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Writer's pictureIndrajeet Sharma

Budget 2024: Roadmap for ‘Viksit Bharat’

Updated: Jul 24


Budget 2024: Roadmap for ‘Viksit Bharat’

The budget for 2024-25 presented by Hon'ble Finance Minister, Smt. Nirmala Sitharaman, laid multi-dimensional blueprints to achieve the goal of a 'Viksit Bharat' with a focus on nine selected sectors: agriculture and allied services, employment and job creation, social justice, manufacturing, urban infrastructure, energy security, infrastructure and investment, innovation and R&D, and next-generation reforms.

 

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Join TaxBuddy’s Twitter Space on 23 July 2024, for a Live Discussion on Union Budget 2024. Participate in the conversation and get expert insights at https://x.com/TaxBuddy1/status/1815697918034125272.


Budget 2024: Key Priorities and Initiatives


Agriculture and Rural Development:


  • Reform in Agriculture Research: The entire agriculture research set-up shall be revised for serving the twin purpose of increasing productivity and climate-resilient varieties.

  • New Crop Varieties: 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops will be released.

  • Natural Farming: 1 crore farmers will be initiated into natural farming with certification and branding support. 10,000 bio-input resource centres will be established.

  • Pulses and Oilseeds: Production, storage, and marketing will be strengthened to achieve self-sufficiency.

  • Vegetable Clusters: Promoting large clusters for vegetable production in proximity to major consumption centers.

  • Digital Public Infrastructure (DPI): Expanding DPI in agriculture to farmers and their lands in three years, with digital crop surveys done in 400 districts.


Employment & Skilling:


  • Participation of Women in Workforce: Collaboration with the industry to set up working women hostels and creches.

  • Wage-Related Benefits: One month's wage to new entrants in all formal sectors up to ₹15,000.

  • EPFO Contributions: Incentives to employees and employers for the first four years.

  • Job Creation: Government reimbursement for EPFO contribution up to ₹3000 per month for new recruits.

  • Skilling Program: Empowering 20 lakh youth in 5 years through upgraded Industrial Training Institutes.


Social Justice and Human Resource Development:


  • Women's and Tribal Development: Over ₹3 lakh crore for various schemes for Women and girls, and for tribal communities through pradhan Mantri Janjatiya Unnat Gram Abhiyan.

  • Assistance for North East: Over 100 branches of India Post Payment Bank in the NorthEast region.

  • Andhra Pradesh Reorganisation Act: ₹15,000 crore & Polavaram Irrigation Project Completion.


Manufacturing & MSMEs:


  • National Industrial Corridor Development Programme: Setting up twelve industrial parks.

  • Support to MSMEs: Credit Guarantee Scheme, extending Mudra Loans and mandatorily on boarding in Trade Receivables electronic Discounting System (TReDS).

  • Rental Housing: Dormitory type accommodation for industrial workers in PPP mode.


Urban Development:


  • Housing: PM Awas Yojana Urban 2.0 with an investment of ₹10 lakh crore for the present and future - housing needs.

  • Water Management: Promoting projects in 100 large cities for water supply, sewage treatment, and solid waste management.


Energy and Infrastructure:


  • Clean Energy Initiatives: Financial support for shifting micro and small industries to cleaner forms of energy, investment-grade energy audits.

  • Infrastructure Development: ₹11,11,111 crore outlay for infrastructure; PMGSY IV, too, to be launched for rural connectivity.


Innovation & R&D:


  • Research Fund: Operationalization of the Anusandhan National Research Fund.

  • Innovation in the Private Sector: ₹1 lakh crore financing pool for research and innovation driven by the private sector.


Budget 2024: Tax Proposals


Direct Tax Proposals:


  • Standard Deduction: ₹50,000 has been increased to ₹75,000 for salaried employees under the New Tax Regime.

  • Revision in Family Pension Deduction: From ₹15,000 to ₹25,000 for pensioners.

  • Capital Gains Tax:

  • Capital gains holding periods are fixed at 12 months for listed securities, 24 months for other assets.

  • Short-term Capital Gains: The rate of tax for financial assets is raised to 20%.

  • LTCG: Long-term capital gains are increased to 12.5% on specified assets and are reduced from 20% to 12.5% in the case of property sales with the withdrawal of indexation benefits.

  • Exemption Limit: Raised from ₹1 lakh to ₹1.25 lakh per annum.


Customs Duty Proposals:


  • Reduction in Duty on Imports: Basic Custom Duty (BCD) on gold and silver is now 6% and on platinum at 6.4%.

  • Support to Mobile Industry: BCD on mobile phones, PCBA, and chargers are now at the rate of 15%.

  • Incentivizing Renewable Energy: Exemption of basic customs duty on critical minerals for the manufacture of solar cells and panels.

  • Marine Exports: BCD on shrimp and fish feed reduced to 5%.


Simplification and Rationalization:


  • Abolition of Angel Tax: For all classes of investors.

  • Corporate Tax Reduction: In respect of foreign companies, it was cut down from 40% to 35%.


Budget 2024: Financial Allocations


  • Defense: ₹4,54,773 crore

  • Agriculture and Allied Activities: ₹1,51,851 crore

  • Health: ₹89,287 crore

  • Education: ₹1,25,638 crore

  • Social Welfare: ₹56,501 crore


Major Schemes:


  • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Allocated ₹60,000 crore for 2024-25.

  • Direct Benefit Transfer (LPG): Allocated ₹1,300 crore.



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