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Indian National Budget 2024 Highlights

Budget 2024 prioritizes social welfare and infrastructure development. While details are still emerging, key highlights include increased spending on rural development schemes, education, and healthcare. Measures to promote clean energy and green infrastructure suggest a focus on sustainability.

Tax breaks for specific sectors or income brackets are also anticipated. The success of the budget hinges on its ability to stimulate economic growth while ensuring social inclusion.

The income tax refund is the one aspect of the budget that the salaried class looks forward to. On February 1, 2024, Finance Minister Nirmala Sitharaman presented the Interim Budget 2024, maintaining the same tax slab rates for the old and new income tax regimes in the Budget 2024 Highlights.

On Thursday, February 1, 2024, Sitharaman made her budget address. “Keeping with the convention, I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes, including import duties,” she stated.

Budget 2024 Highlights

Experts predict that the benefits of such concentrated and ongoing efforts will trickle down to the real estate segments, particularly in Tier II and Tier III cities, at a total cost of 3.4 per cent of GDP.

In her budget presentation today, February 1, Finance Minister Nirmala Sitharaman announced significant infrastructure allocations related to the expansion of current airports and railway corridors. Real estate experts predict that these declarations will result in increased real estate activity, especially in tier II and III cities.

The FM announced the expansion of current airports under the UDAN plan and the implementation of three key railway corridor programs under PM Gati Shakti when he presented the interim budget on Thursday. Additionally, the government increased its capital expenditure (capex) budget to Rs 11.11 trillion for the fiscal year that begins on April 1, 2024.

However, the interim budget did not specifically target Tier II and III cities, experts believe that the Gati Shakti initiative, introduced earlier, and the budget’s emphasis on infrastructure and technology could increase the value of real estate in these areas.

Empowerment for every section of society

In keeping with the goal of “Viksit Bharat,” the Interim Budget 2024 lays the groundwork for the development of a prosperous and inclusive India. We share the belief that all segments of society should be empowered, but especially the “Garib,” “Mahilayen,” “Yuva,” and “Annadata.” Their growth is linked to the country’s progress, therefore it’s encouraging to see the government giving priority to their needs and goals “said Nadir Godrej, the chairman and MD of Godrej Industries Ltd.

Budget elucidates the government’s intention to promote growth through inclusive policies.
Although there aren’t many noteworthy announcements in this budget, it is clear that the administration wants to encourage growth through inclusive policies. In this way, if the government is re-elected, one should anticipate continuity.

The roadmap presented by the Finance Minister (FM) to reach the 4.5% budget deficit to GDP objective by FY26 is another attractive feature. In regard to this, the FY25 5.1% aim is a big step in the right direction toward reaching the 4.5% objective. The FM is still in charge of overseeing capital expenditures at the same time.YES Bank’s chief economist, Indranil Pan.

The budget is very bold, very inclusive, very pragmatic Kamal Bali, President and MD of Volvo Group India, comments on the Interim Budget 2024–25: “I think the Budget is very bold, very inclusive, very pragmatic and touching all sectors of the economy & all sections of society.

Thus, in light of that and the fact that it was an interim budget, I believe the FM executed brilliantly. Bold, I say, because it genuinely looks at the fiscal deficit, which is projected to be 5.8% this year rather than 5.9% in the previous budget, which is better. This has been estimated to be 5.1% rather than 5.4% for the upcoming year. Therefore, in my opinion, that is a highly responsible and daring move. That will aid in controlling inflation. So, that is something very good…”

Budget 2024 can positively impact a startup’s economy

Regarding the Union Budget 2024, Kunal Bahl, the former CEO of Snapdeal, said, “While it was an interim budget, there were a couple of very important announcements that can positively impact a startup’s economy.”

Budget 2024 lowers fertiliser subsidy allocation by 13% to Rs 1.64 crore

According to the updated projections, the amount allotted for the fertiliser subsidy for the current fiscal year FY24 has climbed to Rs 1.89 lakh crore.

The amount allotted for fertiliser subsidies in the Interim Budget by Finance Minister Nirmala Sitharaman has been reduced by 13% to Rs 1.64 lakh crore for 2024–25, from the revised budget projection of Rs 1.89 lakh crore for FY24.

Budgeted for FY24, the amount for fertiliser subsidies was Rs 1.75 lakh crore.

The government offers urea and fertilizer subsidies based on nutrients. Factors contributing to the FY25 subsidy reduction include declining global prices, government initiatives promoting the use of organic and biofertilizers, and growing usage of nano urea.

Of the entire amount of fertilizer used, 55–60% comes from urea, which is produced both domestically and through imports. The urea subsidy system guarantees farmers an ongoing supply of urea at a fixed price of Rs 242 per 45-kg bag, exclusive of taxes and neem coating fees. The bag costs about Rs 2,200.

The budget will elevate India’s logistics and infrastructure landscape

The preparation of the Interim Budget 2024–25 is distinctly focused on accordant economic railway corridors under the PM Gati Shakti initiative, the budget has appropriately given a boost to multi-modal connectivity with a significant increase in infrastructure outlay. These steps will significantly save costs and increase the effectiveness of logistics.

No change on the taxation front

As usual, the government has not made any significant announcements in an interim budget, therefore there has been no change on the tax front, and any revisions will need to wait until the full budget. The extra INR 1.1 trillion in capital expenditures, bringing the total to INR 11.1 trillion, should maintain the current rate of infrastructural development and gradually reduce the nation’s logistical costs, according to Ranen Banerjee, Partner and Leader of Economic Advisory at PwC India.

India National Interim Budget 2024 Highlights

CategoryKey MeasureDescription
Social WelfareTax ReliefMaintained existing tax rates, with individuals earning up to Rs. 7 lakh exempt under the new tax regime.
Social WelfareIncreased AllocationIncreased funding for MNREGS and Ayushman Bharat to support rural development and healthcare access.
InfrastructureCapital Expenditure HikeIncreased capital expenditure by 11.1% to accelerate infrastructure projects.
InfrastructureGreen FocusInitiatives like National Green Hydrogen Mission and increased solar power spending promote sustainable development.
Fiscal ConsolidationDeficit TargetAims to reduce budget deficit to 5.1% of GDP, indicating focus on fiscal responsibility.
Table: India National Budget 2024

Key Budget 2024 Highlights

The Union Budget 2024, presented in February 2024, focused on boosting social welfare programs and infrastructure development. Here are some key Budget 2024 Highlights:

Focus on Social Welfare

  • Tax Relief: The government maintained existing tax rates, providing some relief for taxpayers. Individuals earning up to Rs. 7 lakh remain exempt under the new tax regime.
  • Increased Allocation: Schemes like Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) and Ayushman Bharat received significant funding boosts to support rural development and healthcare access.

Infrastructure Push

  • Capital Expenditure Hike: A significant increase (11.1%) in capital expenditure aims to accelerate infrastructure projects across the country.
  • Green Focus: Initiatives like the National Green Hydrogen Mission and increased spending on solar power indicate a commitment to sustainable development.

Fiscal Consolidation

  • Deficit Target: The government aims to reduce the budget deficit to 5.1% of GDP, indicating a focus on fiscal responsibility.

The Budget 2024 Highlights social welfare and infrastructure development while aiming to maintain fiscal discipline. Whether these measures will effectively stimulate the economy remains to be seen.

Abhinay Parmar

Thakur Abhinay Parmar explores tech, explaining gadgets, software, and innovations, helping readers navigate the digital world's changes and stay up-to-date with the latest advancements.

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