Key highlights of Budget 2024 presented by Finance Minister Nirmala Sitharaman

The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman on July 23, 2024, marks her seventh consecutive budget presentation and is the first for the BJP-led NDA government in its third term.

Key Highlights of Budget 2024

Fiscal Targets and Expenditure

• Fiscal Deficit: The fiscal deficit for FY 2024-25 is targeted at 5.1% of GDP, with a commitment to reduce it to 4.5% by FY 2025-26.

• Total Expenditure: Projected at ₹48.21 trillion, with a capital expenditure outlay of ₹11.11 trillion, reflecting an 11% increase from the previous fiscal year.

• Total Receipts: Estimated at ₹32.07 trillion, excluding borrowings.

Tax Reforms

• Income Tax Slabs: The tax structure has been revised, with new rates designed to provide savings of up to ₹17,500 for taxpayers. The revised slabs are:

  • ₹0-3 lakh: 0%

  • ₹3-7 lakh: 5%

  • ₹7-10 lakh: 10%

  • ₹10-12 lakh: 15%

  • ₹12-15 lakh: 20%

  • Above ₹15 lakh: 30%

• Standard Deduction: Increased from ₹30,000 to ₹75,000 under the new tax regime.

• Capital Gains Tax:

  • Short-term capital gains tax on specified financial assets increased from 15% to 20%.

  • Long-term capital gains tax raised from 10% to 12.5%.

  • Exemption limit on capital gains for certain listed financial assets increased from ₹1 lakh to ₹1.25 lakh annually.

• Angel Tax: Abolished for all investor classes to support start-ups.

Social and Infrastructure Initiatives

• Housing: ₹10 trillion allocated for the construction of 1 crore houses for the urban poor and middle class.

• Employment Schemes: Introduction of three new employment-linked schemes with a total allocation of ₹2 trillion, targeting skill development for 20 lakh youth and promoting women's participation in the workforce.

• Education and Skill Development: An allocation of ₹1.48 lakh crore for education, employment, and skill development.

• Agriculture: ₹1.52 trillion allocated for agriculture and allied sectors, promoting natural farming and self-sufficiency in pulses and oilseeds.

• Tourism and Infrastructure: Interest-free loans for states to develop tourism and enhance air connectivity with 517 new routes under the Udan Scheme.

Sector-Specific Allocations

• Railways: ₹2.4 lakh crore allocated, with plans for three major economic railway corridors under the PM Gati Shakti initiative.

• Customs Duties:

  • Reduced duties on gold, silver, and platinum.

  • Exemption of customs duties on certain cancer medicines and reduced duties on mobile devices.

• Support for States: Significant financial assistance announced for infrastructure development in Andhra Pradesh and Bihar, including ₹26,000 crore for roads and expressways in Bihar.

Strategic PrioritiesSitharaman outlined nine strategic priorities for the budget, focusing on:

• Productivity and resilience in agriculture

• Employment and skilling

• Inclusive human resource development

• Support for MSMEs

• Urban development

• Energy security

• Infrastructure development

• Innovation and research

This budget aims to address the economic challenges while fostering growth and inclusivity, reflecting the government's commitment to its electoral promises and the aspirations of the Indian populace.