth’ plants under GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme to be established for promoting circular economy at total investment of Rs 10,000 crore. 5 per cent compressed biogas mandate to be introduced for all organizations marketing natural and bio gas. Centre to facilitate one crore farmers to adopt natural farming over the next three years. For this, 10,000 Bio-Input Resource Centres to be set-up, creating a national-level distributed micro-fertilizer and pesticide manufacturing network.
With the coming years, the allocation of funds for the environmental sector has raised upwards and the government strives to continue with tackling major issues of the environment.
The budget 2024-25 is one of the most important documents in our movement to save environment as it provides with funds and tools to undergo an extensive awareness program and cleaning process to clean our Indian Land. Let’s hope that the upcoming financial year proves fruitful to the Future of the country in providing with better sustainability practices and spreading the message of the earth to its children that – “SAVE ENVIRONMENT, SAVE LIFE”.
References:
Press Information Bureau (pib.gov.in)
Interim Union Budget 2024-25 Analysis (prsindia.org)
Budget 2024 & Sustainability: Indian Inc. Takeaways (outlookindia.com)
Budget 2024 Key Highlights: Income tax, infra, railways, EVs and more - 15 key takeaways from FM Sitharaman's speech | Mint (livemint.com)
Budget 2024 Key Highlights: Fiscal deficit target for 2024-25 at 5.1% of GDP; no changes to income tax slabs | Business News - The Indian Express
Key takeaways from interim Budget 2024-25 in charts - The Hindu
Written by-
Aditi Sharma
B.Sc. (H) Chemistry II Year
MHV Volunteer
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