New Delhi: Finance Minister Nirmala Sitharman has announced a plan to facilitate parents' contribution to their minor children's National Pension System (NPS) account. To be called NPS Vatsalya, the account can be converted into a regular NPS plan once the children attain the age of majority (18 years). Under the NPS Vatsalya plan, guardians can contribute to secure the future of children.
“On attaining the age of majority, the plan can be converted seamlessly into a non-NPS plan,” she added during her Budget speech. She also reiterated that a solution to address the concerns of government employees around NPS will be announced soon.
The Budget Session of Parliament began on July 22 when Sitharaman tabled the 2024 Economic Survey document. The Session is likely to have 16 sittings over a period of 22 days, and is expected to conclude on August 12.
"In the interim budget, we promised to present a detailed roadmap for our pursuit of ‘Viksit Bharat’. In line with the strategy set out in the interim budget, this budget envisages sustained efforts on the following nine priorities for generating ample opportunities for all," the FM said in her speech.
- Productivity and resilience in Agriculture
- Employment & Skilling
- Inclusive Human Resource Development and Social Justice
- Manufacturing & Services
- Urban Development
- Energy Security
- Infrastructure
- Innovation, Research & Development and
- Next Generation Reforms
Additional Financial Initiatives:
- For prior borrowers, the Mudra loan limit raised from ₹10 lakh to ₹20 lakh.
- Assistance in financing loans for higher education in domestic institutions up to ₹10 lakhs
- A two-year plan to train one crore farmers in natural farming
- PPP-style rental apartments for industrial workers
- A special ₹15,00,000 financial assistance program for Andhra Pradesh
- New airports, medical facilities, and infrastructure for Bihar
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