Budget 2024: What is NPS Vatsalya, a plan by parents for their minor children?

During the Budget 2024 speech, Finance Minister Nirmala Sitharman announced NPS Vatsalya, which is a plan catering to parents and guardians for their minor children.

“NPS Vatsalya, a plan for contribution by parents and guardians for minors will start,” she said.

The unique thing about the plan is that the plan can be converted into a non-NPS plan once the child attains majority.

“On attaining the age of majority, the plan can be converted seamlessly into a non-NPS plan,” she added during her Budget speech.

The Budget Session of Parliament began on July 22 and Sitharaman tabled the 2024 Economic Survey document a day ahead of the Union Budget due today. The Session is likely to have 16 sittings over 22 days, and is expected to conclude on August 12.

Highlights from Budget so far

Employment and Skilling:

Five schemes to focus on 4.1 crore youth over 5 years with a central outlay of ₹2 lakh crore

Comprehensive internship scheme for one crore youth in top companies over five years

Employment-linked incentives, including one month's wage support for first-time employees

Women-specific skilling programs and increased workforce participation

MSME and Manufacturing Support:

Special attention to MSMEs and manufacturing sector

Credit guarantee scheme and term loans for machinery purchase

Technology support package for MSMEs

SIDBI to open 24 new branches to serve MSME clusters

Financial Initiatives:

Mudra loan limit increased from ₹10 lakh to ₹20 lakh for previous borrowers

Financial support for higher education loans up to ₹10 lakhs in domestic institutions

Integrated technology system for Insolvency and Bankruptcy Code (IBC)

Agriculture and Rural Development:

₹2.66 lakh crore provision for rural development

Transformation of agricultural research to focus on productivity and climate-resilient crop varieties

Initiative to introduce 1 crore farmers to natural farming over 2 years

Infrastructure and Regional Development:

Rental housing in PPP mode for industrial workers

Special financial support of ₹15,000 crore for Andhra Pradesh

New airports, medical facilities, and sports infrastructure for Bihar

Economic Outlook:

Inflation moving towards 4% target

India's economic growth described as a "shining exception"

Focus on job creation and boosting consumption, potentially benefiting consumer goods, real estate, and auto sectors

Nine Priority Areas: Agriculture, Employment, Inclusive Development, Manufacturing and Services, Urban Development, Energy, Infrastructure, Innovation and R&D, and Next Generation Reforms.

Women-Led Development: Over ₹3 lakh crore allocated for schemes benefiting women and girls.

Social Welfare: Extension of PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana) for five years, benefiting over 80 crore people

Digital and Technological Advancements: Development of Digital Public Infrastructure (DPI) applications for credit, e-commerce, law and justice, and corporate governance.