14 Key Highlights of Union Budget 2024 | India

14 Key Highlights of Union Budget 2024 India – Budget Highlights for 2024: Earlier today, Minister of Finance Nirmala Sitharaman presented the Interim Union Budget for the fiscal year 2024-25 to the Parliament. The current finance minister has presented six budgets, the final of the second term of the administration led by Prime Minister Narendra Modi.
Railways, green growth, fiscal consolidation, and infrastructure were the main focuses of the budget. Unfortunately for those who rely on salaries, no adjustments were made to the tax rates.

Surprisingly, the Fiscal Deficit target for FY25 was set at 5.1% of GDP, whereas the target for FY24 was lowered down to 5.8%. A 11.1 percent rise brought the capex target for FY25 to ₹11.1 lakh crore.
There has been a substantial improvement in India’s economic situation within the recent decade. With optimism, people are looking ahead to what the future holds. Massive difficulties beset the nation in 2014. Finance Minister Sitharaman stated in her budget address that the Narendra Modi-led government was able to overcome those problems with Sabka Saath, Sabka Vikaas.

According to Sitharaman, the government aims to become a developed nation by 2047, and the following five years would be a time of unparalleled progress. She further stated that the “trinity of democracy, demography and diversity can fulfil aspirations of every Indian” .
This budget, according to experts, also met their expectations.
Foreign investors may be pleased to hear that the FM has maintained its focus on domestic macro factors, such as investments in infrastructure, agriculture, and domestic tourism, and on fiscal responsibility, with a lower deficit. This could be good news for the $25 billion in bonds that will be issued in June, as reduced borrowing and budget deficits will lead to lower yields. Pradeep Gupta, Co-founder and Vice-chairman of the Anand Rathi Group, stated that it may pave the way for an improvement in ratings.

14 Key Highlights of Union Budget 2014 | India

Key Highlights of Union Budget 2024 – India

Infrastructure, tourism, logistics, and research innovation are the main features of the budget. The economy will see steady and sustainable growth as a result of all these actions. According to Gupta, this demonstrates the current administration’s persistence in its goal of achieving fiscal discipline and a deficit of 4.5% of GDP by FY26.
Among the 14 most important aspects of the 2024 budget are the following: income tax; renewable energy; and tourism.

1. Income Tax

“…I do not propose any changes in tax rates in direct and indirect taxes, including import duties,” Sitharaman stated during her Budget speech.
While the tax system remained unchanged in this budget, the finance minister did report a doubling of tax revenues over the past decade. The average time it takes to complete tax returns was lowered to 10 days this year, she added.
Tax revenues have doubled in the last decade, which the finance minister says is a major achievement. It is worth mentioning that the current budget does not alter anything regarding direct or indirect taxes, including import charges. Based on the comments made by Siddhesh Mehta, Research Analyst at Samco Securities, businesses may discover this stability useful when arranging their financial plans, leading to a safer and longer-lasting company climate.

2. Infrastructure Development

The finance minister proposed an 11.1 percent rise to 11.11 lakh crore for the upcoming year, building on the previous four years’ dramatic tripling of the capital spending outlay, which had a major multiplier effect on economic growth and job creation. The gross domestic product is 3.4% of this.

3. Railways

FM Trains The conversion of forty thousand standard train bogies to Vande Bharat, which Sitharaman stated, will improve passenger safety, convenience, and comfort. More cities would be included in the expansion of important rail infrastructure projects like Metro Rail and Namo Bharat.
There were also announcements of three significant railway corridors: the high traffic density corridor, the energy, mineral, and cement corridor, and the port connectivity corridor.
Improved passenger train operations due to reduced congestion along high-traffic corridors mean faster travel times and more security for rail passengers.
These three economic corridor programs, along with dedicated goods lanes, would lower logistic costs and accelerate our GDP growth, according to Sitharaman.
The success of the Vande Bharat trains prompted the FM to announce the conversion of about 40,000 more rail bogies to Vande Bharat coaches. Sanjay Moorjani, a research analyst with SAMCO Securities, predicted that this will increase employment opportunities, save travel time, and boost tourism nationwide.
Development of economic rail corridors tailored to certain commodities helps alleviate line congestion, according to CRISIL, which is particularly noticeable in the country’s eastern regions. In addition to facilitating quicker goods movement and turnaround times, this should assist bring India’s logistics cost down from 12% of GDP, making the country more competitive overall and in the manufacturing sector in particular.

4. The “Lakhpati Didi” Scheme

Eighty-three million self-help groups (SHGs), comprising nine crore women, are empowering and self-reliantly changing the socio-economic landscape of rural areas, according to FM. Nearly one crore women have already become ‘Lakhpati Didi’ thanks to their achievement. The success of the Lakhpati Didi Scheme has led to an increase in the target from 2 crore to 3 crore. The programme has reached 83 lakh self-help groups and benefited 9 crore women, achieving its goal of empowering 2 crore women in rural. This programme is expected to greatly improve the economic situation of rural women by injecting ₹1 lakh per home for one crore recipients. Veer Trivedi, Research Analyst at SAMCO Securities, stated that this empowerment has the dual benefit of boosting the rural economy and increasing the demand for micro-finance loans, especially from women and self-help organisations. This, in turn, could alleviate some of the pressure on asset quality concerns.

5. Electricity

Ten million homes will be able to get 300 units of free power per month through rooftop solarization. This plan was announced by FM Nirmala Sitharaman in response to the prime minister’s announcement on the historic occasion of the consecration of Shri Ram Mandir in Ayodhya. Sitharaman pointed out that homeowners can save as much as ₹15,000–18,000 per year by taking advantage of free solar electricity and selling any excess to distribution providers.

6. Green Energy

The following actions will be taken to reach the goal of “net zero” by the year 2070.
a. One gigawatt of primary capacity will be available for use with viability gap financing for offshore wind generation.
The goal is to have a 100 MT capacity for gasification and liquefaction of coal in place by 2030. Natural gas, methanol, and ammonia imports can be decreased using this as well.

7. Electric Vehicles

According to the finance minister, the government would back electric vehicle (EV) production and charging infrastructure in order to enhance and broaden the ecosystem. She went on to say that payment security methods will encourage more people to utilise e-buses for public transport networks.
The shortage of public charging stations is a major obstacle to the adoption of electric and hybrid vehicles. The Indian government’s 2024-25 Union Budget takes a proactive approach to this problem, with 6,586 stations registered by March 2023. With a strong emphasis on increasing the availability of charging stations, it seeks to encourage and greatly broaden the electric vehicle ecosystem. Electric vehicles are poised to revolutionise India’s transport scene, alleviate concerns about their limited range, and pave the way for a more sustainable future, according to Kartik Narayan, CEO of Staffing, TeamLease Services.

Key Highlights of Union Budget 2024 – India

8. Tourism

On a worldwide scale, Tourism FM declared that states will be urged to take up complete development of the branding and marketing of major tourist centres. The standard of the facilities and services will be used to create a grading system. To help pay for these improvements, states will have access to long-term, interest-free loans. Lakshadweep is one of our islands that will be the site of upcoming projects to improve port connection, tourist infrastructure, and amenities. Additionally, this would contribute to the creation of jobs, according to FM Sitharaman.

9. Promoting Investments

Foreign direct investment (FDI) hit a record high of $596 billion between 2014 and 2023. From 2005 to 2014, the inflow was double that amount. In keeping with the principle of “first develop India,” the government is claimed to be negotiating bilateral investment treaties with international partners to encourage sustained foreign investment, as mentioned by the FM in her speech.

10. Technology

People’s and companies’ daily lives are being transformed by cutting-edge data and technology. In addition to opening up new avenues for economic growth, they are making it easier to provide everyone, even those at the “bottom of the pyramid,” access to affordable, high-quality services.
She declared the establishment of a rupee one lakh crore corpus, funded by an interest-free loan for fifty years. Borrowing or refinancing for extended periods at low or free interest will be possible through the corpus. Because of this, businesses will be more motivated to invest heavily in sunrise domain research and innovation.

14 Key Highlights of Union Budget 2024 – India

11. Ayushman Bharat

All Anganwadi and Asha workers would be covered by Ayushman Bharat, according to Finance Minister Sitharaman’s announcement. Additionally, she mentioned that there will be a consolidation of all healthcare programmes for mothers and children into one comprehensive plan.

12. PM Awas Yojana

The PM Awas Yojana (Grameen) program has persisted despite the COVID-19 setbacks, and the government is almost at its three crore housing goal. To accommodate the demand caused by the rise in the number of families, Sitharaman said that two crore additional dwellings will be built over the next five years.
The goal of the Pradhan Mantri Awas Yojana (Urban) Mission, which was launched on June 25, 2015, is to provide homes for everyone. According to the finance minister, who announced in a speech, the government is getting closer to its objective of building 3 crore pucca dwellings by March 2024. An extra strategy to construct 2 crores of additional homes in the coming five years shows continued dedication. Veer Trivedi, Research Analyst at SAMCO Securities, predicted that the construction industry would see increased investment and activity as a result of the renewed emphasis on PMAY. This, in turn, would have a multiplier effect on the housing finance, cement, steel, and paints industries, resulting in a positive impact across several sectors.

13. MSME

It will be crucial for policymakers to prioritize training micro, small, and medium-sized enterprises (MSMEs) so they can compete on a global scale. According to FM Sitharaman, the government would have the banking sector ready to satisfy investment needs.
An important step towards strengthening the PLI and Make in India programs is the Skill India Mission’s aim to teach 1.4 crore young individuals, upskill 54 lakh youngsters, and construct 3,000 new Industrial Training Institutes (ITIs). The CEO of Staffing at TeamLease Services, Kartik Narayan, stated that an all-encompassing strategy is necessary to increase manufacturing’s GDP contribution from 17% to 25% by 2047, which will lead to the creation of many new jobs.

14. Agriculture and Food Processing

FM has announced a redoubling of efforts to increase farmers’ incomes and add value to the agricultural sector. A total of 38 lakh farmers have reaped the benefits of the Pradhan Mantri Kisan Sampada Yojana, which has also created 10 lakh jobs. Micro Food Processing Enterprises’ Pradhan Mantri Formalisation More than 2.4 lakh SHGs and 60,000 individuals have benefited from Yojana’s loan linkages. In addition to initiatives to increase production and incomes and decrease postharvest losses, other plans are being implemented.

Key Highlights of Union Budget 2024 – India

The budget deficit and other critical statistics

Aim for a budget deficit of 5.1% of GDP in FY25.
The original goal for the budget deficit in FY24 was 5.9% of GDP, however, it was reduced to 5.8%.
Up until December, the fiscal deficit for the first nine months of FY24 was ₹9.82 lakh crore, which is 55% of the annual estimates.
₹11.1 lakh crore, an increase of 11.1 percent, is planned as the capital expenditure for FY25.
The projected spending for FY25 is ₹30.80 lakh crore. For FY24, the overall spending has been revised to ₹44.90 lakh crore.
A The strong growth momentum and formalization in the economy are anticipated to cause the revenue revenues for FY24, estimated at ₹30.03 lakh crore, to surpass the Budget estimate.
The estimated gross market borrowing for FY25 is ₹14.13 lakh crore, with the net borrowing coming to ₹11.75 lakh crore.
Aiming for gross tax receipts of ₹26.02 lakh crore in FY25.

14 Key Highlights of Union Budget 2024 | India