In a significant budget presentation, Union Finance Minister Nirmala Sitharaman unveiled the interim budget for 2024, outlining the government’s focus on the welfare of farmers, women, youth, and the economically disadvantaged. While maintaining the current tax rates, Sitharaman addressed various sectors and proposed initiatives to foster economic development. Here are the top 10 takeaways from the Union Budget 2024:
Unchanged Tax Rates: Despite expectations, there were no alterations in tax slabs, ensuring continuity in the existing tax regimes. The finance minister expressed the government’s commitment to resolving long-standing direct tax issues, benefiting up to 1 crore taxpayers.
Vande Bharat Railways: To enhance passenger safety and convenience, Sitharaman announced the conversion of 40,000 standard railway bogies to Vande Bharat standards. Economic railway corridor programs and infrastructure developments are set to improve travel times and safety.
Focus on Women Empowerment: Initiatives like the Lakhpati Didi scheme, empowering women in self-help groups, were highlighted. The beneficiary target for Lakhpati Didi has been increased, and healthcare coverage under the Ayushman Bharat scheme will now include ASHA workers, Anganwadi workers, and helpers.
FDI – First Develop India: The government is actively pursuing bilateral investment treaties to promote foreign direct investment (FDI) under the banner of “First Develop India.” This move is aimed at encouraging investments from foreign partners.
Research & Innovation Boost: A corpus of Rs 1 lakh crore with 50-year interest-free loans will be established to foster private sector research and innovation. The focus is on emerging fields and leveraging technology and youth potential.
Startup Tax Benefits Extended: Tax benefits for startups and investments made by sovereign wealth and pension funds have been extended by one year. Certain IFSC units will continue to enjoy exemptions from taxes on a portion of their income.
Lakshadweep Tourism Development: Acknowledging the rise in popularity of domestic island destinations, the government plans to invest in port connectivity, tourist facilities, and amenities in island groups, including Lakshadweep, to boost domestic tourism.
Infrastructure Boost: Funding for significant infrastructure projects in 2024–2025 has increased to Rs 11.1 lakh crore, marking an 11.1% rise from the previous year. This substantial investment is expected to have a multiplier effect on job creation and economic growth.
Middle-Class Housing Support: Ahead of the Lok Sabha polls, Sitharaman introduced a program to assist the middle class residing in rented homes, slums, chawls, and unauthorized colonies in purchasing or constructing their own homes. Additionally, 2 crore more houses for the poor in rural areas will be built under the Pradhan Mantri Awas Yojana (Grameen).
Defence Budget Increase: The defence budget has been increased by Rs 6.2 lakh crore, constituting approximately 8% of the total expenditure. A new program focusing on deep tech in the defence sector was also announced to bolster national security.
As India looks ahead to a promising future, these budgetary allocations and policy initiatives aim to pave the way for inclusive growth and development across various sectors.
