Budget 2024 Highlights: With no change in income tax slabs

FM concludes Budget speech –

During her Budget speech, FM Sitharaman says, ‘In 2014, the country was facing enormous challenges. With Sabka Saath, Sabka Vikaas, the Narendra Modi-led government overcame those challenges’

Union Finance Minister Nirmala Sitharaman presented her sixth consecutive Budget on February 1, which was wrapped up in 160 mins, perhaps her shortest speech so far.

Sitharaman rose to present the interim Budget ahead of the 2024 Lok Sabha elections due by May. In her speech, the finance minister highlighted India’s booming economy and announced that the country’s FY25 capital expenditure outlay has been hiked 11.1 percent to Rs 11.11 lakh crore, at 3.4 percent of GDP.

The interim Budget typically allocates funds to keep essential government functions running until the newly elected government presents a full Budget after the election During her speech, Sitharaman also highlighted India’s robust economy. “The Indian economy has witnessed positive transformation in the last 10 years. People are looking towards future with hope. In 2014, the country was facing enormous challenges. With Sabka Saath, Sabka Vikaas, the Narendra Modi-led government overcame those challenges

Here are the key highlights of FM’s Budget 2024 speech

–The Indian economy has witnessed great transformation in the last 10 years

–The country is facing enormous challenges and government overcame those challenges with Sabka Saath Sabka Vishvaas. The fruits of development reached to every strata

–Government focussing on four major goals- Garib, Mahila, Yuva, Annadata

–With the pursuit of Sabka Saath in last 10 years, the government has assisted 25 crore people to get freedom from multidimensional poverty

–Direct benefit transfers has led to savings of Rs 2.7 lakh crore for the government.

–Savings via DBT helped put more funds to PM Garib Kalyan.

–Schemes for empowerment for the divyang reflects our firm resolve to not leave anyone behind.

–Crop insurance has been given to 4 crore farmers under the PM Fasal Bima Yojana. This assists the annadata in producing food for the country and the world.

–1,361 mandis integrated with 3 lakh crore trading volume.

–For welfare of our annadata, every year, under PM Kisan Samman Yojana, direct financial assistance is provided to 11.8 crore farmers. Crop insurance is given to 4 crore farmers under PM Fasal Bima Yojana.

–Skill India Mission has trained 1.4 crore youth, upskilled and reskilled 54 lakh youth, and established 3,000 new ITIs.

–Besides delivering on high growth, the government is equally focussed on a more comprehensive GDP – Governance, Development, and Performance.

–We have macroeconomic stability. Investments are robust. The economy is doing well. All forms of infrastructure – digital, social, physical – are being built in record time.

–GST has enabled one nation, one market, one tax.

–India assumed the G20 Presidency during very difficult times for the world. The pandemic has led to a crisis of food, fertiliser, food, and finances for the world while India successfully navigated its way.

–The next 5 years will be years of unprecedented development and to realise the goal of becoming a developed country by 2047.

–Our government will adopt economic policies that will sustain growth and contribute in powering investment and fulfill aspirations.

–The government will take up next generation reforms and build consensus with the states and stakeholders to ensure effective implementation.

–Our government will pay utmost attention to make the eastern region and its people a powerful driver of growth.

–The government, as announced by Prime Minister Modi, is set to introduce a scheme aimed at assisting deserving sections of the middle class residing in rented houses, slums, chawls, or unauthorised colonies to purchase or construct their own homes.

–Scheme for affordable middle class housing coming soon.

Budget 2024: Key takeaways

Capex target for FY25

— FY25 capex target set at Rs 11.1 lakh crore, up 11.1 percent

Fiscal deficit target for FY25

— FY25 fiscal deficit target set at 5.1 percent of GDP
–FY25 total receipts pegged at Rs 38.80 lakh crore

Market borrowing: 

–Gross Government borrowing at 14.1 lakh core via bonds in FY25
— FY25 gross market borrowing pegged at Rs 14.13 lakh crore, net borrowing at Rs 11.75 lakh crore.
–The gross borrowing target for next year is lower than this year’s budget estimate of Rs 15.43 lakh crore.

Nominal GDP

–Nominal GDP growth assumed at 10.5% for FY25

On income tax

-Do not propose to make any changes in taxation, says FM

–Section 87A of the Income Tax Act offers rebates for individuals with taxable income of as much as Rs 7 lakh, effectively reducing tax liability to zero.

Budget 2024 subsidies: 

–FY25 major subsidies seen at 1.2% of GDP vs 1.4% in FY24
–FY24 food subsidy revised to Rs 2.12 lakh crore from Rs 1.97 lakh crore
–FY25 non-debt capital receipts seen at Rs 79,000 crore

EV boost

–The government will expand and strengthen the EV ecosystem by supporting manufacturing and charging infrastructure.
–To promote green growth a new scheme of bio manufacturing will be launched.

Lakhpati Didi target enhanced

–‘Lakhpati Didi’ scheme, which was initially set at 2 crore women, has been enhanced to 3 crore women.

On Empowerment of women

–Empowerment of women through entrepreneurship gained momentum in last 10 years.
–Female enrolment in higher education has gone up by 28 percent in 10 years.

Vande Bharat push

FM says govt will upgrade 40,000 trains in India to Vande Bharat standars and setup three new railway corridors.

Big numbers out of this Budget:

–Fiscal Deficit at 5.1% of GDP fot FY25
–Fiscal Deficit for FY24 Seen At 5.8% of GDP
–Aim to reduce fiscal deficit to below 4.5% by FY26
–FY25 Capex Outlay at 3.4% of GDP
–FY24 Gross Market Borrowing seen at Rs 14.1 lakh crore
–Pre-FY10 disputed tax demands of upto Rs 25,000 withdrawn
–Target 100 tonne of coal gasification capacity by 2030
–Two crore houses to be build in the next five years

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