- New tax regime changes : Income up to Rs 7.75 lakh exempt from tax
- Angel tax abolished, boost for investors, startups
- Budget bonanza for Bihar, Andhra Boosts Allies Nitish, Naidu
- Defence budget pegged at ₹6.21 lakh crore for 2024-
New Delhi: Finance Minister Nirmala Sitharaman as she presented her seventh consecutive Budget and the first of the third term of the NDA government. Previously Morarji Desai had presented six budgets consecutively. Employment creation, youth skilling and the middle class are main highlights of this year’s Budget. In her Budget speech, spanning 1 hour 40 minutes, Sitharaman also announced relief for taxpayers who have opted for the new tax regime, hiking the standard deduction from Rs 50,000-Rs 75,000. The markets crashed immediately after the Budget announcement. The BSE Sensex lost 1248.23 points, while the Nifty was down 409 points. However, it recovered later in the day.
Sitharaman said the Budget’s nine priorities include productivity, jobs, social justice, urban development, energy security, infrastructure, and reforms.
Budget 2024: Sitharaman’s Speech Highlights
- PERSONAL TAX: In a relief to the middle class, Finance Minister Nirmala Sitharaman has announced changes to the new tax regime, increasing the standard deduction to Rs 75,000 from Rs 50,000. The new income tax slabs are:
- Up to Rs 3 lakh, the tax is NIL
- From Rs 3 lakh to Rs 7 lakh, the tax rate is 5%
- From Rs 7 lakh to Rs 10 lakh, the tax rate is 10
- From Rs 10 lakh to Rs 12 lakh, the tax rate is 15%
- From Rs 12 lakh to Rs 15 lakh, the tax rate is 20%
- Above Rs 15 lakh income, the tax rate is 30%
Budget: Key Components
Defence budget pegged at ₹6.21 lakh Cr for 2024-25: The allocation for defence in the Union Budget was ₹6.2 lakh crore for 2024-25, the same as the allocation in the interim budget presented in February and is just a marginal increase from last year. “The capital outlay of ₹1,72,000 crore will further strengthen the capabilities of armed forces. Earmarking of ₹1,05,518.43 crore for domestic capital procurement will provide further impetus to Atmanibharta,” Defence Minister Rajnath Singh said on social media.
- JOB CREATION: Sitharaman announced an allocation of Rs 2 lakh crore for job creation over the next five years and three employment-linked schemes. The first scheme includes direct benefit transfer of one month salary in three instalments up to Rs 15,000 to first-time employees registered in EPFO. The second scheme will incentivise additional employment in the manufacturing sector linked to the employment of first-time employees. The third scheme includes reimbursement to employers up to 3,000 per month for 2 years towards their EPFO contribution for each additional employee.
- EDUCATION: For students, Nirmala Sitharaman announced loans of up to Rs 10 lakh for higher education in domestic institutions. A scheme for providing internship opportunities in 500 top companies to 1 crore youth in 5 years has also been announced. In total, the Budget has allotted Rs 1.48 lakh crore for education, employment and skilling.
- ANGEL TAX ABOLISHED: In a bid to boost investment and the start-up ecosystem, the government abolished angel tax. Angel tax is levied on funds raised by startups if they exceed the fair market value of the company.
- BONANZA FOR ANDHRA PRADESH, BIHAR: The government has announced a series of measures for the development of Andhra Pradesh and Bihar. While Rs 15,000 crore has been announced for the development of Amravati as Andhra Pradesh’s capital, an outlay of Rs 26,000 crore has been proposed for various road projects in Bihar.
- WHAT’S CHEAPER: Mobile phones are expected to get cheaper with the government announcing a reduction in customs duty on mobile phones, parts and chargers to 15%. The customs duties on three cancer medicines have been exempted. Moreover, the cost of imported gold, silver, leather goods, and seafood will also decrease.
- TOURISM: In the tourism sector, Sitharaman said the Vishnupath temple at Gaya and Mahabodhi temple in Bodhgaya will be modelled on the Kashi Vishwanath corridor. Nalanda will be developed as a tourist hotspot. She also announced support for development of Odisha’s temples and pristine beaches.
- URBAN HOUSING: Announcing PM Awas Yojana Urban 2.0, Sitharaman said housing needs of 1 crore urban poor and middle-class families would be addressed with an investment of Rs 10 lakh crore. This will include central assistance of Rs 2.2 lakh crores in the next five years.
- WOMEN: Women-specific skilling programmes have been announced by the government in the Budget. “Working women hostels will be set up. Higher participation of women in the workforce is to be promoted through hostels and crèches,” Sitharaman said.
- CAPITAL EXPENDITURE: The government will provide Rs 11.11 lakh crore for capital expenditure for 2024-25, which is 3.4 per cent of the GDP. Sitharaman also announced the ‘Poorvodaya’ scheme for all-round development of the Eastern region of the country, covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh.
- FARMERS: In the next two years, 1 crore farmers across the country will be initiated into natural farming, Sitharaman said. A provision of Rs 1.52 lakh crore for the agriculture and sectors has been made.
