Union Budget 2024: List of Key Announcements By Nirmala Sitharaman

By
Sanjay Singh
-

Finance Minister Nirmala Sitharaman presented the Union Budget 2024-2025 in the Lok Sabha, outlining the government’s fiscal plans and introducing significant tax reforms. This budget, following the re-election of the Modi-led government for a third term, aims to boost economic growth while providing relief to taxpayers.

Key Announcements To Know

The Finance Minister emphasised nine key priorities, including agricultural productivity, employment generation, and infrastructure development. With inflation reported as stable and moving towards the 4% target, the budget balances fiscal consolidation with developmental aspirations. Let’s examine the major announcements across various sectors, including the noteworthy changes in the tax structure.

  • Income Tax Reforms

One of the most significant announcements in the Budget 2024 was the overhaul of the income tax structure under the new regime. The Finance Minister introduced changes aimed at incentivising the adoption of the new tax system:

  1. The standard deduction was increased from Rs 50,000 to Rs 75,000, providing immediate relief to taxpayers.
  2. The tax slab for the 5% rate was expanded from Rs 5 lakh to Rs 7 lakh, offering further tax savings.
  3. These changes are expected to result in savings of up to Rs 17,500 for taxpayers under the new regime.

Notably, no alterations were made to the old tax regime, signalling the government’s intent to encourage a shift towards the new system. The capital gains tax regime also underwent a complete revamp, with increased tax rates being introduced.

  • Angel Tax Abolition

In a move to stimulate startup investments, the Finance Minister announced the abolition of angel tax for all classes of investors. This reform is expected to significantly benefit the startup ecosystem in India, encouraging more investments and potentially keeping startups rooted in the country.

  • Agricultural And Rural Development Initiatives

The agricultural sector received considerable attention in this year’s budget. Key announcements include:

  1. A comprehensive review of agricultural research to boost productivity and develop climate-resilient crop varieties.
  2. Plans to introduce one crore farmers to natural farming over the next two years, supported by 10,000 new bio-input resource centres.
  3. Strategies for achieving self-sufficiency in pulses and oilseeds production.
  4. Allocation of Rs 2.66 lakh crore for rural development, covering various infrastructure projects.
  5. Introduction of the Jan Samarth-based Kisan Credit Card in five states to enhance financial support for farmers.

  • Employment And Skill Development Focus

The budget places a strong emphasis on job creation and skill enhancement:

  1. Allocation of Rs 2 lakh crore to create jobs for about 4.1 crore youth over the next five years.
  2. Rs 1.48 crore earmarked for skilling 20 lakh youth over a five-year period.
  3. Launch of three new employment-linked schemes, including incentives for 30 lakh youth entering the job market.
  4. Proposal for internship opportunities for one crore youth in 500 companies over five years, offering a monthly allowance of Rs 5000.
  5. Upgrade of 1,000 industrial training institutes and establishment of working women hostels.

  • Infrastructure And Urban Development Plans

Infrastructure development continues to be a priority, with significant allocations and initiatives:

  1. Capex allocation of Rs 11,11,111 crore, representing 3.4% of GDP.
  2. Launch of Phase 4 of the PM Gram Sadak Yojana to provide all-weather roads to 25,000 rural habitats.
  3. PM Awas Yojana-Urban to address housing needs of one crore poor and middle-class families with a Rs 10 lakh crore investment.
  4. Plans to promote water supply, sewage treatment, and solid waste management projects in 100 large cities.

  • Energy And Environmental Measures

The budget introduces several measures in the energy sector:

  1. Launch of the Rooftop Solar scheme to provide free electricity to one crore households.
  2. Research and development on smaller nuclear reactors and setting up of Bharat Small Reactors in partnership with the private sector.
  3. Establishment of an 800 MW Advanced Ultra-Super Critical Thermal Power Plant.
  4. Plans to formulate a roadmap for hard-to-abate industries, balancing development needs with environmental concerns.

  • Fiscal Management

On the fiscal front, the budget estimates a fiscal deficit of 4.9% of GDP for the current year, with a commitment to reduce it below 4.5% by 2025-26. Net tax receipts are projected at Rs 25.83 lakh crore.

The Union Budget 2024-2025 presents a comprehensive plan focusing on tax reforms, startup encouragement, agricultural resilience, employment generation, and infrastructure development.

RELATED ARTICLESMORE FROM AUTHOR