The Union Budget 2024-2025 of India, presented by the finance minister Nirmala Sitharaman, emphasizes key priorities aimed at fostering employment, enhancing agriculture productivity, and supporting various sectors of the economy. In addition, taxes will fall for start-up investors and foreign companies. Below is a concise summary of the new measures.
Economic Overview
- Inflation: Maintained at low and stable levels, currently targeting around 4%.
- Focus Areas: The budget addresses four main groups: the poor (Garib), women (Mahilayen), youth (Yuva), and farmers (Annadata).
Key Initiatives
- Employment and Skills Development:
- A ₹2 lakh crore (US$26 billion) package aimed at creating job opportunities for 4.1 crore youth over five years.
- Upgrade of 1,000 Industrial Training Institutes (ITIs).
- Introduction of a comprehensive scheme to provide internships in 500 leading companies.
- Agriculture and Rural Development:
- Allocation of ₹1.52 lakh crore for agriculture and allied sectors.
- Release of 109 high-yielding and climate-resilient crop varieties.
- Initiation of 1 crore (10 million) farmers into natural farming over the next two years.
- Provision of ₹2.66 lakh crore for rural infrastructure development.
- Women Empowerment:
- Allocation of over ₹3 lakh crore for schemes benefiting women and girls.
- Initiatives to enhance women’s participation in the workforce.
- MSMEs and Middle-Class Support:
- Increase in Mudra loan limits from ₹10 lakh to ₹20 lakh.
- Significant relief in income tax for 40 million salaried individuals & pensioners with a revised standard deduction.
- Tax Reforms:
- Simplification of tax regimes and increased tax slabs for income tax.
- Abolition of the angel tax for investors and reduction of corporate tax for foreign companies from 40% to 35%.
- Modifications in capital gains tax exemptions, benefiting lower and middle-income classes.
- Infrastructure Development:
- ₹11.11 lakh crore allocated for capital expenditure; focused on maintaining strong fiscal support for infrastructure.
- Launch of PMGSY Phase IV for all-weather connectivity to 25,000 rural habitations.
- Innovation and Research:
- Establishment of the Anusandhan National Research Fund, aimed at enhancing private sector-driven research.
- Establishment of the Anusandhan National Research Fund, aimed at enhancing private sector-driven research.
- Next Generation Reforms:
- Formulation of an Economic Policy Framework to streamline employment opportunities and economic development.
- Formulation of an Economic Policy Framework to streamline employment opportunities and economic development.
- Custom Duty Adjustments:
- Reduction in custom duties for precious metals, mobile phones, and other electronic items to stimulate domestic manufacturing.
Budget Estimates
- Total Expenditure: Estimated at ₹48.21 lakh crore with net tax receipts at ₹25.83 lakh crore.
- Fiscal Deficit: Estimated at 4.9% of GDP, with plans to ensure a deficit below 4.5% next year.
The budget reflects a sustained commitment to economic growth and inclusive development through targeted subsidies, taxation reforms, and investments in key sectors, thereby aiming to create a ‘Viksit Bharat’ (Developed India).
Photo Credit: © Pixxelstudio91 | Dreamstime.com