How Will Budget 2024 Impact The Aam Aadmi? Interpreting Middle-Class Worries

India's welfare policies and infrastructure development are greatly influenced by the 2% of the country's population that pays taxes.

The Budget holds a special place in the common man's life as it decides whether he will be

Source : ABPLIVE AI

Union Budget 2024: Every year, when the day of the budget comes near, the middle class, or tax-paying citizens of India, fix their eyes on the government. The segment that pays income tax on earnings and GST on spending is often overlooked. This 2% of India's population has a significant impact on the country's welfare policies and infrastructure development.

What comes to mind, though, when you consider your fundamental expectations? Yes, jobs, taxes, housing, and loans. Finance Minister Nirmala Sitharaman addressed these urgent issues in the 2024-25 budget. The four major sections that she highlighted were youth, women, farmers, and the poor. They all belong to the middle class, which is one large umbrella group. The budget was primarily concerned with employment and skill development.

Biggest Worry Of Middle-Class  

To encourage entrepreneurship and lessen the burden of compliance, the government has made a number of changes:

• All assets will have long-term gains subject to a 12.5% tax rate.
• The tax rate on short-term gains on financial assets is now 20%.
• It is now possible to exempt capital gains on financial assets up to Rs 1.25 lakh annually.
• The angel tax is eliminated for all categories of investors.

New Income Tax Slabs

The following are the new income tax slabs that Budget 2024 proposes:

• Up to Rs 3 lakh: Nil
• Rs 300,001 to Rs 7 lakh: 5%
• Rs 700,001 to Rs 10 lakh: 10%
• Rs 100,001 to Rs 12 lakh: 15%
• Rs 120,001 to Rs 15 lakh: 20%
• Above Rs 15 lakh: 30%
• Furthermore, under the new regime, the standard deduction has increased from Rs 50,000 to Rs 75,000, and the deduction on pensioners' family pensions has increased from Rs 15,000 to Rs 25,000.

Budget 2024: Cheaper And Pocket-Friendly

• Clothes and shoes
• X-ray equipment
• Electric cars and lithium batteries
• Copper and leather goods
• Solar sets
• Mobile phones, parts, batteries, and chargers
• 25 essential minerals
• Cancer medicines
• Gold, silver, and platinum jewellery
• Fish and fish products

Budget 2024: Costlier And Expensive

• Specific telecom equipment
• Plastic goods

Budget 2024: Job Market And Job-Seekers

To meet the demands of an expanding workforce, the Indian economy must create almost 7.85 million jobs annually until 2030. This is how the Budget intends to deal with it: 

• 210,000 youth are anticipated to benefit from a one-month wage offered in three instalments to new hires in all formal sectors, up to a maximum of Rs 15,000.
• Incentives for employers and new hires to contribute to the EPFO for the first four years are anticipated to help three million young people.
• Up to Rs 3,000 in monthly employer EPFO reimbursement from the government for the first two years of employment for all new hires is anticipated to create 5 million jobs.
• Encouragement of women's employment through crèches and hostels.
• Up to Rs 7.5 lakh in government-guaranteed student loans, benefiting 25,000 students every year.
• Financial assistance for postsecondary education, includes a yearly interest subvention of 3%, direct e-vouchers for 100,000 students, and loans up to Rs 10 lakh.
• Efforts to improve 1,000 industrial training institutes and train 5 million youth over five years in skill development.

Budget 2024: Home Buyers And Renters

With an investment of Rs 10 trillion, PM Awas Yojana (Urban) 2.0, which aims to address the housing needs of 1 crore urban poor and middle-class families, received major investments from the Budget. 

Budget 2024: Free Power And Electricity

Ten million households will receive up to 300 units of free electricity per month under PM Surya Ghar Muft Bijli Yojana. 12.8 million registrations and 1.4 million applications have been made so far.

Budget 2024: Children's Plan

Sitharaman introduced the NPS Vatsalya scheme, which allows parents and guardians to contribute on behalf of their minor children. The plan can easily transition into a non-NPS plan once the child reaches adulthood, providing flexibility and ongoing support.

Budget 2024: Reduction Of Import Duties

The Budget includes some notable changes, one of which is the lowering of import taxes on gold and silver from 15% to 6%. As the second-largest bullion consumer in the world, this action is anticipated to increase retail demand and assist in reducing smuggling. Sitharaman also proposed exempting 25 essential minerals from import duties, including lithium, which is essential for batteries used in electric vehicles.