The Indian Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, represents a forward-looking approach to accelerating India’s economic development while addressing the country’s evolving socio-economic challenges. As India continues its recovery from the pandemic and strives to strengthen its global standing, this budget seeks to promote inclusive growth, sustainable progress, and support for key sectors that are vital to the nation’s economy.
This article outlines the major provisions of Budget 2024, focusing on what matters most to individuals, businesses, and government programs. We will also cover frequently asked questions that have been trending across platforms like YouTube and Google.
Tax Reforms: Relief for the Middle Class and Simplification of the Tax System
A key component of Budget 2024 is to ease the tax burden on the middle class, encourage tax compliance, and simplify the overall tax structure. Here are the major tax changes:
Revised Income Tax Slabs and Benefits
Personal Income Tax Slabs Updated: To provide relief to the middle class and stimulate consumer spending, the government has made adjustments to the income tax slabs under the new tax regime. Significant changes include raising the basic exemption limit for individuals in the 20% and 30% tax brackets, as well as reducing the tax rates.
New Income Tax Slabs (Under the New Regime):
Up to ₹5 lakh: Nil
₹5 lakh to ₹7.5 lakh: 10%
₹7.5 lakh to ₹12 lakh: 15%
₹12 lakh to ₹15 lakh: 20%
Above ₹15 lakh: 30%
These changes aim to offer substantial relief to the middle-income group and encourage higher disposable income, thus potentially increasing consumer demand.
Tax Exemptions for Bonuses and Gratuities
The budget proposes tax exemptions for bonuses and gratuities for salaried individuals in the middle-income bracket, helping improve employee satisfaction and retention.
Simplification of Tax Filing
The budget includes provisions to streamline the tax filing process, making it more convenient for taxpayers. This includes expanding the use of Pre-Filled Income Tax Returns and introducing Digital Tax Filing Services to reduce paperwork and enhance ease of compliance.
Rural India: Focus on Agriculture and Infrastructure Growth
With rural India supporting the majority of the population, this budget allocates significant resources to improve livelihoods, education, and infrastructure in rural areas.
Agricultural Credit Boost
The agricultural credit target for FY 2024-25 has been increased to ₹20 lakh crore. This will provide farmers with access to affordable credit and help them meet their working capital needs, as well as support small and medium-sized enterprises (SMEs) in rural areas.
Extension of MSP and Crop Insurance Schemes
The government has expanded the Minimum Support Price (MSP) program to include more crops, ensuring fair prices for farmers. The Pradhan Mantri Fasal Bima Yojana (PMFBY) has also been strengthened with additional funding to improve risk management for farmers.
Rural Infrastructure Development
A significant allocation has been made to enhance rural infrastructure, focusing on roads, electricity, and internet connectivity. This will not only generate employment in rural areas but also ensure that development is more evenly spread across the country.
Digital Economy and Innovation: Preparing for the Future
Recognizing the growing role of technology in driving economic progress, Budget 2024 prioritizes investments in digital infrastructure, innovation, and startups.
Expansion of Digital Rupee and Blockchain Research
The government is set to expand the Digital Rupee initiative, which was launched earlier, to facilitate broader use in retail transactions. Additionally, there will be greater investment in blockchain technology research, encouraging its application across sectors such as finance, healthcare, and logistics.
Support for Startups and Innovation
A ₹10,000 crore startup fund has been allocated to help fund emerging startups, particularly in the tech sector. This initiative aligns with the government’s “Startup India” vision and is expected to boost innovation and entrepreneurship.
Cybersecurity Infrastructure
In response to the growing digital landscape, the budget proposes the creation of a Cybersecurity Infrastructure Fund, aimed at enhancing the nation’s cybersecurity framework and protecting businesses and citizens from online threats.
Healthcare and Education: Expanding Access and Improving Standards
Increased Investment in Healthcare
The National Health Mission has been allocated increased funding, with an emphasis on improving healthcare facilities in smaller towns and rural areas. Furthermore, the Ayushman Bharat scheme will be expanded to provide free healthcare services to more low-income citizens.
New Medical Colleges and Health Centers
The budget proposes the establishment of new medical colleges in underserved areas, aiming to boost medical education and improve healthcare access in remote regions.
Focus on Education and Skill Development
The government continues to support the National Education Policy (NEP), with a strong focus on skill development programs that prepare the youth for jobs in high-demand sectors such as AI, data science, and renewable energy. Additionally, existing vocational training centers will be upgraded.
Infrastructure Investment: Building for a Strong Future
India’s infrastructure development is critical for economic growth, and Budget 2024 provides significant funding to modernize transportation, energy, and urban systems.
Historic Infrastructure Funding
The infrastructure budget has been raised to ₹15 lakh crore, a record amount aimed at modernizing roads, bridges, ports, and airports. The Bharatmala Pariyojana, India’s flagship road development program, will see enhanced funding to improve connectivity in rural and semi-urban regions.
Investing in Green Energy
In line with its commitment to a net-zero carbon future, the government has allocated funds for green energy initiatives, including solar and wind power projects. Investments will also be made in battery storage technologies, reducing dependence on fossil fuels.
Urban Mobility and Electric Vehicles
To address urban congestion, the government will focus on expanding public transport systems in Tier 1 and Tier 2 cities. Additionally, investments in electric vehicle (EV) charging infrastructure and incentives for domestic EV manufacturing are part of the strategy to promote sustainable mobility.
Social Welfare: Focus on Vulnerable and Marginalized Groups
The budget introduces a range of initiatives aimed at improving the quality of life for marginalized communities.
Welfare Programs for Women and Children
The government has significantly increased allocations for women and children welfare schemes, such as the Beti Bachao Beti Padhao Yojana and Integrated Child Development Services (ICDS). There will also be specialized skill development programs targeting women, particularly in rural and urban areas.
Support for the Elderly and Differently-Abled
The budget includes provisions to enhance financial support and healthcare services for the elderly. It also introduces new measures to assist the differently-abled, including subsidies for assistive technologies to help them live more independent lives.
A Closing Perspective
The Union Budget 2024 introduces a range of reforms aimed at fostering economic growth, supporting rural development, and ensuring a sustainable future for India. With large allocations for infrastructure, social welfare, digital innovation, and tax relief, the budget aligns with the government’s vision for a resilient, strong, and inclusive India.
These reforms not only provide immediate relief but also lay the foundation for long-term economic stability, driving growth across various sectors and demographics. As India works towards becoming a global economic powerhouse, the measures in this budget are set to shape a brighter, more equitable future for all.
FAQs:-
How will the changes in income tax slabs affect me?
If you are within the revised income range, you will experience a reduction in your tax liabilities, resulting in higher disposable income that can be used for savings or increased spending.
What is the significance of the Digital Rupee in this Budget?
The Digital Rupee aims to modernize India’s financial ecosystem, offering a secure, efficient, and faster alternative to traditional currencies. Its expansion reflects the government’s push for a more digital, cashless economy.
What impact will the rural development focus have on rural citizens?
The increased funding for agriculture, infrastructure, and healthcare will improve the quality of life for rural populations by providing better access to credit, services, and job opportunities.
Will Budget 2024 lead to more jobs?
Yes, the increased focus on infrastructure, digital innovation, and skill development is expected to create substantial employment opportunities, particularly in sectors such as renewable energy, IT, and public transportation.
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