Union Budget 2024: Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2024-25 on Tuesday. In her speech, Sitharaman announced several initiatives and changes related to tax, MSMEs, the manufacturing sector, and agriculture, among others. The main focus of this year’s budget was agriculture, employment, inclusive development, manufacturing and services, urban development, energy, infrastructure, Innovation, R&D and NexGen reforms.
Here is the compilation of the major announcements by the Finance Minister in Budget 2024.
- The fiscal deficit is projected to be 4.9 per cent of GDP for the current fiscal year, with a target to reduce it to 4.5 per cent by the end of the following year.
- In Budget 2024 updates, the government has reduced its planned gross market borrowing by Rs 12,000 crore for FY25. The revised borrowing target is Rs 14.01 lakh crore, down from the Rs 14.13 lakh crore previously announced in the interim budget.
- Budget 2024 announced an increase in the deduction for Employer National Pension Scheme (NPS) contributions to 14 per cent.
- FM announced during her budget speech a comprehensive review of the Income Tax Act 1961 to support the middle class of the country.
- Under the new tax regime, the standard deduction has been increased from Rs 30,000 to Rs 75,000, resulting in savings of Rs 17,500. Additionally, the deduction on family pension for pensioners has been raised from Rs 15,000 to Rs 25,000.
- New tax brackets were introduced in the new tax regime in the budget 2024.
- 0-3 Lakh - Nil
- 3-7 Lakh - 5 per cent
- 7-10 Lakh - 10 per cent
- 10-12 Lakh - 15 per cent
- 12-15 Lakh - 20 per cent
- 15 Lakh Above - 30 per cent
- The government has reduced the TDS on e-commerce to 0.1 per cent from the previous 1 per cent.
- The angel tax will be completely abolished for all categories of investors, thereby eliminating the tax burden associated with angel investments across different investor groups.
- The basic customs duty on gold and silver has been lowered to 6 per cent, while platinum will now have a duty of 6.4 per cent. Customs duties have been reduced on ferronickel and blister copper, while specified telecom equipment will increase from 10 per cent to 15 per cent.
- Certain brood stocks, shrimps, and fish feed will now face a reduced customs duty of 5 per cent. Similarly, customs duty on mobile phones, mobile PCBA, and chargers has been reduced to 15 per cent. In addition, customs duties have been waived for 25 critical minerals.
- The budget stated that Rs 10 lakh crore has been allocated to facilitate the construction of 1 crore houses for urban poor and middle-class citizens.
- The capital expenditure (Capex) allocation for infrastructure has been maintained at the previously set target of Rs 11.1 lakh crore as per the interim budget announcement.
- The government has reduced the corporate tax rate on foreign companies from 40 per cent to 35 per cent.
- FM announced the launch of a Prime Ministerial Package comprising five schemes designed to enhance employment opportunities and skill development. An allocation of Rs 2 lakh crore has been made. Of this, Rs 1.48 lakh crore has been allocated for education, employment, and skill enhancement initiatives.
- The government will implement three employment-linked schemes focusing on EPFO enrollment and supporting first-time employees. New hires will receive up to Rs 15,000 in direct benefit transfers in three instalments, with a monthly salary cap of Rs 1 lakh. This initiative aims to benefit 2.1 lakh youths. Employers will also receive reimbursement of up to Rs 3,000 per month for two years for each new employee, targeting the creation of 50 lakh new jobs and benefiting 30 lakh youths. Additionally, a scheme will provide internships to one crore youths over five years, and rental housing for industrial workers will be facilitated under a PPP model.
- The budget also focused on Bihar and Andhra Pradesh. The government will fund new airports, medical facilities, and sports infrastructure, and Rs 26,000 crore will be given for highways in Bihar. Additionally, Rs 15,000 crore has been allocated for Andhra Pradesh, with further allocations planned in subsequent years.
Sectorwise Budget Allocation in Union Budget 2024
- Defence: Rs 6.21 Lakh Crore
- Agriculture: Rs 1.52 Lakh Crore
- Education: Rs 1.48 Lakh Crore
- Rural: Rs 2.66 Lakh Crore
- Home affairs: Rs 2.19 Lakh Crore
- IT & Telecom: Rs 1.28 Lakh Crore
READ ON ABP LIVE | Union Budget 2024: Education Loans To Paid Internships – 10 Major Announcements In Education And Job Sector