Finance Minister Nirmala Sitharaman have started presenting the Union Budget for 2024–25 today, June 23, 2024. According to Sitharaman, this year's Union Budget is focused on Gareeb, women, youth, and farmers of the country. FM Sitharaman declared intentions to increase expenditure, generate employment, and help the middle class.
Union Budget 2024: Official PDF (Click Here)
Union Budget 2024: Key Highlights for UPSC (Click Here)
The Lok Sabha and Rajya Sabha are expected to hold 20-hour discussions on the budget, while the Lower House is anticipated to hold separate debates on the ministries of railways, education, health, MSME, and food processing, according to sources.
On July 22, Sitharaman presented the Economic Survey 2023–24, with a focus on investment, skill development, and employment.
Union Budget 2024 Key Highlights
FM Nirmala Sitharaman will be presenting the budget in the parliament very soon. She has already posed for the media with the tablet encased in a red sleeve.
Things that Became Cheap
Finance Minister Nirmala Sitharaman announced a significant reduction in customs duty on various items thus making several goods cheaper and more affordable for middle class. Here's a list of products that will become cheap in the coming days:
- Cancer medicines (three specific medicines fully exempt from customs duty)
- Mobile phones and related parts
- Imported gold
- Imported silver
- Leather goods
- Seafood
Savings from New Tax Regime
The New Tax Regime's Standard Deduction has been increased from Rs 30,000 to Rs 75,000. This will save Rs 17,500.
Announcement for Start-ups
On promoting #Investment, #Employment & #SocialSecurity, Union Budget 2024-25 proposes:
— Ministry of Finance (@FinMinIndia) July 23, 2024
👉 Angel tax for all classes of investors to be abolished, to bolster Indian start-up eco-system
👉 Corporate tax rate on foreign companies to be reduced from 40% to 35%
👉 Simpler tax… pic.twitter.com/MxHEQ6cBQU
- TDS on online purchases is reduced from 1% to 0.1 percent.
- Capital gains over the short term will be 20%. LTCG for certain assets will be 12.5%
- Unlisted bonds and debentures are subject to capital gains tax.
- Elimination of the angel tax for all investor classes.
Good News for Tax-payers: Tax Slab Changed
The Modi Government finally decided to give some relief to the tax-payers of the country. Finance Minister has introduced new tax regime which includes:
Income Range | Tax Rate |
---|---|
Up to Rs 3 lakh | No tax |
Rs 3 lakh - Rs 7 lakh | 5 percent |
Rs 7 lakh - Rs 10 lakh | 10 percent |
Rs 10 lakh - Rs 12 lakh | 15 percent |
Above Rs 15 lakh | 30 percent |
Mudra Loan Limit Increased
The Modi government has decided to increase the limit for taking Mudra Loan from ₹10 lakh to ₹20 lakh. The increased loan amount will only be available to those individuals who have taken out the loan under TARUN category and has already repaid it.
Mobile Phone and Charger To Become Cheap
FM Nirmala Sitharaman has announced the decrease of custom duty by 15% on mobile phone and its charger. This will lessen the cost of these electronic items.
Big Announcement for Organic Farmers
One crore farmers would be introduced to organic farming over the course of the next two years with the help of branding and certification. The government has also announced the release of 109 varieties of 32 different crops.
₹1.48 Lakh Crore for Education Sector
FM Nirmala Sitharaman announces the allotment of ₹1.48 lakh crore for the education and employment sector of the nation. The amount is also to be spent on the skill development of the youth.
Prof. Vidya Mahambare, Union Bank Chair Professor of Economics and Director, Great Lakes Institute of Management, Chennai reacted to this announcement saying, "The budget focuses on providing financial support for higher education through student loans and e-vouchers. There is a welcome emphasis on aligning skill development with industry requirements via upgrading industrial training institutes. This is crucial for addressing the skills gap and enhancing employability. While these initiatives are significant, the budget lacks specific measures addressing the supply side of the education sector, such as skill-upgradation of teachers and addressing the teacher shortage. Even in the era of online education, face-to-face instruction will continue to be the primary mode of education for most children. The budget also does not mention the progress made by the National Education Policy regarding its implementation via collaboration with the state governments. To transform India's education landscape, a more holistic approach with a balanced focus on demand and supply is necessary."
Government to Skill More Than 4 Cr Youth
Finanace Minister announces 5 new schemes worth more than ₹2 lakh crore. The main focus of these schemes are to be on skilling 4.1 crore youth, making them job-ready.
What is a Union Budget?
As per the Indian Constitution's Article 112, the Union Budget, also known as the annual financial statement, presents the government's expected receipts and expenditures for the specific year.
The Union Budget records the government's finances for the fiscal year that begins on April 1 and ends on March 31. Revenue Budget and Capital Budget are two categories of the Union Budget.
Union Budget 2024: Expectations
There are many expectations shouldered on the Modi 3.0’s first budget.
Income Tax Relief
Taxpayers are eagerly waiting for major tax reliefs from the first Budget of the newly elected NDA government. They hope for changes like increasing the standard deduction limit or readjusting the income tax brackets.
Taxpayers want the 2024 Budget to include measures that will reduce their financial burden.
Rural Infrastructure Development
It is anticipated that policies supporting agriculture and rural communities will be promoted in this Union Budget. This could involve boosting funding for agricultural projects and rural infrastructure.
This will boost the rural economy and encourage balanced growth between urban and rural areas.
Maintaining Fiscal Deficit
The NDA government aims to maintain the fiscal deficit target for FY25 at 5.1% of GDP, consistent with the goal set in Modi 2.0’s last interim budget. Moreover, a plan for reducing the fiscal deficit beyond FY26 may also be outlined in this Union Budget.
Job Creation Policies
The focus will also be on creating jobs through capital spending and targeted social programs, in line with the 'Viksit Bharat' initiative. Additionally, a plan for reducing the fiscal deficit beyond FY26 may be outlined.
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