Union Budget 2024 in Detail Analysis

Budget 2024 – Introduction

Finance Minister Nirmala Sitharaman presented the Union Budget 2024 in Parliament, detailing the government’s financial plans and priorities for the upcoming fiscal year. The budget focuses on economic growth, infrastructure development, social welfare, and sustainability. This article provides a comprehensive breakdown of the major announcements, offering insights into the budget’s key aspects.

The people of India have re-elected the government led by Prime Minister Narendra Modi for a historic third term. The Indian people are grateful for their support and trust in government policies. The Modi Government is committed to ensuring progress for all Indians, regardless of religion, caste, gender, or age.

As outlined in the interim budget, the Indian government focuses on four key groups: the poor, women, youth, and farmers. For farmers, the government has increased the Minimum Support Prices for all major crops, ensuring at least a 50% margin over costs. The Pradhan Mantri Garib Kalyan Anna Yojana was extended for five years, benefiting over 80 crore people.

This budget emphasizes employment, skilling, MSMEs, and the middle class. Introducing a Prime Minister’s package of five schemes to support employment and skilling for 4.1 crore youth over five years, with a central outlay of 2 lakh crore. Additionally, 1.48 lakh crore is allocated for education, employment, and skilling this year.

The government is dedicated to strong development and prosperity, presenting a detailed roadmap for ‘Viksit Bharat’.
Focusing on 9 priorities mentioned below, we will explore the Budget 2024 in detail:

Next-generation reforms
Agriculture productivity and resilience
Employment and skilling
Inclusive human resource development and social justice
Manufacturing and services
Urban development
Energy security
Infrastructure
Innovation, research, and development

Priority 1: Productivity and resilience in Agriculture

Transforming agriculture research

The Government will undertake a comprehensive review of the agriculture research setup to bring the focus on raising productivity and developing climate resilient varieties. The funding will also be provided.

Natural Farming

One Crore farmers will be initiated into natural farming supported by certification and branding in the next two years. Ten thousands of need-based bio-input resource centers will be established.

Missions for pulses and oilseeds

It is in plan to strengthen the production, storage and marketing of Pulses and oilseeds. To achieve ‘Atmanirbhar’ Bharat, the strategy is being put in place for oil seeds such as Mustard, Groundnut, Sesame, Soyabeen and Sunflower.

Vegetable production & Supply Chains

The government will develop large vegetable production clusters near major consumption centers and promote Farmer-Producer Organizations, cooperatives, and start-ups for collection, storage, and marketing in the vegetable supply chain.

Digital Public Infrastructure for Agriculture

Following the pilot project’s success, the Indian government and the states will implement Digital Public Infrastructure (DPI) in agriculture within 3 years. This year, a digital crop survey for Kharif will cover 400 districts, registering 6 crore farmers and their lands. Additionally, Jan Samarth-based Kisan Credit Cards will be issued in 5 states.

Shrimp Production & Export

The Indian Government will provide financial support for Nucleus Breeding Centres for shrimp broodstock. NABARD will facilitate financing for shrimp farming, processing, and export.

National Cooperation Policy

The Indian government will introduce a National Cooperation Policy to develop the cooperative sector, aiming to boost the rural economy and create large-scale employment. This year, 1.52 lakh crore has been allocated for agriculture and allied sectors.

Priority 2: Employment & Skilling

Employment Linked Incentive

Under Budget 2024, The Indian government will implement 3 schemes for ‘Employment Linked Incentive’ under the Prime Minister’s package. These schemes will be based on EPFO enrolment, recognizing first-time employees, and supporting both employees and employers.

Scheme A: First Timers: This scheme offers a one-month wage, up to INR 15,000, to new employees in formal sectors. The amount will be transferred in three installments to first-time EPFO-registered workers with a monthly salary up to INR 1 lakh. It aims to benefit 2.1 crore youth.

Scheme B: Job Creation in manufacturing: This scheme encourages hiring first-time employees in manufacturing by offering incentives to both employees and employers based on EPFO contributions for the first 4 years. It aims to benefit 30 Lakh new workers and their employers.

Scheme C: Support to employers: This scheme reimburses employers up to INR 3,000 per month for 2 years for each new employee with a salary up to INR 1 lakh. It aims to boost employment by 50 Lakh people across all sectors.

Participation of women in the workforce

The Government will boost women’s workforce participation by setting up working women hostels and creches, organizing women-specific skilling programs, and enhancing market access for women SHG enterprises.

Skilling and Loan program for Women: The Minister of Finance of India said, “I’m pleased to announce a new centrally sponsored scheme as the 4th under the Prime Minister’s package. Over 5 years, it will skill 20 lakh youth by upgrading 1,000 Industrial Training Institutes with industry-aligned courses and introducing new ones. The revised Model Skill Loan Scheme will provide loans up to INR 7.5 lakh with a government guarantee, benefiting 25,000 students annually.”

Education Loans: Introducing financial support for higher education loans up to INR 10 lakh for domestic institutions. E-vouchers will be provided to 1 lakh students annually, offering a 3% interest subvention on their loans.

Human Resource Development

Under Budget 2024, The government is dedicated to comprehensive development for all, focusing on farmers, youth, women, and the poor. The saturation approach to ensure everyone benefits from education and health programs, empowering them by enhancing their capabilities will be used.

The government will enhance the implementation of schemes supporting economic activities for craftsmen, artisans, self-help groups, SC/ST and women entrepreneurs, and street vendors, including PM Vishwakarma, PM SVANidhi, National Livelihood Missions, and Stand-Up India.

Additionally, The government will launch Purvodaya, a plan for the comprehensive development of Eastern India (Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh) focusing on human resource development, infrastructure, and economic opportunities to drive the region’s growth.

An industrial node at Gaya on the Amritsar-Kolkata Industrial Corridor will be developed to boost industrial growth in the eastern region. This node will serve as a model for transforming ancient cultural centers into modern economic hubs, exemplifying “Vikas bhi Virasat bhi” in our development strategy.

Rupees 26,000 crore in road projects including the Patna-Purnea Expressway, Buxar-Bhagalpur Expressway, spurs to Bodhgaya, Rajgir, Vaishali, and Darbhanga, and a new 2-lane bridge over the Ganga at Buxar. Additionally, 21,400 crore rupees will be allocated for power projects, including a new 2400 MW plant at Pirpainti. New airports, medical colleges, and sports infrastructure will also be developed in Bihar.

Additional funding for capital investments will be allocated, and the Bihar Government’s requests for external assistance from multilateral development banks will be expedited.

Andhra Pradesh Reorganization Act

To fulfill commitments from the Andhra Pradesh Reorganization Act, the special financial support through multilateral development agencies will be provided Under Budget 2024. This year, INR 15,000 crore will be allocated, with additional funds in future years to support the state’s capital needs.

To promote industrial development under the Act, funds will be allocated for essential infrastructure—water, power, railways, and roads—in the Kopparthy node (Vishakhapatnam-Chennai Corridor) and the Orvakal node (Hyderabad-Bengaluru Corridor). Additional capital investment will be provided this year to support economic growth.

Bank branches in North-Eastern Region

100 branches of India Post Payment Bank will be established in the North East to expand banking services. Additionally, INR 2.66 lakh crore is allocated this year for rural development and infrastructure.

Priority 4: Manufacturing & Services (MSME, Mudra)

Support for promotion of MSMEs

This budget 2024 focuses on MSMEs and labor-intensive manufacturing with a package that includes financing, regulatory changes, and technology support. These measures aim to help MSMEs grow and compete globally, as outlined in the interim budget.

A new credit guarantee scheme will be introduced to facilitate term loans for MSMEs to purchase machinery and equipment without collateral or third-party guarantees. This scheme will pool credit risks and feature a self-financing guarantee fund providing coverage up to INR 100 crore per applicant, with the loan amount potentially exceeding this. Borrowers will need to pay an upfront guarantee fee and an annual fee on the reducing loan balance.

Public sector banks will enhance their in-house capability to assess MSMEs for credit, moving away from external assessments. They will develop a new credit assessment model using digital footprints, improving on traditional methods based solely on assets or turnover, and including MSMEs without formal accounting systems.

A new mechanism to support MSMEs during stress periods. For those in the ‘special mention account’ (SMA) stage, a government-backed guarantee fund will ensure continued access to credit, helping them avoid transitioning to the NPA stage and sustain their business.

The Mudra loan limit will increase to INR 20 lakh from INR 10 lakh for entrepreneurs who have successfully repaid previous loans under the ‘Tarun’ category.

Enhanced scope for mandatory onboarding in TReDS

To help MSMEs unlock working capital by converting trade receivables into cash, the government propose lowering the buyer turnover threshold for mandatory onboarding on the TReDS platform from INR 500 crore to INR 250 crore. This change will add 22 more CPSEs and 7,000 companies to the platform, including medium enterprises as suppliers.

SIDBI branches in MSME clusters

SIDBI will open new branches to serve major MSME clusters, aiming to provide direct credit. This year, 24 new branches will expand coverage to 168 out of 242 key clusters within 3 years.

MSME Units for Food Irradiation, Quality & Safety Testing

Financial support will be provided for establishing 50 multi-product food irradiation units in the MSME sector. Additionally, 100 food quality and safety testing labs with NABL accreditation will be set up.

E-Commerce Export Hubs

E-Commerce Export Hubs will be established through public-private partnerships to help MSMEs and traditional artisans access international markets. These hubs will offer trade and export services under a streamlined regulatory and logistical framework.

Measures for promotion of Manufacturing & Services

As the 5th scheme under the Prime Minister’s package, the government will launch a program offering internships at 500 top companies for 1 crore youth over 5 years. Interns will receive a INR 5,000 monthly allowance and a one-time INR 6,000 assistance. Companies will cover training costs and 10% of internship costs through their CSR funds.

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Priority 5: Urban Development

Cities as Growth Hubs

The government will work with states to develop ‘Cities as Growth Hubs’ through economic and transit planning, and orderly development of peri-urban areas using town planning schemes.

Creative redevelopment of cities

The framework to support the creative brownfield redevelopment of existing cities, focusing on transformative policies, market mechanisms, and regulations will be created.

Transit Oriented Development

Transit Oriented Development plans will be developed for 14 large cities with populations over 30 lakh, including strategies for implementation and financing.

Urban Housing

Under PM Awas Yojana Urban 2.0, INR 10 lakh crore will be invested to address the housing needs of 1 crore urban poor and middle-class families, including INR 2.2 lakh crore in central assistance over the next 5 years. The plan includes interest subsidies for affordable loans and will also establish policies and regulations for efficient, transparent rental housing markets.

Water Supply and Sanitation

Partnership with State Governments and Multilateral Development Banks to promote water supply, sewage treatment, and solid waste management projects in 100 large cities. These bankable projects will include using treated water for irrigation and replenishing local tanks.

Street Markets

Building on the success of the PM SVANidhi Scheme, our Government plans to develop 100 weekly ‘haats’ or street food hubs in select cities each year over the next five years.

Stamp Duty

Encourage states to reduce high stamp duty rates and consider further lowering them for properties purchased by women. This reform will be integrated into urban development schemes.

Priority 6: Energy Security

Energy Transition

In the interim budget 2024, the government announced our strategy for sustained, resource-efficient economic growth and energy security. the government will release a policy document outlining energy transition pathways that balance employment, growth, and environmental sustainability.

PM Surya Ghar Muft Bijli Yojana

In line with the interim budget announcement, the PM Surya Ghar Muft Bijli Yojana has been launched to provide free electricity up to 300 units per month for 1 crore households through rooftop solar plants. The scheme has received over 1.28 crore registrations and 14 lakh applications, and the government will continue to promote it.

Pumped Storage Policy

In budget 2024, A policy to promote pumped storage projects for electricity storage, helping to integrate the growing share of variable and intermittent renewable energy into the overall energy mix will be introduced.

Research and development of small and modular nuclear reactors

Nuclear energy will play a key role in the energy mix for Viksit Bharat. Our government will collaborate with the private sector on setting up Bharat Small Reactors, developing Bharat Small Modular Reactors, and advancing new nuclear technologies. R&D funding announced in the interim budget will support these initiatives.

Advanced Ultra Super Critical Thermal Power Plants

The development of indigenous technology for Advanced Ultra Super Critical (AUSC) thermal power plants has been completed. NTPC and BHEL will establish a full-scale 800 MW commercial plant using AUSC technology, with the government providing fiscal support. Additionally, developing indigenous capacity for high-grade steel and advanced metallurgy materials for these plants will offer significant economic benefits.

Roadmap for ‘hard to abate’ industries

The Budget 2024 also focuses on a roadmap to shift ‘hard to abate’ industries from ‘energy efficiency’ targets to ‘emission targets’. This will include regulations for transitioning these industries from the ‘Perform, Achieve and Trade’ system to the ‘Indian Carbon Market’ framework.

Support to traditional micro and small industries

Investment-grade energy audits for traditional micro and small industries in 60 clusters, such as brass and ceramics will be facilitated. Financial support will be given to transition to cleaner energy and implement energy efficiency measures. The scheme will be expanded to 100 more clusters in the next phase.

Priority 7: Infrastructure in Budget 2024

Infrastructure investment by Central Government

The Central Government’s substantial infrastructure investments have greatly boosted the economy. The government will continue strong fiscal support for infrastructure over the next 5 years while addressing other priorities and maintaining fiscal consolidation. This year, 11,11,111 crore Rupees are allocated for capital expenditure, which is 3.4% of India’s GDP.

Infrastructure investment by state governments

The Government will encourage states in this budget 2024 to match this scale of support for infrastructure based on their development priorities. This year, 1.5 lakh crore rupees have been allocated for long-term interest-free loans to assist states in their resource allocation.

Private investment in infrastructure

Private sector investment in infrastructure will be encouraged through viability gap funding and supportive policies. A market-based financing framework will be introduced.

Pradhan Mantri Gram Sadak Yojana (PMGSY)

In Budget 2024, Phase IV of PMGSY will be launched to provide all-weather connectivity to 25,000 rural habitations that have become eligible due to population growth.

Irrigation and Flood Mitigation

Bihar, often affected by floods, will receive financial support for flood control and irrigation projects through the Accelerated Irrigation Benefit Program and other sources. This includes INR 11,500 crore for the Kosi-Mechi intra-state link and 20 other schemes such as barrages, river pollution control, and irrigation projects. Additionally, surveys and investigations for Kosi-related flood mitigation will be conducted.

Assam, facing annual floods from the Brahmaputra River and its tributaries, will receive assistance for flood management and related projects. Himachal Pradesh, Uttarakhand, and Sikkim, which faced severe losses from floods, cloud bursts, and landslides, will receive reconstruction and rehabilitation assistance through multilateral development support.

Tourism

Tourism, a key part of our civilization, will help position India as a global tourist destination, creating jobs, stimulating investments, and unlocking opportunities for other sectors.

In addition to the interim budget measures, the finance minister proposed the following new initiatives.
the comprehensive development of the Vishnupad Temple Corridor and Mahabodhi Temple Corridor in Bihar, modeled on the Kashi Vishwanath Temple Corridor. This will transform these sites into world-class pilgrim and tourist destinations.

Rajgir, with its religious significance for Hindus, Buddhists, and Jains, including the ancient Munisuvrata temple and the sacred Saptharishi hot springs, will undergo a comprehensive development initiative.

The government will support the development of Nalanda as a tourist destination and work to restore Nalanda University to its former glory.

Odisha’s scenic beauty, temples, monuments, craftsmanship, wildlife sanctuaries, natural landscapes, and pristine beaches make it an ideal tourism destination. Our government will provide assistance for their development.

Priority 8: Innovation, Research & Development

National Research

The government will operationalize the Anusandhan National Research Fund for basic research and prototype development. Additionally, the government will establish a mechanism to promote private sector-driven research and innovation at a commercial scale, supported by a INR 1 lakh crore financing pool, as announced in the interim budget.

Space Economy

To expand the space economy fivefold over the next 10 years, a venture capital fund of INR 1,000 crore is established.

Priority 9: Next Generation Reforms

Economic Policy Framework

An Economic Policy Framework to guide economic development and set the stage for next-generation reforms aimed at creating employment and sustaining high growth will be developed. The reforms will focus on improving productivity across land, labor, capital, and technology, and addressing inequality. Effective implementation will require collaboration between the Centre and states. To promote competitive federalism and incentivize faster reform implementation, a significant portion of the 50-year interest-free loan will be allocated. To initiate these reforms, Indian government will work with states.

Land-related reforms will address both rural and urban areas, focusing on land administration, planning, and management, as well as urban planning, usage, and building bylaws. These reforms will be incentivized for completion within the next 3 years through appropriate fiscal support.

Rural land-related actions will include: (1) assigning Unique Land Parcel Identification Numbers (ULPIN) or Bhu-Aadhaar for all lands, (2) digitizing cadastral maps, (3) surveying map sub-divisions according to current ownership, (4) establishing a land registry, and (5) linking to the farmers registry. These measures will also support credit flow and other agricultural services.

Urban land records will be digitized with GIS mapping. An IT-based system for property record administration, updating, and tax administration will be established, enhancing the financial position of urban local bodies.

Services to Labour

The Indian government will enhance services for labor, including employment and skilling, by integrating the e-Shram portal with other platforms for a one-stop solution. This will involve creating open databases for labor market trends, skill requirements, and job roles, as well as mechanisms to connect job seekers with employers and skill providers.

Shram Suvidha & Samadhan Portal

The Shram Suvidha and Samadhan portals will be revamped to improve ease of compliance for industry and trade.

Financial sector vision and strategy

To address the financing needs of the economy, the government will introduce a financial sector vision and strategy document. This will outline the agenda for the next 5 years, focusing on expanding size, capacity, and skills, and guiding the work of the government, regulators, financial institutions, and market participants.

Taxonomy for climate finance

The Government will develop a taxonomy for climate finance to improve capital availability for climate adaptation and mitigation, supporting the country’s climate commitments and green transition.

Variable Capital Company structure

The Government will seek legislative approval to provide a flexible financing mode for leasing aircraft and ships, and to establish pooled funds for private equity through a ‘variable company structure.’

Foreign Direct Investment and Overseas Investment

The rules and regulations for Foreign Direct Investment (FDI) and overseas investments to: (1) facilitate foreign investments, (2) encourage prioritization, and (3) promote the use of the Indian Rupee for overseas investments will be simplified.

NPS Vatsalya

The NPS-Vatsalya plan will allow parents and guardians to contribute for minors. Upon reaching adulthood, the plan can be seamlessly converted into a regular NPS account.

Use of Technology

Over the past 10 years, technology has enhanced productivity and reduced inequality. Public investment in digital infrastructure and private sector innovations have improved access to market resources, education, health, and services. the government will further advance technology adoption to drive digitalization in the economy.

Ease of Doing Business

To enhance the ‘Ease of Doing Business,’ Government is advancing the Jan Vishwas Bill 2.0. Additionally, states will be incentivized to implement their Business Reforms Action Plans and digitalization efforts.

Data and Statistics

To enhance data governance, the Government will leverage sectoral databases, including those from the Digital India mission, and actively use technology tools for data collection, processing, and management.

New Pension Scheme (NPS)

The Committee reviewing the NPS has made significant progress. The constructive approach of the Staff Side of the National Council of the Joint Consultative Machinery for Central Government Employees is being appreciated. A solution will be developed to address key issues while ensuring fiscal prudence to protect common citizens.

Budget Estimates 2024-25

For the year 2024-25, total receipts (excluding borrowings) are estimated at INR 32.07 lakh crore, and total expenditure at INR 48.21 lakh crore. Net tax receipts are projected to be INR 25.83 lakh crore, with a fiscal deficit estimated at 4.9% of GDP.

For 2024-25, gross and net market borrowings through dated securities are estimated at INR 14.01 lakh crore and INR 11.63 lakh crore, respectively, both lower than in 2023-24. the government aim to reduce the fiscal deficit below 4.5% next year and remain committed to this path. From 2026-27, the government will focus on ensuring that Central Government debt declines as a percentage of GDP each year.

Indirect Taxes

Customs Duty and Taxation Updates:

GST: It has reduced tax burden on consumers, simplified compliance, and increased government revenues. the government will further simplify and expand GST.
Customs Duty Review: A comprehensive review of customs duty rates will be undertaken to simplify trade, remove duty inversion, and reduce disputes.
Medicines and Medical Equipment:
- Full customs duty exemption for three additional cancer medicines.
- Adjustments to BCD on x-ray tubes and flat panel detectors to align with domestic capacity.
Mobile Phones and Related Parts:
- Reduction of BCD on mobile phones, PCBA, and chargers to 15% due to growth in domestic production and exports.
Critical Minerals:
- Full exemption of customs duties on 25 critical minerals and reduction of BCD on two others to support processing and refining.
Solar Energy:
- Expansion of customs duty exemptions for solar cell and panel manufacturing. Non-extension of exemptions for solar glass and tinned copper.
Marine Products:
- Reduction of BCD to 5% on certain seafood and feed inputs to boost competitiveness.
Leather and Textiles:
- Reduction of BCD on real down filling material and addition to exempted goods list for leather and textile exports. Duty reduction on MDI for spandex yarn from 7.5% to 5%.
Precious Metals:
- Reduction of customs duties on gold and silver to 6%, and platinum to 6.4% to enhance domestic value addition.
Other Metals:
- Removal of BCD on ferro nickel and blister copper, continuation of nil BCD on ferrous scrap and nickel cathode, and concessional BCD of 2.5% on copper scrap.
Electronics:
- Removal of BCD on oxygen-free copper for resistors and exemption of parts for connectors.
Chemicals and Petrochemicals:
- Increase BCD on ammonium nitrate from 7.5% to 10% to support existing and new capacities.
Plastics:
- Increase BCD on PVC flex banners from 10% to 25% to curb harmful imports.
Telecommunication Equipment:
- Increase BCD from 10% to 15% on PCBA for specified telecom equipment.
Trade Facilitation:
- Extend the export period for imported goods for repairs to one year and re-import period for repairs under warranty to five years.

Direct Taxes

Tax Simplification and Review

Ongoing Efforts: The government will continue simplifying taxes, enhancing taxpayer services, reducing litigation, and boosting revenue for development and welfare.
Tax Regimes: Recent measures, including simplified tax regimes without exemptions, have been well-received. In FY 2022-23, 58% of corporate tax came from this regime, and over two-thirds of personal income tax filers have opted for the new regime.
Income Tax Act Review: A comprehensive review of the Income-tax Act, 1961 will make it more concise and clear, aiming to reduce disputes and litigation. The review will be completed in six months.
Tax Simplification Initiatives:
- Charities and TDS: Merging tax exemption regimes for charities, adjusting TDS rates, and simplifying TDS defaults.
- Reassessment: Simplifying provisions for reopening assessments, with stricter time limits.
- Capital Gains: Short-term gains will be taxed at 20%, long-term gains at 12.5%, with higher exemptions for lower and middle-income groups.
Taxpayer Services: All major GST and most Income Tax services are digitalized. Remaining services will be digitalized within two years.
Litigation and Appeals: Efforts will continue to reduce appeal backlogs and increase monetary limits for direct tax appeals.
Employment and Investment:
- Start-ups: Angel tax for investors will be abolished.
- Cruise Tourism: Simplified tax regime for foreign cruise operators.
- Diamond Industry: Safe harbour rates for foreign mining companies selling diamonds in India.
- Foreign Investment: Corporate tax rate for foreign companies will be reduced from 40% to 35%.
Deepening the Tax Base:
- Security Transactions Tax: Increased rates for futures and options.
- Buybacks: Income from share buybacks will be taxed in the recipient’s hands.
Social Security Benefits: Employer contributions to NPS will increase from 10% to 14% of salary. Employees will also receive deductions up to 14% for NPS contributions.
Personal Income Tax:
- New Tax Regime: Standard deduction for salaried employees will rise to INR 75,000, and the deduction for family pensions will increase to INR 25,000.

Budget 2024-2025 Highlights

Introduction The Indian government, under Prime Minister Narendra Modi’s leadership, has been re-elected for a historic third term. The government aims to ensure substantial progress for all Indians.

Global Context Despite global uncertainties, India’s economy is performing well, with low and stable inflation moving towards a 4% target.

Interim Budget Focus areas include the poor, women, youth, and farmers. Key initiatives include higher Minimum Support Prices for crops and the extension of the Pradhan Mantri Garib Kalyan Anna Yojana.

Budget Theme The focus is on employment, skilling, MSMEs, and the middle class, with a special package of 2 lakh crore for 4.1 crore youth over five years. A provision of 1.48 lakh crore has been made for education, employment, and skilling.

Budget Priorities

Agriculture: Productivity and resilience through comprehensive research and the release of new high-yielding crop varieties. Initiatives for natural farming and self-sufficiency in pulses and oilseeds.
Employment & Skilling: Various schemes and initiatives to facilitate employment and skilling opportunities.
Inclusive Human Resource Development and Social Justice: Enhanced focus on social justice and human resource development.
Manufacturing & Services: Support for manufacturing and services sectors.
Urban Development: Urban development schemes including reforms in property registration rates.
Energy Security: Policies for energy transition, including the PM Surya Ghar Muft Bijli Yojana and promotion of pumped storage projects.
Infrastructure: Continued investment in infrastructure development.
Innovation, Research & Development: Emphasis on innovation and R&D.
Next Generation Reforms: Introduction of new reforms to drive economic growth.

Budget Estimates 2024-25

Total receipts (excluding borrowings): 32.07 lakh crore
Total expenditure: 48.21 lakh crore
Net tax receipts: 25.83 lakh crore
Fiscal deficit: 4.9% of GDP
Market borrowings: Gross 14.01 lakh crore, Net 11.63 lakh crore

Indirect Taxes

GST has reduced tax incidence and compliance burden, and increased government revenues.
Proposals to further simplify and expand GST, and to review and rationalize customs duty rates.

Direct Taxes

Steps to ensure supplies of perishable goods reach the market adequately.

Other Initiatives

Financial sector vision and strategy to prepare for future needs.
Development of a taxonomy for climate finance.
Simplification of rules for Foreign Direct Investment and Overseas Investments.
NPS-Vatsalya plan for minors.
Increased adoption of technology and digitalization of the economy.
Efforts to improve ease of doing business through the Jan Vishwas Bill 2.0 and digitalization incentives for states.
Enhanced data governance and management.

Tax Reforms and Reliefs

Personal Income Tax

The budget introduces significant changes in personal income tax slabs to provide relief to middle-class taxpayers. The new tax regime offers increased exemptions and deductions, simplifying the tax structure. The Income Tax slabs for the new tax regime are as follows:

Income	Tax
0 – 3,00,000	Nil
3,00,000 – 7,00,000	5%
7,00,000 – 10,00,000	10%
10,00,000 – 12,00,000	15%
12,00,000 – 15,00,000	20%
Above 15,00,000	30%

As a result of these changes, a salaried employee in the new tax regime stands to save up to INR 17,500/- in income tax.

Corporate Tax

To encourage investment and boost corporate profitability, the budget reduces the corporate tax rate for new manufacturing companies to 35%. This move is expected to attract foreign investments and promote domestic manufacturing.

Conclusion

The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, outlines a comprehensive roadmap for India’s economic growth and development. With a focus on infrastructure, social welfare, sustainability, and innovation, the budget aims to address the immediate needs of the country while laying the foundation for long-term prosperity. The various allocations and reforms reflect the government’s commitment to inclusive growth, fiscal discipline, and building a resilient economy.

This detailed explanation of the major announcements in the Union Budget 2024 provides a clear understanding of the government’s financial plans and priorities for the upcoming fiscal year. By addressing key sectors and introducing new initiatives, the budget aims to drive economic recovery and enhance the quality of life for all citizens.

Source: Indiabudget.gov.in