Union Finance Minister Nirmala Sitharaman made history by presenting the Union Budget for the seventh consecutive time. This budget is notable as it represents the first full Budget of the Modi government’s third term, covering the fiscal year 2024-25 from April 1, 2024, to March 31, 2025.
In alignment with its Viksit Bharat 2047 vision, the budget promises support for critical sectors of the Indian economy, with a particular focus on employment, skilling, MSMEs, and the middle class. The Finance Minister highlighted the government’s commitment to four key groups: the poor, youth, women, and farmers.
Key Aspects, Announcements, and Highlights of Budget 2024:
Key Highlights
- Fiscal deficit estimated at 4.9% of GDP for FY25.
- Capex target set at ₹11.11 lakh crore, representing 3.4% of GDP.
- Total government receipts estimated at ₹32.07 lakh crore, with total expenditure projected at ₹48.21 lakh crore.
- Over ₹3 lakh crore allocated to schemes related to women.
- PMAY Urban 2.0 launched with an investment of ₹10 lakh crore to address housing needs for one crore urban poor and middle class.
Budget and Stock Market
The Securities Transaction Tax (STT) on futures will increase from 0.0125% to 0.02%, and on options from 0.0625% to 0.10%. Long-term capital gains (LTCG) tax will rise to 12.5% from the previous 10%, with the exemption limit increased from ₹1 lakh to ₹1.25 lakh. Customs duty on gold and silver reduced from 10% to 6%.
Taxation
The standard deduction for salaried individuals increased from ₹50,000 to ₹75,000.
In a big relief to startups, the government announced the abolition of the angel tax across all categories.
PM Package: 5 Schemes for Employment and Skilling:
- Significant boost to job creation with the PM Package, including an outlay of Rs 2 lakh crore to create 4.1 crore jobs over the next five years.
- Introduction of an Employment Linked Incentive (ELI) with three schemes.
- Provision of internships for one crore youths in top 500 companies.
- Initiatives to increase women’s workforce participation, including building working hostels and women-specific skilling programmes.
Credit Guarantee Scheme for MSMEs
A self-financing guarantee fund will offer coverage up to Rs 100 crore per applicant, regardless of loan amount.
MUDRA loan limit has been increased from Rs 10 lakh to Rs 20 lakh.
Agriculture Receives ₹1.52 Lakh Crore
- Rs 1.52 lakh crore allocated to the agriculture sector.
- Increase in Minimum Support Price for all major crops to be at least 50% above input costs.
- Extension of PM Garib Kalyan Anna Yojana for free rations to 80 crore people for another five years.
- The government aims to cover over one crore farmers under organic farming over the next two years.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*This article is for informational purposes only. This is not investment advice.
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