Budget 2024-25: A Comprehensive Overview
The Union Budget for 2024-25, unveiled by Finance Minister Nirmala Sitharaman, paints a picture of a nation striving for economic prosperity, with a strong emphasis on inclusive growth. It has outlined a vision for India’s economic growth, with a focus on employment, skilling, MSMEs, and the middle class. The budget aims to boost various sectors, including agriculture, infrastructure, and education, while also providing relief to individuals through tax reforms.
Key Highlights:
- Provision of ₹1.52 lakh crore for agriculture and allied sectors
- ₹2 lakh crore allocated for five schemes
- ₹15,000 crore financial support for the new Andhra Pradesh capital
- First-time employees to receive one month’s wage in three installments as registered in EPFO
- Up to ₹10 lakh support for students for domestic institution studies
- ₹26,000 crore for highways in Bihar
- ₹2.66 lakh crore for rural development and infrastructure
- Three crores more houses under PM Awas Yojana
- Credit guarantee scheme, collateral-free loan, and Mudra loan limit enhanced from ₹10 lakh to ₹20 lakh for MSME and labor-intensive manufacturing
- 12 industrial parks sanctioned
- ₹11.11 lakh crore for capital expenditure, around 3.4% of GDP
- ₹11,500 crores for the flood mitigation scheme for Bihar
- PM Urban Housing 2.0 provision of ₹10 lakh crs for the next 5 years
- ₹1 lakh crore for Research and Innovations
Tax Reforms:
New tax regime introduced with revised tax slabs:
- 0 to 3 lac – Nil Tax
- 3 to 7 lac – 5%
- 7 to 10 lac – 10%
- 10 to 12 lac – 15%
- 12 to 15 lac – 20%
- 15 lac & above – 30%
Other Highlights:
- Standard Deduction for salaried individuals increased from ₹50,000 to ₹75,000
- Long Term Capital Gain increased from 10% to 12.5%
- Short Term Capital Gain increased from 15% to 20%
- Angel Tax abolished
- Fiscal Management
- Fiscal Deficit projected at 4.9% of GDP
- Receipts seen at ₹32.07 lakh crore
- Expenditures seen at ₹48.21 lakh crore
- Gross market Borrowing target at ₹14.01 lakh crore
- Customs Duty Reforms
- Reduce Custom Duty on Gold and Silver to 6%
- Reduce custom duties on mobile, Charger, and PCBA
Sectoral Allocation:
- ₹4,54,773 crore for defense
- ₹2,65,808 crore for rural development
- ₹1,51,851 crore for agriculture and allied activities
- ₹1,50,983 crore for home affairs
- ₹1,25,638 crore for education
- ₹1,16,342 crore for IT and telecom
- ₹89,287 crore for health
- ₹68,769 crore for energy
Reactions on Budget:
Opposition parties on Tuesday criticised it as a Budget for “NDA allies in Bihar and Andhra Pradesh” that excluded other states. While the Congress called it a “save Modi government’ Budget,” the Trinamool Congress (TMC) labelled it “politically biased and anti-poor,” and the Samajwadi Party (SP) claimed that it overlooked the interests of the youth and farmers. Congress Member of Parliament (MP) Shashi Tharoor termed Budget 2024 an ‘underwhelming’ one, which has simply ‘not addressed’ key issues.
While IT minister Ashwini Vaishnaw says abolition of angel tax will boost startup ecosystem in country, ‘Increased emphasis on road connectivity projects, energy transition initiatives will enhance logistics efficiency,’ says Mahindra Logistics
