• UGI USER
  • Jul 25, 2024
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FINANCING INDIA’S GREEN FUTURE

Why in the news?

  • The Union Budget 2024 highlights India’s commitment to integrating climate finance with energy transition efforts.
  • Key initiatives include a 60% increase in funding for the Ministry of New & Renewable Energy and prioritizing energy security among the nine budget priorities.
source:Finshot

Key Budget Initiatives

  • Pradhan Mantri Surya Ghar Muft Bijli Yojana: Empowering households with residential solar adoption, seeing 1.28 crore registrations, which drives investment, innovation, and job creation.
  • Duties Adjustments: Imposing duties on solar glass and removing duties on solar cells and panels equipment to boost domestic manufacturing, reduce costs, and attract private capital.

Strategic Measures

  • Critical Mineral Mission: Ensuring energy security by exempting basic Customs duty on 25 essential minerals, supporting the renewable energy sector’s supply chain and competitiveness.
  • Climate Finance Taxonomy: Establishing clear standards for climate finance to channel investments into sustainable projects, aligning with G20 recommendations, and accelerating the green bonds market.
Union Budget Constitutional Provisions

Constitutional Basis:

  • Article 112 of the Indian Constitution mandates the Union Budget as a statement of estimated receipts and expenditures, referred to as the Annual Financial Statement. The term “budget” is not explicitly used in the Constitution.

Key Budget Documents:

  • Annual Financial Statement (Article 112)
  • Demands for Grants (Article 113)
  • Finance Bill (Article 110)
  • Fiscal Policy Statements under the FRBM Act, 2003, including:
  • Macro-Economic Framework Statement
  • Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement

Associated Article:

“https://universalinstitutions.com/budget-2023-environment/”https://universalinstitutions.com/budget-2023-environment/