New Delhi: Finance Minister Nirmala Sitharaman delivered her seventh Union Budget for the fiscal year 2024-25 on July 23 during the Parliament’s Budget Session. This achievement makes her the first finance minister in Indian history to present seven consecutive budgets, breaking the previous record set by former Prime Minister Morarji Desai, who presented six consecutive budgets between 1959 and 1964.

Key Announcements in Budget 2024:

1. Taxation Changes:

Sitharaman announced changes to the tax regime, including an increased standard deduction and revised tax rates for salaried individuals. Additionally, she revealed adjustments in customs duties on gold, silver, mobile phones, and other goods.

  • Revised Tax Rates under New Tax Regime:
    • Income up to ₹3 lakh: No tax
    • ₹3-7 lakh: 5%
    • ₹7-10 lakh: 10%
    • ₹10-12 lakh: 15%
    • ₹12-15 lakh: 20%
    • Above ₹15 lakh: 30%

2. Capital Expenditure and Infrastructure:

  • The Centre’s FY25 capital expenditure is set at ₹11.1 lakh crore, consistent with the Interim Budget.
  • Infrastructure spending is targeted at 3.4% of GDP.

3. Employment and Skilling Initiatives:

  • Five schemes are planned to benefit 4.1 crore youth over the next five years with a central budget of ₹2 lakh crore.
  • A comprehensive internship scheme for one crore youth in top companies is set to roll out over five years.
  • Employment-linked incentives include one month’s wage support for first-time employees.
  • Special programs will focus on skilling women and increasing their workforce participation.

4. Support for MSMEs and Manufacturing:

  • Special focus on Micro, Small, and Medium Enterprises (MSMEs) and the manufacturing sector.
  • Credit guarantee schemes and term loans will be provided for machinery purchases.
  • A technology support package for MSMEs is being introduced.
  • The Small Industries Development Bank of India (SIDBI) will open 24 new branches to support MSME clusters.

5. Financial Initiatives:

  • The Mudra loan limit has been raised from ₹10 lakh to ₹20 lakh for previous borrowers.
  • Financial support is available for higher education loans up to ₹10 lakh in domestic institutions.
  • An integrated technology system is being developed for the Insolvency and Bankruptcy Code (IBC).

6. Agriculture and Rural Development:

  • A budget of ₹2.66 lakh crore is allocated for rural development.
  • Agricultural research will focus on productivity and climate-resilient crop varieties.
  • An initiative aims to introduce one crore farmers to natural farming over two years.

7. Infrastructure and Regional Development:

  • Rental housing in Public-Private Partnership (PPP) mode is proposed for industrial workers.
  • A special financial package of ₹15,000 crore is allocated for Andhra Pradesh.
  • New airports, medical facilities, and sports infrastructure are planned for Bihar.

8. Economic Outlook:

  • Inflation is moving towards the 4% target.
  • India’s economic growth is described as a “shining exception.”
  • The focus is on job creation and boosting consumption, potentially benefiting consumer goods, real estate, and auto sectors.

9. Nine Priority Areas:

  • The budget emphasizes nine priority areas: Agriculture, Employment, Inclusive Development, Manufacturing and Services, Urban Development, Energy, Infrastructure, Innovation and R&D, and Next Generation Reforms.

10. Women-Led Development:

  • Over ₹3 lakh crore is allocated for schemes benefiting women and girls.

11. Social Welfare:

  • The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) is extended for five years, benefiting over 80 crore people.

12. Digital and Technological Advancements:

  • Development of Digital Public Infrastructure (DPI) applications for credit, e-commerce, law and justice, and corporate governance.

Conclusion:

This budget outlines the government’s commitment to addressing various sectors and fostering economic growth, with a particular emphasis on job creation, women-led development, and technological advancements. As the budget unfolds, its impacts on the income tax slabs, stock market, and corporate sector are anticipated to be significant.

For live coverage and updates on Budget 2024, including income tax slabs, share market impact, key highlights, and corporate reactions, stay tuned to our ongoing reports.