Finance Minister Nirmala Sitharaman presented her seventh Union Budget for 2024, outlining a vision for India’s economic growth and development. The budget addresses various sectors and introduces significant changes aimed at boosting the economy, creating jobs, and enhancing social welfare.
Economic Outlook and Priorities
Sitharaman highlighted India’s robust economic growth, expected to continue in the coming years, while acknowledging potential risks. The budget focuses on nine key priorities, including agricultural productivity, employment, inclusive human resource development, manufacturing, urban development, energy security, infrastructure, innovation, and next-generation reforms.
Tax Reforms
The new tax regime introduces revised tax slabs, offering relief to salaried employees. Long-term capital gains on all assets will now be taxed at 12.5% with an exemption limit of Rs 1.25 lakh per year. The Securities Transaction Tax (STT) has been increased for futures and options trading.
Fiscal Management
The fiscal deficit is estimated at 4.9% of GDP, with a strong emphasis on infrastructure spending. The government has allocated Rs 11.11 lakh crore for capital expenditure, representing 3.4% of GDP.
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Sector-Specific Initiatives
Agriculture: A comprehensive review of agricultural research to increase productivity and develop climate-resilient crop varieties.
Employment: Introduction of schemes to boost women’s workforce participation and incentivize job creation in manufacturing.
Education: Financial support for higher education loans up to Rs 10 lakh, with a budget allocation of Rs 1.48 lakh crore for education, employment, and skilling.
Startups: Abolishment of Angel tax for all investor classes.
Real Estate: Investment of Rs 10 lakh crore under PM Awas Yojana, Urban 2.0, and measures to make housing more affordable.
Infrastructure: Allocation of Rs 2.66 lakh crore for rural development and Rs 26,000 crore for road connectivity projects.
Research and Development: Establishment of a Rs 1 lakh crore financial pool to spur private-driven research.
Other Key Announcements
- Simplification of FDI rules to facilitate inflow
- Reduction in corporate tax rate for foreign companies from 40% to 35%
- Introduction of NPS Vatsalya programme for parents to invest on behalf of their children
- Establishment of a Rs 1,000 crore venture capital fund for the space economy
- Enhancement of MUDRA loan limits to Rs 20 lakh
- Setting up of an integrated tech platform to improve outcomes under the Insolvency and Bankruptcy Code
The 2024 Union Budget aims to address various economic challenges while promoting growth across sectors. With its focus on infrastructure development, job creation, and social welfare, the government seeks to position India for continued economic progress in the coming years.
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