Union Budget 2024: Key Takeaways and Major Highlights

Last month, the Finance Minister presented the first union budget of the current elected government. The budget, particularly, focuses on rising employment, skilling, MSMEs, and the middle class and for all-round prosperity. It marked a significant step in India’s economic roadmap, addressing crucial areas of growth, sustainability, and inclusivity. This year’s budget is designed to bolster economic resilience, drive digital transformation, and enhance social welfare.

Key Highlights of the Union Budget 2024

Let us delve into the key highlights of the Union Budget 2020 below:

1. Economic Growth and Fiscal Deficit

• GDP Growth Target: The government has set an ambitious GDP growth target of 7.5 per cent for the fiscal year 2024-25, reflecting optimism in post-pandemic recovery.
• Fiscal Deficit: The fiscal deficit is projected to be 5.9 per cent of the GDP, with a commitment to gradually reduce it to 4.5 per cent by 2025-26.

2. Taxation and Financial Reforms

• Income Tax Slabs: No changes in the existing income tax slabs, but additional benefits for senior citizens with increased exemption limits.
• Corporate Tax: Continued reduction in corporate tax rates for new manufacturing companies to 15 per cent.
• GST Reforms: Simplification of GST compliance processes and reduction in GST rates on essential items like healthcare and education.

3. Comparison of Old and New Tax Regimes

The Union Budget 2024 continues to offer taxpayers a choice between the old tax regime with exemptions and deductions, and the new tax regime with lower tax rates but without most exemptions and deductions. Here’s a comparison of the two regimes:

• Old Regime: Suitable for taxpayers who avail various exemptions and deductions like HRA, standard deduction, and 80C investments.
• New Regime: Attractive for those who prefer simplified tax filing and do not have significant deductions or exemptions to claim.

4. Agriculture and Rural Development

• Agriculture Credit: The Government of India declared to allocate INR 20 lakh crore for agriculture credit, while focusing on animal husbandry, dairy, and fisheries.
• Rural Infrastructure: The government allocated INR 2.5 lakh crore for rural infrastructure development, such as roads, housing, and sanitation. 
• PM Kisan Scheme: The government decided to enhance the direct income support to farmers under the PM-KISAN scheme. 

5. Health and Education

• Healthcare: The sector is allocated INR 1.2 lakh crore with a significant portion earmarked for the National Health Mission and health infrastructure development.
• Education: INR 1 lakh crore allocated to the education sector, focusing on digital learning, skill development, and vocational training programs.
• Nutrition: The government decided to increase the mid-day meal funding and women and child development programs.

6. Infrastructure and Urban Development

• Smart Cities Mission: Expansion of the Smart Cities Mission with a budget of INR 1 lakh crore to develop 100 more smart cities.
• Transportation: INR 2 lakh crore allocated for the development of highways, railways, and urban transport systems, including metro rail projects in tier-2 cities.
• Affordable Housing: Extension of the PMAY scheme with an additional allocation of INR 50,000 crore to achieve the target of ‘Housing for All.’

7. Digital India and Innovation

• Digital Infrastructure: The union budget dedicated INR 1.5 lakh crore to digital infrastructure, including the expansion of high-speed internet to rural areas.
• Start-up Ecosystem: Boost to the start-up ecosystem with tax benefits, easier access to funding, and support for innovation and research.
• Cybersecurity: Establishment of a National Cybersecurity Framework with an allocation of INR 10,000 crore.

8. Climate Action and Sustainability

• Green Energy: INR 2 lakh crore allocated to renewable energy projects, with a focus on solar, wind, and hydrogen energy.
• Climate Resilience: Funding for climate resilience projects and disaster management, particularly in coastal and flood-prone areas.
• Pollution Control: Measures for pollution control and sustainable urban development, including waste management and green urban spaces.

9. Social Welfare and Inclusion

• Women Empowerment: The union budget allocated INR 1 lakh crore for women-centric schemes, including self-help groups, entrepreneurship, and safety programs.
• Senior Citizens and Differently-Abled: Increased pension schemes and healthcare benefits for senior citizens and differently-abled individuals.
• Minority Welfare: Enhanced funding for minority welfare programs, focusing on education, employment, and social justice.

10. Defense and Security

• Defense Budget: Allocation of INR 5 lakh crore for defense, with emphasis on modernization, self-reliance, and indigenous manufacturing.
• Border Security: Strengthening of border infrastructure and security measures, including advanced surveillance systems.

11. Employment and Skill Development

• Job Creation: Initiatives for job creation through public-private partnerships and investment in labor-intensive sectors.
• Skill India Mission: Expansion of the Skill India Mission with new training centers and courses aligned with industry needs.

Conclusion

The Union Budget 2024 reflects a balanced approach towards economic growth, social welfare, and sustainability. By focusing on key sectors like agriculture, health, education, and digital infrastructure, the government aims to create a robust and inclusive economy. As India moves forward, the successful implementation of these budgetary provisions will be crucial in achieving the nation’s long-term goals. SkizzleHR’s payroll software makes your tax calculations and deductions like a breeze. Explore how our HR software can streamline your calculations. 

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