Union Budget 2024: Comprehensive Highlights and Impact
The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, marks a significant step towards bolstering India’s economic and social landscape. With a clear focus on employment, skilling, education, and financial support, this budget aims to create ample opportunities for various sectors while addressing the needs of the middle class, MSMEs, and rural areas. Let’s dive into the key highlights and implications of the 2024 Union Budget.
Employment and Skilling
A notable allocation of ₹1.48 lakh crore has been dedicated to education, employment, and skill development. The budget introduces five schemes targeting 4.1 crore youth over five years, with a central outlay of ₹2 lakh crore. This includes a comprehensive internship scheme for one crore youth in top companies and employment-linked incentives like one month’s wage support for first-time employees. Additionally, women-specific skilling programs aim to increase workforce participation, ensuring a more inclusive growth environment.
Education and Skill Development
The budget’s emphasis on education is evident with the substantial allocation for educational initiatives. However, funding for education schemes targeting madrasas and minorities has seen a decrease from ₹10 crore to ₹2 crore. Despite this, the focus on skill development remains strong, with initiatives designed to equip the younger generation with relevant skills for the evolving job market.
Tax Reforms
One of the significant announcements in the budget is the revised tax rates under the new regime. The standard deduction for salaried employees has been increased to ₹75,000 from ₹50,000. The new tax regime features progressive rates, starting from nil for income up to ₹3 lakh and going up to 30% for income above ₹15 lakh. These changes aim to simplify the tax structure and provide relief to taxpayers.
MSME and Manufacturing Support
Recognizing the critical role of MSMEs in the economy, the budget introduces several supportive measures. The credit guarantee scheme and term loans for machinery purchase are designed to enhance the operational capabilities of MSMEs. Additionally, SIDBI will open 24 new branches to serve MSME clusters, providing much-needed financial and technical support.
Financial Initiatives
The Mudra loan limit has been increased from ₹10 lakh to ₹20 lakh for previous borrowers, offering greater financial flexibility. Higher education loans up to ₹10 lakhs in domestic institutions will receive financial support, making higher education more accessible. Furthermore, the integrated technology system for the Insolvency and Bankruptcy Code (IBC) aims to streamline and enhance the insolvency resolution process.
Agriculture and Rural Development
The budget provisions ₹2.66 lakh crore for rural development, emphasizing the transformation of agricultural research to focus on productivity and climate-resilient crop varieties. An initiative to introduce one crore farmers to natural farming over two years underscores the government’s commitment to sustainable agricultural practices.
Infrastructure and Regional Development
Infrastructure development remains a priority, with significant investments in rental housing for industrial workers and special financial support of ₹15,000 crore for Andhra Pradesh. Bihar will benefit from new airports, medical facilities, and sports infrastructure, highlighting the budget’s regional development focus.
Economic Outlook
With inflation moving towards the 4% target, India’s economic growth is portrayed as a “shining exception.” The budget’s focus on job creation and boosting consumption is expected to benefit sectors such as consumer goods, real estate, and automotive industries.
Women-Led Development
Over ₹3 lakh crore has been allocated for schemes benefiting women and girls, emphasizing the government’s commitment to empowering women in various sectors. This allocation aims to enhance the participation of women in the workforce and support their overall development.
Social Welfare
The extension of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for five years will benefit over 80 crore people, providing essential food security. This initiative highlights the budget’s focus on social welfare and support for the underprivileged.
Digital and Technological Advancements
The development of Digital Public Infrastructure (DPI) applications for credit, e-commerce, law and justice, and corporate governance marks a significant step towards leveraging technology for public benefit. These advancements are expected to streamline various processes and enhance efficiency across sectors.
International Relations
India-funded projects in neighboring countries have received substantial allocations, with Nepal securing ₹700 crore and Sri Lanka ₹245 crore. These investments aim to strengthen India’s ties with its neighbors and support regional development.
Market Reactions
The budget’s impact on the stock market was mixed, with the Sensex and Nifty settling marginally lower in volatile trade. The proposed hike in securities transaction tax on futures and options contributed to market fluctuations. Sector-specific reactions highlight the diverse impact of the budget across industries.
Conclusion
The Union Budget 2024 sets a clear path for India’s economic growth and social development. With a focus on employment, education, financial support, and infrastructure, the budget addresses the needs of various sectors and demographics. As the government continues to implement these initiatives, the long-term impact on India’s economy and society will unfold.
FAQs
What are the main highlights of the 2024 budget? The main highlights include significant allocations for employment, skilling, education, tax reforms, support for MSMEs, rural development, and infrastructure projects.
How will the new tax regime affect salaried employees? The new tax regime features revised tax rates and an increased standard deduction, providing relief and simplifying the tax structure for salaried employees.
What support is provided for MSMEs in the 2024 budget? The budget introduces a credit guarantee scheme, term loans for machinery purchase, and expanded support from SIDBI to enhance the operational capabilities of MSMEs.
How does the budget impact the agricultural sector? Provisions for rural development, transformation of agricultural research, and initiatives for natural farming highlight the budget’s commitment to sustainable agriculture.
What are the major digital advancements announced in the budget? The development of Digital Public Infrastructure (DPI) applications aims to enhance credit, e-commerce, law and justice, and corporate governance processes through technology.