Key Items and Updates of Budget 2024
According to the Press Information Bureau (PIB), the following are the key updates of India’s Budget 2024 presented by Finance Minister Nirmala Sitharaman:
Finance Minister Nirmala Sitharaman sets nine priorities in the budget: productivity and resilience in agriculture, employment and skills, human resource improvement and social justice, manufacturing and services, urban development, energy security, infrastructure, innovation and research and development and next-generation reforms. Budget 24-25 earmarked ₹ 1.48 crore for education, employment and skill development.
One million farmers will be introduced to natural farming through certification and branding carried out by research institutions and participating Gram Panchayats.
Incentives for 30,000 youths to enter the labor market, including one month’s PF (provident fund) payment.
Benefits have been extended to Bihar and Andhra Pradesh, but no special package for these states has been announced.
Here is a sector-wise breakdown of the most important Union Budget 2024 announcements so far:
1) Revised Income Tax Slabs
Revised Tax Slabs . the finance minister said to save Rs 17,500 crore in income tax.
Income (₹) Tax Bill
0-3 lakh Nil
3-7 lakh 5%
7-10 lakh 10%
10-12 lakh 15%
₹ 15 lakh Nil and above than 30%
2) FY25 budget deficit projected at 4.9% of GDP
- FM Nirmala Sitharaman projects FY25 deficit at 4.9% of GDP of 5.1% in the interim budget, and the goal is to lower it below 4.5% next year.
- Expenditure for FY25 is ₹ 48.21 lakh, while revenue is estimated at ₹ 32.07 lakh
3) ₹ 1.52 lakh for agriculture sector
- ₹ 1.52 lakh for agriculture and allied sectors.
- Creation of 10,000 bioresearch centers.
- Ecological farming initiative for 1 million farmers with branding and certification.
- Development of vegetable production clusters near consumption centers.
- Financial support to shrimp processing centers and export facilitation through NABARD.
- Launch of Kisan Credit Cards in five states and registration of 6 million farmers for production of pulses and oilseeds.
4) Employment Opportunities for 4.1 Crore Youth
- ₹ 2,000,000,000 has been allocated to create employment opportunities for 4.1 Crore youth over the next five years.
- The proposal will employ approximately 4.1 million young people over the next five years.
5) ₹ 2.66 lakh for rural development including rural infrastructure.
- Under the Prime Minister Awas Yojana, another three million houses will be built, covering both rural and urban areas.
6) Vocational Skills, ITIs and Apprenticeships
- Industrial Training Institutes
- Over the next five years, 1,000 ITIs will be upgraded using nodal and surface models, focusing on results and quality through government-industry collaboration.
7) Support for MSMEs
- New mechanism to ensure continued bank lending to SMEs during economic stress.
- Mudra loan limit to be increased from ₹ 10,000 to ₹ 20 lakh.
- The spending limit for mandatory subscription to the TReDS platform has been reduced from ₹ 500 to ₹ 250.
- Financial assistance will be provided to 50 multi-product food irradiation units in the MSME sector.
E-commerce export centers will be set up under PPP mode to help MSMEs and traditional artisans sell their products internationally.
8) Revised Skilled Loan Scheme
- The Model Skilled Loan Scheme will be revised to provide loans of up to ₹ 7.5 lakh annually to 25,000 students with government support.
- Working women’s shelters and day centers are created in collaboration with the industry.
E-Vouchers for loans of up to ₹ 10,000 for higher education in domestic institutions to 1,00,000 students per year including 3% annual interest subsidy.
9) 3 Employment Incentive Schemes
- Scheme A: One Time Employment Incentives
New hires will get a monthly salary of up to ₹ 15,000 paid in 3 installments as Direct Benefit Transfer.
- Scheme B: Creation of Manufacturing Jobs
Incentives are provided to hire first-time workers in the manufacturing sector with benefits based on EPFOfrontier first four years of employment to hire first-time workers in the manufacturing sector. - Scheme C: Employer Subsidy
Employers will be reimbursed up to ₹ 3,000 per month for each additional employee from EPFO contributions for two years. Salary cap is ₹ 1000 per month benefiting 2.1 lakh youth.
10) Industrial Parks in 100 Cities
- Investment-ready “plug and play” industrial park to be built in or near 100 cities.
- Twelve industrial parks have been sanctioned under the National Industrial Corridor Development Programme.
- Establish a mandate for the domestic production and recovery of critical minerals and the acquisition of minerals from abroad.
11) Customs duty reduced
- Customs duty on gold and silver was reduced to 6% and platinum to 6.4%.
Lithium, copper and cobalt are now duty free. - Extended exemption list for capital goods used in the manufacture of solar cells and panels.
- Basic Customs Duty (BCD) on MDI used for production of spandex yarn has been reduced from 7.5% to 5% under certain conditions.
- Customs duty exemptions apply to the manufacture of connectors and oxygen-fused copper.
12) Changes to Capital Gains Tax
- Short-term capital gains tax on certain financial assets has been set at 20%.
- The long-term capital gains tax on financial assets is now 12.5%.
- TDS payment for e-commerce operators has been reduced from 1 percent to 0.1 percent.
13) Advanced Supercritical Thermal Facilities
- Advanced Supercritical Thermal Facilities, known for their high efficiency, have an 800 MW commercial plant supported by government tax subsidies.
- The government is developing electricity storage solutions to support renewable energy and promote research into smaller nuclear reactors.
- Collaboration with the private sector to focus on building small Bharat reactors and upgrading new nuclear technologies.
- A strategic action plan will be created for industries with challenging emissions, including energy efficiency and emissions reduction targets.
14) Angel Tax Abolished
- Angel Tax has been abolished for all investors. The move is proposed to strengthen the startup ecosystem.
15) Three tax-free cancer drugs
- FM has announced plans to review and rationalize duties in next six months after reducing them in 2022-23.
- Three other medicines intended for cancer diseases are exempt from tax exemption obligations.
Changes in the basic customs duty on X-ray tubes and flat panel detectors will be made to support domestic production of X-ray equipment.
16) Private infrastructure investment to be supported
- Capital investment is earmarked for ₹ 11.11 lakh, which is 3.4% of GDP.
- Private sector investment in infrastructure will be increased with viability gap financing and a new market-based financing framework will be introduced.
- Countries are encouraged to respond to this level of investment based on their own infrastructure priorities.
17) Scheme to support development of 100 weekly markets
- Building on the PM Swanidhi scheme for street vendors, a new initiative will be launched to establish 100 weekly markets in selected cities over the next five years.
Conclusion : The Union Budget 2024 presents a range of impactful initiatives and reforms aimed at bolstering India’s economic growth, supporting various sectors, and improving the livelihoods of its citizens. From revised income tax slabs to significant investments in agriculture, education, employment, and infrastructure, the budget sets a clear path for sustainable development. With incentives for natural farming, MSMEs, skill development, and private sector infrastructure investment, the budget seeks to create a robust and inclusive economy.
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