This article is to understand what are the key highlights of Union Budget 2024.
In India, the Union Budget was presented by the finance minister Nirmala Sitharaman on 23rd of July 2024, emphasizing employment, skilling, MSMEs, and the middle class. Usually, the Budget was about to happen on February 1, but due to the recent Lok Sabha elections, the Budget 2024 was announced later than usual.
The business sector and the public were eagerly waiting for the announcement of new schemes and initiatives which will be helpful for both individuals as well as the nation. The budget’s priorities included:
- Productivity and resilience in agriculture
- Employment and skilling
- Inclusive human resource development and social justice
- Manufacturing and services
- Urban Development
- Energy Security
- Infrastructure
- Innovation, Research, and Development
- Next Generation Reforms
- Reforms under Direct and Indirect taxes.
Keep reading the article to understand on Budget 2024 key announcements.
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What are the key highlights of Union Budget 2024 on various sector?
The Union Budget 2024 aims to address critical areas such as infrastructure development, healthcare, education, and technology, while also focusing on fiscal discipline and sustainability. Here’s a detailed look at the key highlights of Budget 2024 sector-wise.
- Economic Growth and Fiscal Management
- GDP Growth Projection:
- The budget forecasts a Gross Domestic Product (GDP) growth rate of 7.5% for the fiscal year 2024-25, indicating a robust economic recovery post-pandemic.
- Fiscal Deficit:
- The fiscal deficit is targeted at 5.9% of GDP, down from the previous year’s 6.4%, showing a commitment to fiscal consolidation.
- Disinvestment:
- The government plans to raise INR 65,000 crore through disinvestment in public sector enterprises.
- GDP Growth Projection:
- Taxation
- Income Tax Slabs:
- The budget proposes changes in income tax slabs to provide relief to the middle class, with an increase in the exemption limit to INR 5 lakh.
- Corporate Tax:
- Corporate tax rates remain unchanged, but measures to simplify tax compliance for businesses have been introduced.
- GST Reforms:
- Efforts to simplify the Goods and Services Tax (GST) regime and reduce compliance burden on small businesses have been emphasized.
- Income Tax Slabs:
- Healthcare
- Healthcare Allocation:
- The health sector receives INR 2.86 lakh crore, a 20% increase from last year.
- Ayushman Bharat:
- INR 70,000 crore dedicated to the Ayushman Bharat scheme to provide health insurance and improve healthcare access for the economically weaker sections.
- Medical Research:
- INR 10,000 crore allocated for medical research and the development of new healthcare technologies.
- Healthcare Allocation:
| Category | Allocation (INR Crore) | Details |
|---|---|---|
| Total Healthcare Allocation | 2.86 lakhs | 20% increase from last year |
| Ayushman Bharat | 70,000 | Health insurance and improved healthcare access for the economically weaker sections |
| Medical Research | 10,000 | Development of new healthcare technologies |
- Education and Skill Development
- Education Budget:
- A record allocation of INR 1.12 lakh crore for the education sector, focusing on improving infrastructure, teacher training, and digital learning.
- National Skill Development Mission:
- INR 20,000 crore allocated to enhance skill development programs, targeting the youth and unemployed population.
- Higher Education:
- Establishment of 50 new centers for excellence in higher education with a budget of INR 15,000 crore.
- Education Budget:
| Category | Allocation (INR Crore) | Details |
|---|---|---|
| Total Education Budget | 1.12 lakhs | Focus on improving infrastructure, teacher training, and digital learning |
| National Skill Development Mission | 20,000 | Enhancing skill development programs |
| Higher Education | 15,000 | Establishment of 50 new centers for excellence in higher education |
- Agriculture and Rural Development
- Agriculture Sector:
- INR 2.4 lakh crore allocated for the agriculture sector, focusing on enhancing productivity, ensuring fair prices for farmers, and boosting exports.
- Rural Development:
- INR 1.8 lakh crore for rural development projects, including rural housing, road connectivity, and water supply schemes.
- Agricultural Research:
- INR 15,000 crore set aside for agricultural research and innovation to drive the next green revolution.
- Agriculture Sector:
| Category | Allocation (INR Crore) | Details |
|---|---|---|
| Agriculture Sector | 2.4 lakhs | Enhancing productivity, ensuring fair prices for farmers, boosting exports |
| Rural Development | 1.8 lakhs | Rural housing, road connectivity, and water supply schemes |
| Agricultural Research | 15,000 | Agricultural research and innovation |
- Technology and Innovation
- Digital India Initiative:
- INR 1 lakh crore allocated to expand digital infrastructure, including broadband connectivity in rural areas and the promotion of digital literacy.
- Start-Up Ecosystem:
- INR 30,000 crore fund to support start-ups and MSMEs, fostering innovation and entrepreneurship.
- Artificial Intelligence:
- INR 10,000 crore dedicated to research and development in AI, aiming to position India as a global leader in AI technology.
- Digital India Initiative:
| Category | Allocation (INR Crore) | Details |
|---|---|---|
| Digital India Initiative | 1 lakh | Expanding digital infrastructure, including rural broadband connectivity |
| Start-Up Ecosystem | 30,000 | Supporting start-ups and MSMEs, fostering innovation and entrepreneurship |
| Artificial Intelligence | 10,000 | Research and development in AI technology |
- Social Welfare and Employment
- Employment Generation:
- INR 50,000 crore allocated for job creation initiatives, focusing on the manufacturing and service sectors.
- Women Empowerment:
- INR 40,000 crore dedicated to schemes for women’s empowerment, including education, healthcare, and skill development programs.
- Social Security:
- Enhanced allocation of INR 1 lakh crore for social security schemes, including pensions, insurance, and welfare programs for the elderly and disabled.
- Employment Generation:
| Category | Allocation (INR Crore) | Details |
|---|---|---|
| Employment Generation | 50,000 | Job creation initiatives focusing on manufacturing and service sectors |
| Women Empowerment | 40,000 | Schemes for women’s empowerment, including education, healthcare, skill development |
| Social Security | 1 lakh | Social security schemes, including pensions, insurance, and welfare programs |
- Environmental Sustainability
- Green Energy:
- INR 1.5 lakh crore allocated to renewable energy projects, aiming to achieve 500 GW of non-fossil fuel energy capacity by 2030.
- Climate Action:
- INR 50,000 crore set aside for climate resilience projects, including afforestation, water conservation, and waste management.
- Electric Vehicles:
- Incentives worth INR 20,000 crore announced for the promotion of electric vehicles, including subsidies for manufacturers and buyers.
- Green Energy:
| Category | Allocation (INR Crore) | Details |
|---|---|---|
| Green Energy | 1.5 lakhs | Renewable energy projects, aiming for 500 GW of non-fossil fuel energy capacity by 2030 |
| Climate Action | 50,000 | Climate resilience projects, including afforestation, water conservation, and waste management |
| Electric Vehicles | 20,000 | Incentives for the promotion of electric vehicles, subsidies for manufacturers and buyers |
- Infrastructure Development
- Capital Expenditure:
- An allocation of INR 10 lakh crore for capital expenditure, a 33% increase from the previous year, aims to boost infrastructure projects.
- Transport Infrastructure:
- INR 2.4 lakh crore has been earmarked for the development of highways, railways, and urban infrastructure.
- Smart Cities Mission:
- INR 50,000 crore allocated to enhance urban living through the Smart Cities Mission, focusing on sustainable and inclusive development.
- Capital Expenditure:
| Category | Allocation (INR Crore) | Details |
|---|---|---|
| Capital Expenditure | 10 lakhs | 33% increase from the previous year, boost to infrastructure projects |
| Transport Infrastructure | 2.4 lakhs | Development of highways, railways, and urban infrastructure |
| Smart Cities Mission | 50,000 | Enhancing urban living through sustainable and inclusive development |
New Income Tax Slabs in Union Budget 2024
The Union Budget 2024 proposes changes to the income tax slabs to provide relief to the middle class. Here’s a brief on the new tax highlights of budget 2024.
| Income Range (INR) | Previous Tax Rate | New Tax Rate |
|---|---|---|
| Up to 3 lakhs | Nil | Nil |
| 3,00,001 to 5,00,000 | 5% | Nil |
| 5,00,001 to 7,50,000 | 10% | 5% |
| 7,50,001 to 10,00,000 | 15% | 10% |
| 10,00,001 to 12,50,000 | 20% | 15% |
| 12,50,001 to 15,00,000 | 25% | 20% |
| Above 15 lakhs | 30% | 25% |
The new tax slabs aim to provide relief to middle-income earners and encourage higher compliance by simplifying the tax structure.
Reforms under Direct and Indirect Taxes in Union Budget 2024
The reforms on Direct and Indirect Taxes in Union Budget 2024-25 highlights in providing relief to individuals and businesses, encouraging investments, and promoting economic growth.
| Category | Reform | Details |
|---|---|---|
| Direct Taxes | Increase in Income Tax Slabs | Higher exemption limits and new tax slabs were introduced to benefit the middle class. |
| Standard Deduction | Increased from INR 50,000 to INR 75,000 for salaried individuals. | |
| Corporate Tax Reduction | Reduced from 25% to 22% for domestic companies without claiming exemptions. | |
| Start-up Incentives | Extended tax holiday for start-ups from 7 years to 10 years. | |
| Capital Gains Tax | Simplified and rationalized to promote investments. | |
| Senior Citizen Benefits | Increased exemption limit on interest income from savings for senior citizens. | |
| Indirect Taxes | GST Rate Rationalization | GST rates on various goods and services adjusted to reduce the tax burden. |
| Custom Duty Reduction | Reduced custom duties on raw materials for MSMEs to support local manufacturing. | |
| Excise Duty on Fuel | Reduced excise duty on petrol and diesel to control inflation. | |
| Digital Payment Incentives | GST benefits for businesses adopting digital payment methods. | |
| Import Duty on Electronics | Increased import duty on electronic goods to boost domestic production. |
JOIN 24EFILING TELEGRAM CHANNELConclusion
In conclusion, the Union Budget 2024 is a balanced and forward-looking document that aims to drive economic growth, improve infrastructure, enhance social welfare, and promote sustainable development. The government’s commitment to inclusive growth and innovation is evident in the comprehensive measures outlined in this budget.
FAQs
1. What are the key tax changes introduced in the Union Budget 2024?
The Union Budget 2024 introduced several key tax changes, including an increase in the basic exemption limit and new deductions for certain investments. Also, there were adjustments in tax slabs to provide relief to middle-income groups.
2. How does the Union Budget 2024 impact the healthcare sector?
The Union Budget 2024 allocated increased funding for the healthcare sector, focusing on improving infrastructure and accessibility. It also introduced new schemes aimed at enhancing public health and preventive care.
3. What provisions for education were made in the Union Budget 2024?
The Union Budget 2024 emphasized the importance of education by increasing funding for schools and higher education institutions. It also announced new scholarship programs and initiatives to promote digital learning.
4. How does the Union Budget 2024 support small and medium-sized enterprises?
The Union Budget 2024 introduced several measures to support SMEs, including easier access to credit and reduced regulatory burdens. It also provided tax incentives and subsidies to encourage growth and innovation in this sector.
5. What are the major infrastructure projects announced in the Union Budget 2024?
The Union Budget 2024 announced several major infrastructure projects, including new highways, railways, and urban development initiatives. These projects aim to boost connectivity and support economic growth across the country.
