Union Budget 2024 Highlights: Record High Capex In Budget Will Drive The Economy, Says PM Modi
Union Budget 2024 Highlights: Please follow this space for all the latest updates related to Budget 2024, to be tabled by Finance Minister Nirmala Sitharaman today
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Union Budget 2024 Highlights: Hello and welcome to ABP Live's Budget 2024 LIVE blog. Please follow this space for all the latest updates on the Budget Presentation scheduled for Tuesday,...More
Prassann Daphal, CEO of Recyclekaro, highlighted the government's decision to grant a 25 per cent customs duty exemption on approximately 25 critical minerals. He said this move is expected to stimulate demand in renewable sectors such as energy storage solutions, electric vehicles (EVs), advanced electronics, defence, and space industries. The initiative aims to enhance the refining and processing capabilities of these minerals, thereby reinforcing a robust supply chain ecosystem.
Rajesh Bharatiya, Co-Founder & CEO of Peoplefy, commended Finance Minister Nirmala Sitharaman's 2024-25 Union budget proposals concerning skill development, emphasising their potential to strengthen India's workforce and economy by improving employability and driving economic growth. However, the budget lacks specific measures outlining the creation of new jobs. Given India's demographic profile, which adds over 40 million new job seekers annually, alongside skill development initiatives, a comprehensive strategy for job creation is imperative.
ASSOCHAM praised Finance Minister Nirmala Sitharaman for her strategic direction in the Union Budget for 2024-25, describing it as a clear affirmation of India's intent to harness its demographic dividend and entrepreneurial energy. The budget allocates national resources towards creating high-quality jobs, boosting manufacturing, and committing to five years of capital expenditure while maintaining fiscal discipline.
Mukul Goyal, Co-founder of Stratefix Consulting said that the Union Budget 2024 presents an ambitious framework aimed at revitalising India's economic landscape, particularly for MSMEs, startups, artificial intelligence, and job creation. With a proposed allocation of Rs 22,000 crore for the MSME sector, this budget has the potential to catalyse significant growth and innovation.
Amit Tandon, CEO & Managing Director of Asia Shipping India, commented on the Union Budget 2024-25 for the Shipping & Logistics industry. He said, "We commend the government for its forward-looking budget, particularly the node to the Industrial Corridors of Amritsar-Kolkata, Gaya, Kopparthy node on the Vishakhapatnam-Chennai and Orvakal node on Hyderabad-Bengaluru, catalysing the industrial development of the eastern region and the reforms in ownership, leasing, and flagging, are commendable and will significantly boost the industry’s competitiveness and employment opportunities."
Miniya Chatterji, Founding Director of Anant School for Climate Action and CEO of Sustain Labs Paris, said, "The government has laid its focus on energy security as one of the pillars in the Union Budget 2024. I also look forward to the government's focus on developing indigenous energy technologies and building local capabilities amongst micro and small industries in energy production and management."
"The provision of financial support to micro and small industries for shifting to cleaner forms of energy is also a commendable move by the government. Another good move is the exemption of custom duty on capital goods for manufacturing of solar cells and panels," he added.
Nikhil Sharma, Managing Director and Area Senior Vice President- South Asia, Radisson Hotel Group, said that the surge in spiritual tourism has been recognised in budget 2024, and the sector is excited to see the industry receiving much-needed support in this year’s budget.
"The development of road connectivity projects, with a special emphasis on spiritual and cultural corridors, underscores the Government of India’s commitment to fueling the growth of the country's rich cultural and spiritual network of tourism," he added.
Akhil Chandna, Partner at Grant Thornton Bharat, said that the Finance Minister's 7th Budget is a transformational vehicle, emphasising measures to enhance youth employment and skill development nationwide.
"Towards this, the government has introduced 3 new employment-linked incentive schemes for the benefit of both employer and employee. With an aim to boost the confidence of middle-class taxpayers, several announcements are made specially for the taxpayers opting for the New Tax Regime - From reducing the tax slab rates for individuals resulting in saving of up to Rs 10,400 on taxable income above INR 15 lakhs, Increasing the standard deduction on salary from Rs 50,000 to Rs 75,000 and as well as Increasing the threshold for deduction on employer contribution to New Pension Scheme from 10 per cent to 14 per cent of salary," He added.
Appreciating the push given to the agriculture sector in the Budget, Vishal Sharma, co-founder and CEO, AdvaRisk, noted, "The Government went all out to continue its reforms in agri and allied sectors. The Finance Minister proposed to provide coverage to farmers and their land under digital public infrastructure under which 6 crore farmers and their land will be brought into the farmer and land registry. Furthermore, the push to boost digital agriculture infrastructure is a step in the right direction. This mapping of agricultural land using a unique identifier (ULPIN) will help increase credit penetration among farmers."
The executive shared that this will help the lenders in evaluating the credit profile of farmers better and will also reduce chances of defaults.
Prime Minister Narendra Modi said that the Union Budget 2024 will empower every section of society. "It will take the poor farmers from villages on the path to prosperity," remarked the Prime Minister, highlighting the emergence of a new middle class following the upliftment of 25 crore people from poverty.
He emphasised that this budget continues to empower them and offers numerous employment opportunities. "This Budget brings a new scale to education and skill development," he stated. PM Modi underscored that the budget, through its new initiatives, aims to enhance the lives of the middle class, tribal communities, Dalits, and backward classes.
Finance Minister Nirmala Sitharaman held a press conference post the Budget presentation and explained that the Budget aimed to simplify taxation for the people. "If anything, the average taxation actual has come down. When we say it is 12.5 per cent, because we have worked out for each of the different classes... But the point is that we have brought it down from below average to 12.5 per cent, which is the lowest if you look at several years, encourages investment in the market," the Finance Minister noted.
The Model Skill Loan Scheme is set to be revamped. Finance Minister Nirmala Sitharaman said during her budget 2024 speech in parliament that this initiative aims to benefit 25,000 students annually by enabling loans up to Rs 7.5 lakh backed by a guarantee from a government-promoted fund. She also announced several other initiatives for the education sector.
The Centre has allocated Rs 42,277.74 crore to Jammu and Kashmir in the Union Budget for 2024-25, a nominal hike of 1.2 per cent from the Rs 41,751.44 crore given to the Union Territory in the last fiscal.
In the Budget presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on Tuesday, an amount of Rs 40,619.3 crore has been allocated as Central Assistance to Union Territories to meet the resource gap in Jammu and Kashmir. It also includes a sum of Rs 7,900 crore, sanctioned as advance from the Contingency Fund of India that shall stand recouped to the fund after the Demands for Grants for 2024-25 is passed by Parliament and the connected Appropriation Act assented to by the president, the budget document said.
The government has allocated Rs 279 crore to Jammu and Kashmir as grants towards contribution to the Union Territory Disaster Response Fund to meet the expenditure on account of mitigation of disasters caused due to natural calamities.
The government exempted 3 cancer treatment medicines from customs duties and also proposed changes for duties on medical equipments. Sanjeev Singh, Medical Director, Amrita Hospital, said that the Budget will help make life-saving treatments more affordable for patients. "The proposed changes in basic customs duties for x-ray tubes and flat panel detectors will bolster the domestic manufacturing of essential medical equipment, ensuring better accessibility and reduced costs. The government's commitment to constructing new medical colleges is also commendable, as it will help bridge the gap in medical education and healthcare services, especially in developing areas of the nation," the executive said.
Reacting to the government's push for employment and education in the Budget, Er Koneru Satyanarayana, President, KL Deemed to be University, said, "By offering financial support of up to ₹10 lakhs for higher education loans, the government directly aids 1 lakh students annually with interest subvention, thereby reducing financial burdens and promoting domestic institution enrolment. This initiative not only boosts accessibility but also ensures quality education remains within reach. Furthermore, the PM's comprehensive package of five schemes aims to skill and employ 4.1 crore youth over five years, injecting vitality into the job market and fostering a skilled workforce."
"To enable MSMEs and traditional artisans to sell their products in international markets, E-Commerce Export Hubs will be set up in public-private-partnership (PPP) mode. These hubs, under a seamless regulatory and logistic framework, will facilitate trade and export related services under one roof," said Finance Minister Nirmala Sitharaman during her Union Budget 2024 speech.
In a bid to simplify taxation of capital gains, the government increased the tax rate on short-term gains on specified financial assets to 20 per cent, from the earlier rate of 15 per cent. Meanwhile, the tax rate on long-term gains on all financial and non-financial assets was raised to 12.5 per cent.
Small Industries Development Bank of India (SIDBI) will open new branches to expand its reach to serve all major MSME clusters within 3 years and provide direct credit to them. With the opening of 24 such branches this year, the service coverage will expand to 168 out of 242 major clusters, said Union Finance Minister Nirmala Sitharaman while presenting the budget 2024.
The Finance Minister announced changes in the new tax regime as part of the Budget 2024 presentation.
Revised Tax Structure in New Regime -
0-3 lakh - nil
3-7 lakh - 5%
7-10 lakh - 10%
10-12 lakh - 15%
12-15 lakh - 20%
15 lakh above - 30%
The FM announced an increase in taxation on long term capital gains on financial and non-financial assets to 12.5 per cent.
The Budget 2024 issued an abolishment of angel tax for all classes of investors.
Finance Minister Nirmala Sitharaman announced an increase in the exemption limit on capital gains to Rs 1.25 lakh per fiscal year.
The Finance Minister announced a reduction in customs duties on gold and silver to 6 per cent and that of platinum to 6.4 per cent.
The government announces customs duty exemptions for 3 medicines related to cancer to provide relief for patients.
As part of the Budget Estimates, the government announced the fiscal deficit to be at 4.9 per cent of the GDP in the 2024-25 fiscal year.
"We will develop taxonomy for climate finance for enhancing the availability of capital for climate adaptation and mitigation," FM Sitharaman said.
The government announced a boost of Rs 1,000 crore for the space sector to develop space economy in the next decade.
FM Sitharaman said that the government will provide strong fiscal support for infrastructure development over the next five years and issued an capital expenditure outlay of Rs 11.11 lakh crore, coming up to 3.4 per cent of the country's GDP.
The government announced a support of Rs 1.5 lakh crore for providing long-term interest free loans for states to support their resource allocation.
Regarding MSMEs, Finance Minister Nirmala Sitharaman announced the introduction of a credit guarantee scheme aimed at facilitating term loans for MSMEs in budget 2024. This scheme will mitigate the credit risks associated with these enterprises. Each applicant will be eligible for coverage up to Rs 100 crore through a self-financing guarantee fund, with the possibility of more significant loan amounts.
To develop urban housing, the FM announced the PM Awas Yojana Urban 2.0 scheme with an outlay of Rs 10 lakh crore, including central assistance of Rs 2.2 lakh crore in the next 5 years.
The Finance Minister announced a Critical Mineral Mission for domestic production, recycling of critical minerals and overseeing acquisition of critical mineral assets.
FM Nirmala Sitharaman announced government support for the Amritsar-Kolkata industrial corridor, with plans to establish an industrial hub in Gaya, Bihar. This initiative aims to stimulate development in the eastern region. Additionally, the government will facilitate road connectivity projects, including the Patna-Purnea expressway, Buxar-Bhagalpur highway, and the Bodhgaya-Rajgir-Vaishali-Darbhanga route. Further, an additional two-lane bridge over the Ganga in Buxar is also planned, with an investment of Rs 26,000 crores.
FM Sitharaman announced that the mudra loans limit has been enhanced to Rs 20 lakh for entrepreneurs who have availed and successfully repaid loans under Tarun category.
The Finance Minister announced employment-oriented skilling initiatives under the PM's economic package. These programs will work on EPFO enrollment, specifically targeting newly employed individuals. New entrants to the formal workforce will receive a one-month salary as an incentive. This direct benefit transfer of up to Rs 15,000 will be disbursed in three phases. Eligibility for this benefit is set at a monthly salary of Rs 1 lakh, aiming to benefit approximately 210,000 young adults.
The Budget announced an outlay of Rs 2.66 lakh crore for rural development including rural infrastructure.
The Finance Minister announced an allocation of more than Rs 3 lakh crore for schemes benefiting women and girls.
Sitharaman said that under the AP Reorganisation Act, funds will be provided for essential infra such as water, power, rail, and roads.
Budget 2024 included a financial support for loans up to Rs 10 lakh for helping students in higher education.
FM Sitharaman announced the nine priorities of the Union Budget 2024.
Priorities:
Agriculture
Employment
Inclusive development
Manufacturing and Services
Urban Development
Energy
Infra
Innovation, R&D
NexGen reforms
The government announced a new centrally sponsored skilling program which will aim to help 20 lakh youth. The scheme will skill these youth over a period of 5 years and 1,000 industrial training institutes will be created.
FM Sitharaman issued an outlay of Rs 1.52 lakh crore for agriculture and allied sectors.
Budget 2024 issues an outlay of Rs 2 lakh crore for promoting employment and skilling initiatives in the country for 4.1 crore youth, says FM Sitharaman.
India’s economic growth continues to be the shining exception and will remain so in the year ahead. India's inflation continues to be low, stable, and moving towards the 4 per cent target. Core inflation is 3.1 per cent. Steps are being taken to ensure supplies of perishable goods reach markets adequately, says Sitharaman.
The Parliament session for the Budget presentation has started. Watch it LIVE now.
The Union Cabinet, headed by Prime Minister Narendra Modi, today approved the full budget for 2024-25. All eyes are on Finance Minister Nirmala Sitharaman, who will present the budget shortly in parliament. The common man is looking forward to the much-needed tax relief along with India Inc.
The Finance Minister Nirmala Sitharaman also met with President Droupadi Murmu ahead of her Budget presentation.
The Union Budget is expected to introduce a more standardised approach to taxation, ensure policy continuity, and allocate increased funds for capital expenditures and the Production-Linked Incentive (PLI) schemes, all while maintaining fiscal prudence, according to Moody's Analytics.
In a post-election Budget preview, Moody's Analytics Associate Economist Aditi Raman noted that Prime Minister Narendra Modi's Bharatiya Janata Party aims to build confidence and public trust in the new coalition government it leads.
Raman highlighted that while increased capital expenditure could have long-term positive effects, direct incentives are necessary to stimulate investment and household spending in the short term.
Union Finance Minister Nirmala Sitharaman has arrived at the Parliament with the digital 'bahi khata'. The minister will soon hold a meeting with the Cabinet to get approval for the Budget before the final presentation.
Union Finance Minister Nirmala Sitharaman carrying the Union Budget tablet arrives at Parliament along with her team, to present the first Budget in the third term of Modi 3.0 government.
The J&K budget copies have arrived in the Parliament. The Finance Minister will present the estimated receipts and expenditure for the 2024-25 fiscal year (FY25) for Jammu and Kashmir in the Parliament today.
Sharing his expectations for the Budget, TMC MP Saugata Roy, said that the Budget should reflect the realities of the country’s economy. “The biggest economic reality is that unemployment rate in 9.2 per cent in the country, inflation is at all time high. Food inflation is particularly very high. Private sector investment is falling,” he noted. He further expressed that the Budget should focus on helping the domestic economy fare better in these areas.
Minister of State for Finance, Pankaj Chaudhary, today said that the Budget 2024 will be based on Prime Minister Narendra Modi’s policy of ‘Sabka Saath Sabka Vikas’.
Nirmala Sitharaman has arrived at the Finance Ministry. The minister has completed the photo shoot with the Budget Team. Now, she will visit the Rashtrapati Bhawan and the Parliament.
At 10 AM, a photo shoot of the FM and the Minister of State will take place in the Parliament House. This will be followed by a Cabinet meeting at 10:15 AM to approve the Budget, and finally, Sitharaman will present the Budget at 11 AM in the Parliament.
Finance Minister Nirmala Sitharaman arrived at the Ministry of Finance ahead of the scheduled Budget Presentation in Parliament later today.
One of the most anticipated figures in the Budget will be the gross borrowing amount. The government's gross borrowing outlay stood at Rs 14.13 lakh crore in the 2024-25 fiscal year (FY25) according to the Interim Budget. However, it is expected that this number will improve on account of the surplus dividend received by the government from the RBI and fiscal entities. The borrowing represents the dues taken by the government from the market to finance its fiscal deficit.
The Budget is expected to provide better projections for fiscal deficit for the current fiscal year, backed by tax buoyancy. The Interim Budget in February estimated the deficit to be 5.1 per cent for the 2024-25 fiscal year and 4.5 per cent for the next 2025-26 fiscal year (FY26). The fiscal deficit represents the difference between the government's expenses and income.
The Economic Survey revealed that the manufacturing sector played a crucial role in the economy in the 2023-24 fiscal year (FY24). The economy grew at 8.2 per cent in the fiscal, while the industrial growth rate in the period stood at 9.5 per cent. In the last decade, the survey stated that the manufacturing sector clocked a growth rate of 5.2 per cent. Therefore, the Budget is expected to continue its focus on industry and provide stimulus to the manufacturing industry for further growth.
The Economic Survey on Monday highlighted that inflation is estimated to decline to 4.5 per cent in the 2024-25 fiscal year (FY25) and 4.1 per cent in the 2025-26 fiscal year (FY26) as per the estimates of the Reserve Bank of India. It further cautioned that long-term price stability can only be managed by a forward-looking approach. As such, the Budget is anticipated to focus on expanding domestic production capabilities for essential commodities to help manage inflation in the medium-to-long-term.
Finance Minister Nirmala Sitharaman is scheduled to table her seventh consecutive Budget today. The minister will present the Union Budget 2024 in the Parliament at 11 AM. The Budget is anticipated to focus on providing tax relief for the common man and lay the foundation to achieve the goal of making India a developed country, i.e., the target of ‘Viksit Bharat’ by 2047.
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