Union Budget 2024 Highlights: Major Announcements and Changes

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As the curtains rise on the much-anticipated union budget 2024, the spotlight turns to the comprehensive financial blueprint charted out by Finance Minister Nirmala Sitharaman, aiming to bolster India's economic landscape amid evolving global dynamics. The union budget 2024 highlights feature pivotal announcements and transformative changes, underpinned by a commitment to driving GDP growth, managing the fiscal deficit, and ensuring sustainable development across various sectors. This fiscal plan is not just a ledger of tax revenue and expenditures but a vision statement that seeks to balance economic recovery with long-term growth prospects, marking a crucial step towards achieving the nation's ambitions.

Delving into the union budget 2024 highlights, the article unfolds the pivotal announcements across key areas such as infrastructure and development, including crucial sectors like energy, housing, and railways, aligning with India's growth roadmap. It further scrutinizes key tax changes introduced, aiming to optimize tax revenue while providing relief to taxpayers. Policies for social welfare receive especial focus, reflecting the government's intent to weave inclusive growth into the fabric of India's economic policy. The analysis also encompasses plans for boosting agriculture, emphasizing sustainability and resilience, alongside an insightful perspective on the economic outlook and fiscal planning that underpins budgetary allocations. By providing a detailed budget 2024 summary, this article offers a lens to understand the strategic direction set by the government to navigate the complexities of the current economic milieu, ensuring a thorough comprehension of the union budget and its implications for the diverse tapestry of Indian society.

Economic Outlook and Fiscal Planning

In the Economic Outlook and Fiscal Planning for the Union Budget 2024, significant focus is placed on managing the fiscal health of the nation while fostering substantial economic growth.

• Personal Income Tax Adjustments

  The Finance Minister has maintained the status quo on personal income tax rates for FY 2024-25, with no tax liability for individuals earning up to Rs.7 lakh under the new tax regime. Additionally, the standard deduction limit remains unchanged since 2019, although there is speculation about potential increases to stimulate consumer spending.

• Corporate Tax Changes

  Corporate tax rates continue at 22% for existing domestic companies and 15% for certain new manufacturing enterprises. This consistent approach aims to support business stability and growth within the corporate sector.

• Indirect Tax Revisions

  The union budget retains the same customs and import duty rates as the previous fiscal year. Significant amendments in the GST framework include mandatory registration for Input Service Distributors (ISD) and adjustments to the distribution of tax credits, aligning with decisions from the GST Council's 50th Meeting. These changes are intended to streamline tax processes and enhance compliance across sectors.

Infrastructure and Development

• Transport and Logistics

  The Union Budget 2024 has made significant strides in enhancing the transport and logistics infrastructure, with a substantial focus on creating efficient connectivity across the country. One of the major announcements includes the establishment of three key corridors: the port connectivity corridor, energy, mineral, and cement corridor, and high traffic density corridor, which are expected to revolutionize the transportation landscape by facilitating seamless movement of goods and materials. Additionally, the expansion of Metro Rail and Namo Bharat projects to more cities underscores the government's commitment to improving urban mobility. The logistics industry is set to benefit from policy continuity in developing economic railway corridor programmes aimed at boosting rail freight share and reducing carbon emissions.

• Urbanization Efforts

  The government's urbanization efforts are evident in the increased allocation of INR 775.24 billion to the Ministry of Housing and Urban Affairs, which marks a nearly 12-percent increase from the previous year. This funding boost is directed towards critical urban projects such as housing (PMAY-U) and metro rail projects, which together receive about 66 percent of the total funds. Additionally, the expansion of metro rail systems in larger cities and the support for the e-vehicle ecosystem, including the establishment of charging infrastructure, are significant steps towards enhancing urban infrastructure and quality of life.

• Rural Development Schemes

  In rural areas, the government's focus remains strong with an allocation of ₹2,65,808 crore for rural development, which includes substantial funding for schemes like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the Pradhan Mantri Awaas Yojana Gramin (PMAYG). These initiatives are designed to enhance livelihood security and provide housing with basic amenities to the poorer sections of society in rural areas [31]. Moreover, the government plans a substantial increase in rural housing subsidies, aiming to address rural economic distress and boost infrastructure spending.

  These strategic investments in infrastructure development across transport, urbanization, and rural schemes illustrate the government's comprehensive approach to fostering sustainable growth and enhancing the quality of life for its citizens.

Policies for Social Welfare

• Public Health Initiatives

  The Union Budget 2024-25 has significantly increased the allocation for the health sector to ₹90,171 crore, up from ₹79,221 crore in the previous year, emphasizing the importance of healthcare in the national agenda. Key initiatives include the introduction of a cervical cancer vaccination program for girls aged 9-14 to combat this preventable disease and the enhancement of the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, which now includes increased funding from ₹7,200 crore to ₹7,500 crore. Additionally, infrastructure development for healthcare is prioritized, with plans to use existing hospital infrastructures for setting up new medical colleges and a focus on preventive care to improve public health outcomes.

• Educational Reforms

  Significant strides have been made in the educational sector as well, with the National Education Policy 2020 driving transformational reforms. The government has allocated Rs 4,000 crore to upgrade 14,500 schools under the PM Schools for Rising India (PM SHRI) initiative, which aims to reflect components of the new policy. The Skill India Mission continues to make an impact, having trained 1.4 crore youth and established 3,000 new Industrial Training Institutes, enhancing vocational skills across the nation.

• Social Security Programs

  A notable advancement in social welfare is the introduction of a social security fund aimed at providing comprehensive coverage to the labor force in the unorganized sector, including gig and platform workers. This fund, proposed under the Social Security Code 2020, will consolidate existing schemes covering old age, pension, health, and more under a single umbrella, with the government planning to finance it through various sources including CSR contributions and penalties under labor laws. Additionally, the provident fund limit is set to increase from Rs 15,000 to Rs 25,000, expanding the scope of social security for more citizens.

Conclusion

The Union Budget 2024 highlights presented by Finance Minister Nirmala Sitharaman mark a pivotal step towards India's progressive economic landscape, addressing the critical areas of infrastructural development, tax recalibration, and fiscal planning alongside emphasizing social welfare and sustainable development. Through strategic investments in infrastructure, both in urban and rural setups, coupled with prudent fiscal strategies aimed at fueling economic growth amidst managing the fiscal deficit, the budget lays down a comprehensive roadmap for India's journey towards an inclusive and prosperous future. Additionally, the unwavering focus on public health, education reforms, and social security reinforces the government's commitment to fostering a resilient and inclusive society.ere.

As we contemplate the impactful steps taken in this budget towards shaping the future of India's economy, it becomes imperative for investors to recognize and align with the transformative changes unfolding across the country. For those looking to explore investment opportunities in the changing economic landscape, checking our latest projects in Dubai, Ayodhya, and Almora could open new avenues for investment purpose, promising not only returns but also a chance to be part of India's growth narrative. The Union Budget 2024 thus serves as a beacon of India's resilience and ambition, laying down a pathway for sustainable development, economic prosperity, and a more inclusive future for all its citizens.

FAQ

1. What are the key features of the Union Budget 2024?The Union Budget 2024, termed as the roadmap for "Viksit Bharat 2047", focuses on significant enhancements across various types of infrastructure including physical, digital, and social sectors. The Digital Public Infrastructure (DPI) initiative aims to promote formalization and financial inclusion. Additionally, there is an emphasis on broadening and deepening the tax base through the Goods and Services Tax (GST).

2. Can you outline the financial projections and expectations from the Interim Union Budget 2024-25?

3. What should we anticipate from the Union Budget 2024 presentation?

4. Are there any changes to the income tax slabs in the 2024 budget?

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