Budget 2025: New Schemes and Reduced Allocations

Why in the news?

The upcoming Union Budget for FY2025-26 highlights newly launched schemes with significant funding and others with reduced allocations. Key sectors like AI, renewable energy, and electric mobility are expected to receive substantial financial support in the budget.

Budget 2025: New Schemes and Reduced Allocations

Recently Launched Schemes (2024-25 Allocations):

  • Solar Rooftop Installation Scheme: ₹6,250 crore for promoting solar rooftops.
  • AI and Technology Initiatives: Includes ₹255 crore for Centres of Excellence in AI and ₹551.75 crore for the India AI Mission.
  • PM Vishwakarma Scheme: ₹600 crore allocated to nurture traditional skill practices.
  • Other Schemes: ₹4,824 crore for Rashtriya Gram Swaraj Abhiyan and ₹1063.67 crore for National Green Hydrogen Mission to make India a global leader in hydrogen production.

Older Schemes with Reduced Allocations:

  • Smart Cities Mission: Allocation significantly reduced compared to earlier years.
  • Regional Connectivity Scheme: Funding has decreased over the years, focusing on improving regional air connectivity.
  • Digital India & Startup India: Allocations reduced, with no funding for promoting digital payments in the last budget.
  • Others: Digital payment promotion and the Prime Minister Employment Generation Programme also saw substantial reductions in allocations.

Key Schemes under Production-Linked Incentive (PLI):

  • Electronics and IT Hardware: ₹6,200 crore allocation for boosting production in electronics.
  • Food Processing Industry: Allocation for PLI scheme to enhance food processing.
  • Electric Mobility: FAME scheme allocated ₹2,671.33 crore, with additional funding for promoting electric two-wheelers and passenger cars.
  • Other PLI Schemes: Including support for industries like drones, footwear, automobiles, and specialty steel production.

Sources Referred:

PIB, The Hindu, Indian Express, Hindustan Times