Budget 2024 Highlights – In India, businesses and the general people look forward to Budget Day with great anticipation, as they want to know what policies and programs may be of use to them. Nirmala Sitharaman, the Union Finance Minister, unveiled the Union Budget, which is for the upcoming fiscal year (2024 -25). The Budget is an interim one since it’s the final one before the Lok Sabha elections. Read the article below to learn more about Budget 2024 Highlights.
Budget 2024 Highlights
On February 1, Union Finance Minister Nirmala Sitharaman gave a presentation of her sixth budget. In advance of the general elections later this year, this was an interim budget. The Interim Budget 2024 preserved fiscal consolidation and continued capital expenditures while emphasizing the empowerment of women and youth. The FY25 budget deficit objective was cut by FM Sitharaman to 5.1% of GDP.
FM Sitharaman announces steps for the agriculture sector and an 11% increase in infrastructure spending. The budget was unveiled with an emphasis on economic measures that promote expansion, enable equitable development, enhance efficiency, and open doors for different sectors.
Features of Budget 2024 -25
The Interim Budget 2024 preserved fiscal consolidation and continued capital expenditures while emphasizing the empowerment of women and youth. The FY25 budget deficit objective was cut by FM Sitharaman to 5.1% of GDP. The rates of direct tax and indirect tax were left unchanged. Export tariffs, indirect taxes, and direct taxes would continue to be levied at the current rates, as affirmed by Finance Minister Nirmala Sitharaman. She also revealed that the capital expenditure allocation for the next year would increase by 11% to ₹11.1 lakh crore. Sitharaman lowered the budgetary imbalance to 5.8% of the gross domestic product at the federal budget release for the current fiscal year.
A housing program for the worthy middle class was also created by the finance minister; it was targeted at people who were renting, living in chawls, slums, or unapproved colonies. According to Prime Minister Modi, this programme will help them buy or build their own homes. Sitharaman brought attention to the expansion of Ayushman Bharat healthcare coverage to all ASHA and Anganwadi workers and assistance among a plethora of announcements benefiting youth, the destitute, women, and farmers.
Finance Minister @nsitharaman Ji is presenting the Interim Budget in Parliament. https://t.co/j9A9ridX66 — Narendra Modi (@narendramodi) February 1, 2024
Key Highlights of Budget 2024
The following are the main highlights for the Budget 2024
High income tax rates and TDS remains as it is
“As this was a vote on an account budget, we didn’t anticipate any significant change during the meeting. We are excited about the state of the industry in the nation and eagerly await improvements to be disclosed when the entire budget is revealed following the election. Due to ongoing obstacles like high-income tax and TDS rates, both customers and artists have left India. Web3’s future in India has been greatly impacted by this shift. “We have raised these concerns with important stakeholders and we will keep doing so,” stated Dilip Chenoy, Chairman of the Bharat Web3 Association.
Numerous initiatives will support the creation of jobs
The emphasis is still on infrastructure, housing, and inclusive development that meets expectations. With long-term funding and interest-free loans to the states, the budget also significantly boosts innovation and tourism. Given the demographics of India, many of the initiatives will help create jobs, which is crucial.
FM keeps the personal income tax stable
Budget 2024 emphasizes government spending on vital sectors like digital public infrastructure and tourism while preserving stability in personal income tax slabs. The government’s commitment to economic development is demonstrated by the increased budget Capex appropriations, while the tax policies remain consistent and offer paid individuals predictability. While we examine the specific clauses, we continue to concentrate on matching our financial plans to the changing state of the economy. To ensure that both our company and people flourish in this fast-paced climate, we are committed to assisting our staff and taking advantage of the opportunities given by the government’s focused investments in important industries.
Taxpayers are relieved when disputed direct tax demands are waived
As anticipated, the interim budget for FY24–25 establishes a fiscal deficit target of 5.1% of GDP, demonstrating the government’s dedication to fiscal restraint and consolidation. This puts the nation in a position to meet its 4.5% budget deficit goal by FY25–26. Economic development is anticipated to be propelled by a notable 11% increase in capital spending, reaching ₹11.1 lakh crore for FY24–25. Furthermore, taxpayers benefit from the decision to waive contested direct tax requests between ₹10,000 and ₹25,000 until 2009–2010. All things considered, the budget guarantees no unpleasant shocks and sends a sense of continuity.
FM Sitharaman disappoints the salaried class.
Although significant tax rate changes were not anticipated in the interim budget of 2024, taxpayers had high expectations that the government will reduce taxes by expanding the scope of Section 80C deductions or introducing a separate deduction for insurance payments.
Crypto expert on FM’s interim budget
This year, cryptocurrency is seeing a rebirth. Retail activity is rising, the markets are expanding favourably, and global regulatory development is evident. However, the Interim Budget featured restrictions that prohibited the necessary tax modifications for the sector because it was an election year in India.
Positively, the voter fully supports the government of India’s efforts to adopt comprehensive crypto legislation and enhanced tax policies in the upcoming complete budget. We still continue to call on:
- Allow offsetting and carrying forward losses
- Lowering the TDS on VDAs to 0.01% from 1%
- Considering VDA income similarly to that of other capital assets
Promising to see long-term investments
The recently published Union Budget appears to be quite promising in terms of long-term investments and a notable rise in capital spending with projects in the agricultural technology, logistics, and electric vehicle industries. The government is looking at how technology can benefit everyone and is taking adoption and usage across many industries extremely seriously. In addition, a corpus of ₹1 lk cr will be formed with a 50-year interest-free loan for tech-savvy growth.
No significant announcements regarding tax deductions.
The present income tax slabs were preserved in the interim budget with no significant modifications. The new tax regime that was implemented last year is now the default choice, while those who would rather stick with the previous regime can still do so. Expectations were not met as there were no noteworthy announcements about tax exemptions or deductions. With the allocation of 2 crore dwellings under the PMAY-G plan for affordable housing in rural regions, the budget maintained its focus on rural development.
Tax benefits to startups
Nonetheless, on 31.3.2024, several tax breaks for startups, investments made by sovereign wealth or pension funds, and tax exemptions on specific revenue of particular IFSC units will expire. To maintain continuity, FM Sitharaman suggested extending the deadline to 31.3.2025.
Key Highlights
Following are the key highlights of Budget 2024
- For 2023–2024 (FY24), the government’s deficit between its revenue and expenditures is projected to be 5.8% of GDP, or the revised fiscal deficit. A 5.1% GDP fiscal deficit is anticipated for FY25. In 2025–2026 (FY26), the goal is to bring the fiscal deficit down to less than 4.5% of GDP.
- The government has made a significant announcement by agreeing to waive unpaid direct tax claims up to Rs 25,000 for the years 2009–10 and up to Rs 10,000 for the years 2010–11 through 2014–15.
- According to Sitharaman, the number of tax filers increased by 2.4 times. Since 2014, the amount collected in direct taxes has tripled. The estimated tax revenue for 2024–2025 is Rs 26.02 lakh crore.
- The income tax slabs remain unchanged.
- Startups are granted tax breaks through March 31, 2025.
- Three key economic railway corridor initiatives were proposed by the Sitharaman in an attempt to enhance passenger train operations: energy, mineral and cement corridors, port connection corridors, and high traffic density corridors. They will lower costs and increase the effectiveness of logistics. As a result, the congested areas will become less congested, which will enhance passenger train operations and increase travel time and safety for all,” stated Sitharaman. Additionally, this will lower logistical costs.
- Additionally, the finance minister announced the addition of 2 crore homes to the Pradhan Mantri Awas Yojana – Gramin (PMAY-G) program.
- Our tech-savvy children will look back on this as a great age. A 50-year interest-free loan would be given, and a corpus of Rs 1 lakh crore will be built. The corpus will offer long-term funding and long-term refinancing at interest rates that are low or nonexistent. The private sector will be encouraged to greatly increase research and innovation in sunrise domains as a result.
- Additionally, Sitharaman declared that other medical colleges would be established by utilising the “existing hospital infrastructure under various departments.” “A committee will be established for this purpose to investigate the issues and provide pertinent recommendations,”
- Their dignity has been strengthened by outlawing triple talaq, allocating one-third of the seats in the Lok Sabha and state assemblies to women, and providing over seventy percent of the dwellings in rural regions to women under PM Awas Yoajana, according to Sitharaman.
- One crore household will be able to receive up to 300 units of free electricity per month through roof-top solarization.” This plan is in line with the Prime Minister’s determination on the historic day of Shri Ram Mandir’s Ayodhya dedication. By 2070, the government wants to reach “net zero.”
- Long-term interest-free loans to be provided to States to encourage development” to enhance tourism.
- Sitharaman began her address by pointing out that for the past ten years, there has been positive change in the Indian economy.
- “The needs and aspirations of the poor, women, youth, and farmers will steer the country’s growth.”