Budget 2024 Highlights: Tax Slab Changes, Bonanza For Andhra & Bihar, Employment For GenZ And More
Here are the top highlights from Finance Minister Nirmala Sitharaman's Union Budget 2024 presentation in the Lok Sabha.
Finance Minister Nirmala Sitharaman delivered her seventh consecutive Budget on Tuesday, marking a crucial milestone for the Modi 3.0 administration. There have been a slew of announcements and scheme to focus on employment, skilling, middle class and small businesses.
As expected there has been focus on the states of Bihar and Andhra Pradesh. The Finance Minister also announced new employment schemes, especially for first time job seekers.
Key Highlights Of Union Budget 2024-25
Nine Priorities In Budget 2024
Productivity and resilience in agriculture.
Employment and skilling.
Improved human resources, social justice.
Manufacturing and services.
Urban development.
Energy security.
Infrastructure.
Innovation, research and development.
Next-generation reforms.
Three Key Schemes for Employment Generation
Scheme for first-timers to provide one-month wage to all persons newly entering workforce in all sectors.
Schemes for employment, skilling worth Rs 2 lakh crore.
First-time employment scheme to benefit 21 crore youths.
Cover Additional Employment In All Sectors
All employment within salary of Rs 1 lakh per month to be counted
The government to reimburse to employers Rs 3,000 per month towards Employees' Provident Fund Organisation contribution for two years for each additional employee.
Announcement For Andhra Pradesh, Bihar
Recognising Andhra Pradesh's need for capital, to facilitate support through multilateral development agencies.
Rs 15,000 crore to be arranged for Andhra Pradesh in the current financial year for development of capital.
Bihar's Patna to get Purnia expressway, Buxar-Bhagalpur expressway, Bodhgaya-Rajgir-Vaishali-Darbhanga and additional two-lane bridge over the Ganga at Buxar at Rs. 26,000 crore.
MSMEs (Smaller Businesses)
Allocation of over Rs 3 lakh crore made for schemes benefiting women development
Made provision of Rs 2.66 lakh crore for rural development, including rural infra.
Credit guarantee scheme for the micro, small and medium enterprises in manufacturing to be introduced.
Credit-guarantee scheme for the MSMEs to operate on pooling of credit risks.
New mechanism for a continuation of bank credit to the MSMEs during stressed periods to be introduced.
Credit availability for the MSMEs during stressed period to be provided through from government-promoted fund.
The Small Industries Development Bank of India to open new branches to serve more MSMEs over three years. The SIDBI to open 24 new branches in FY25
Urban Housing
Framework for policies to facilitate creative brownfield redevelopment of cities to be set up.
PM Awaas Yojana–Urban 2.0 to cater to 1 crore urban poor with an investment of Rs 10 lakh crore.
PM Awaas Yojana–Urban 2.0 to have central assistance of Rs 2.2 lakh crore over the next five years.
Transit-oriented development programmes for 14 large cities with population above 30 lakh will be formulated.
Energy Sector
FY25 allocation towards capex set at Rs 11.1 lakh crore.
PM Surya Ghar Muft Bijli scheme will install rooftop solar plants for 1 crore households.
PM Surya Ghar Muft Bijli got 1.28 crore registrations, 14 lakh applications.
Government to partner with the private sector to set up Bharat Small Reactors.
Joint venture between NTPC and BHEL to set up a full-scale 800 MW commercial plant using AUSC technology.
Government to provide required fiscal support for NTPC, BHEL joint venture.
Key Points For Tourism
Government to support the development of Nalanda as a tourism destination.
Comprehensive development of the Vishnupad temple corridor and Mahabodhi temple corridor will be supported.
Government to provide support to Odisha for development of tourism destinations.
Budget 2024: Government Announces Measures To Boost Religious Tourism, Focus On Bihar, Odisha
New Tax Regime: Tax Slabs To Be Changed
Income of Rs 0-3 lakh to be taxed at 0%;
Rs 3-7 lakh at 5%;
Rs 7-10 lakh at 10%;
Rs 10-12 lakh at 15%;
Rs 12-15 lakh at 20%, and
Above Rs 15 lakh 30%.
Deduction of expenditure of employers towards NPS to be raised to 14% from 10% of salary.
Deduction of expenditure up to 14% of salary from income to be provided New Tax Regime.
More Tax Announcements
To abolish angel tax for all classes of investors.
To reduce corporate tax rate on foreign companies to 35% from 40%.
STT on futures and options to be raised to 0.02% and 0.1% respectively.
To tax income received on the buyback of shares in the hands of recipients.
The finance minister also announced financial support in the form of loans up to Rs 10 lakh for higher education in domestic institutions. E-vouchers for this purpose will be given directly to 1 lakh students with a 3% interest on the loan amount.
