(Budget 2024 )In the budget presentation for 2024-25, the focus was on four key areas: Kareem (for the poor), Mahilayan (for women), Yuva (for youth), and Annadaata (for farmers).
The Prime Minister unveiled a comprehensive package of five schemes aimed at supporting 4.1 crore youth with jobs and skills over the next five years, requiring a budget of two lakh crore rupees. Additionally, 1.48 lakh crore rupees were allocated to enhance education, employment opportunities, and skill training.
A significant portion of 1.52 lakh crore rupees was earmarked for agriculture and related sectors, with a commitment to introduce three job incentive schemes under the Prime Minister’s initiative, focusing on EPFO enrollment to bolster employment for new entrants and support employers.
A new initiative was launched in collaboration with state governments and industry to skill 20 lakh youth over the next five years. Financial assistance will also be extended for higher education loans up to 10 lakh rupees within domestic institutions.
The budget emphasized developmental plans for the eastern region of India, encompassing Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. Additionally, substantial investments were pledged for road connectivity projects, including the Patnapurnia Expressway, Aksar Bhagalpur Expressway, and enhancements to infrastructure in Bodh Gaya, Rajgir, Vaishali, and Darbhanga, along with the construction of an additional two-lane bridge over the river Ganga at Aksar, totaling an estimated 26,000 crore rupees.
India’s Budget 2024-25: Major Investments in Power, Infrastructure, Women’s Development, and Housing
Power projects, including a new 2,400 megawatt power plant at Peerpenti, will cost 21,400 crore rupees. New airports, medical colleges, and sports facilities will also be built in Bihar. The government is working hard to meet the promises made in the Andhra Pradesh Reorganisation Act. This year, 15,000 crore rupees will be set aside to support women-led development. More funds will be added in future years.
The budget includes over 3 lakh crore rupees for programs that help women and girls. This shows the government’s commitment to increasing women’s roles in economic growth.
A new credit guarantee scheme will help small and medium businesses get loans for machinery and equipment without needing collateral or a third-party guarantee. This scheme will pool credit risks and provide guarantees up to 100 crore rupees per applicant.
Finally, housing needs for 1 crore urban poor and middle-class families will be addressed with an investment of 10 lakh crore rupees.
Government Unveils Ambitious Fiscal Plan and Tax Reforms for Economic Growth
In the next 5 years, there will be central assistance of 2.2 lakh crore rupees. This year, 11,11,111 crore rupees have been allocated for capital expenditure, amounting to 3.4% of the GDP for 2024-2025. Total receipts, excluding borrowings, are estimated at Rs. 32.07 lakh crore, with total expenditure estimated at Rs. 48.21 lakh crore. Net tax receipts are projected to be Rs. 25.83 lakh crore. The fiscal deficit is estimated at 4.9% of the GDP, with a goal to reduce it to below 4.5% next year to aid cancer patients.
Three additional medicines for customs students will be accepted, and the B.C.D. on mobile phones, mobile P.C.B.A., and mobile chargers will be reduced to 15%. Customs duties on 25 critical minerals will be fully accepted, with a reduction in B.C.D. on two of them. Customs duties on gold and silver will be reduced to 6%, and on platinum to 6.4%.
The two tax exemption regimes for charities will be merged into one. The 5% TDS rate on many payments will be consolidated into a 2% TDS rate, and the 20% TDS rate on repurchase of units by mutual funds or UTI will be withdrawn. The TDS rate on e-commerce operators will be reduced from 1% to 0.1%.
Significant simplifications in capital gains taxation are planned. Short-term gains on certain financial assets will now have a tax rate of 20%. Long-term gains on all financial and non-financial assets will have a tax rate of 12.5%.
The Indian startup ecosystem supports entrepreneurship and innovation. To help, I propose to remove the angel tax for all investors. To attract foreign capital, I suggest lowering the corporate tax rate on foreign companies from 40% to 35%.
The security transaction tax on futures and options of securities will be increased to 0.02% and 0.1% respectively. To improve social security benefits, employers’ expenditure towards NPS will be increased from 10% to 14% of the employee’s salary.
For those opting for the new tax regime, I have two announcements. First, the standard deduction for salaried employees will be increased from Rs. 50,000 to Rs. 75,000. Second, the deduction on family pensions for pensioners will be raised from Rs. 15,000 to Rs. 25,000.
With these changes, a salaried employee in the new tax regime can save up to Rs. 17,500 in income tax. I present this budget to the House.
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Budget 2024-25 FAQs :
What are the main focuses of India’s Budget for the fiscal year 2024-25?
India’s Budget for 2024-25 places emphasis on four key areas: Kareem (for the poor), Mahilayan (for women), Yuva (for youth), and Annadaata (for farmers). The government has introduced comprehensive schemes aimed at job creation, skill development, education enhancement, and agricultural support.
How is the Indian government addressing infrastructure development in the budget?
Significant investments have been allocated for infrastructure projects such as power plants, airports, medical colleges, and sports facilities, primarily in Bihar. Additionally, road connectivity projects and the construction of new bridges aim to bolster regional development in states like Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.
What initiatives are outlined in the budget to support women’s development?
The budget allocates over 3 lakh crore rupees towards programs designed to empower women and enhance their economic roles. A specific allocation of 15,000 crore rupees this year is dedicated to initiatives supporting women-led development, with provisions for additional funding in subsequent years.
What tax reforms are proposed in India’s Budget 2024-25?
The budget proposes significant tax reforms including simplifications in capital gains taxation, reductions in customs duties on essential items, and adjustments in TDS rates to streamline compliance for businesses and individuals. Moreover, reforms aim to attract foreign investment by lowering corporate tax rates for foreign companies.
How does the budget plan to manage fiscal deficits and promote economic stability?
The budget estimates a fiscal deficit of 4.9% of GDP, with a strategic goal to reduce it to below 4.5% in the following year. This fiscal prudence aims to ensure economic stability while prioritizing investments in critical sectors like healthcare and social welfare.
What measures are proposed to support small and medium enterprises (SMEs) in the budget?
A new credit guarantee scheme is introduced to facilitate easier access to loans for SMEs seeking funds for machinery and equipment. This scheme mitigates credit risks and offers guarantees up to 100 crore rupees per applicant, aiming to stimulate growth and innovation within the SME sector.
How will the budget impact individual taxpayers opting for the new tax regime?
Individuals under the new tax regime will benefit from increased standard deductions for salaried employees and higher deductions on family pensions for pensioners. These adjustments are expected to reduce tax burdens and enhance disposable incomes for taxpayers opting into the simplified tax structure.
What are the key initiatives proposed to support youth in India’s Budget 2024-25?
The budget outlines a comprehensive package of five schemes targeting 4.1 crore youth for job creation and skill development over the next five years, backed by a substantial allocation of two lakh crore rupees. Additionally, initiatives to skill 20 lakh youth and facilitate higher education loans reflect the government’s commitment to youth empowerment and employment generation.
How does the budget plan to enhance social security benefits for employees?
The budget proposes an increase in employers’ expenditure towards the National Pension Scheme (NPS) from 10% to 14% of the employee’s salary. This measure aims to bolster social security benefits for employees and improve retirement savings in line with economic growth and demographic changes.
What steps are taken in the budget to stimulate investment and economic growth in India?
The budget introduces measures such as the removal of the angel tax for all investors and reductions in customs duties on critical minerals and items like mobile phones. These initiatives are aimed at attracting foreign investment, promoting entrepreneurship, and fostering a conducive environment for economic growth and innovation.
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