Finance Minister Unveils Strategic Budget 2024
On July 23, 2024, Finance Minister Nirmala Sitharaman presented the Union Budget for 2024-25, her seventh consecutive budget. This presentation, marking the first Budget under the re-elected BJP-led NDA government, reflects a strategic shift in fiscal policy with a robust focus on employment, skilling, and support for the middle class and micro, small, and medium enterprises (MSMEs).
The budget outlines a substantial allocation of ₹1.48 lakh crore dedicated to education, employment, and skill development, setting the tone for its primary objectives. The Finance Minister highlighted nine key priorities, including agricultural productivity, job creation, and social justice, signaling a broad-based approach to economic development.
Strategic Investments in Agriculture and Employment
Under the agricultural sector, the Budget introduces measures to promote natural farming and achieve self-sufficiency in pulses and oilseeds. The emphasis on digital public infrastructure aims to enhance agricultural efficiency and sustainability.
In the realm of employment and education, three new employee-linked incentive schemes were announced. These initiatives, part of the Prime Minister’s package, are designed to facilitate the enrollment of first-time employees in the Employee Provident Fund Organisation. They also offer support to employers and employees, aiming to foster job creation and economic stability.
Additionally, the Budget provides support loans of up to ₹10 lakh for students pursuing education in domestic institutions. E-vouchers will be issued to 1 lakh students annually, offering a 3% interest subvention on loans. A comprehensive internship scheme will also be implemented, providing one crore youth with exposure to real-world business environments over five years.
Development Initiatives for Eastern and Southern States
The Budget includes targeted schemes for the eastern states under the “Purvodaya” initiative, which focuses on comprehensive development in Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. In Bihar, the government plans to invest ₹26,000 crore in expressways, power projects, new airports, medical colleges, and sports infrastructure.
For Andhra Pradesh, the Budget outlines support for industrial development through the AP Reorganisation Act, emphasizing investment in basic infrastructure such as water, power, and roads. These investments aim to stimulate regional economic growth and enhance overall development.
Empowering Women and Supporting MSMEs
A significant allocation of over ₹3 lakh crore has been earmarked for schemes benefiting women and girls, underscoring the Budget’s commitment to promoting women-led development. This allocation is designed to support various initiatives aimed at enhancing women’s economic participation and social empowerment.
The Budget also pays special attention to MSMEs and labor-intensive manufacturing. A new assessment model for MSME credit will be introduced, relying on digital footprints rather than traditional asset and turnover criteria. This change aims to improve access to credit for small enterprises, fostering growth and innovation in this sector.
Tax Reforms and Digitization
In a bid to simplify the tax structure, the Budget proposes several reforms. The TDS rate for e-commerce operators will be reduced from 1% to 0.1%, and capital gains taxation will be significantly simplified. Short-term gains on specific financial assets will now attract a 20% tax rate, while other assets will retain existing rates. For lower and middle-income groups, the exemption limit on capital gains will be increased to ₹1.25 lakh per year.
The digitization of taxpayer services under GST, Customs, and Income Tax has been accelerated, with plans to complete the digitization of all customs services within the next two years. The introduction of the Vivaad Se Vishwas Scheme 2024 aims to resolve pending Income Tax disputes, further streamlining the tax administration process.
Summary
The Budget 2024, unveiled by Finance Minister Nirmala Sitharaman, represents a strategic realignment of India’s fiscal policy. With a focus on employment, MSMEs, and tax reforms, this budget aims to stimulate economic growth, support regional development, and enhance the efficiency of tax administration.
Key Learning Points
| Point | Details |
|---|---|
| Strategic Focus Areas | The Budget emphasizes employment, MSMEs, and tax reforms. |
| Agricultural and Employment Initiatives | Initiatives include natural farming, skill development, and educational loans. |
| Regional Development Plans | Investments planned for eastern and southern states under various schemes. |
| Women Empowerment | Over ₹3 lakh crore allocated for women and girls’ development. |
| Tax Reforms | Simplified tax structure and digitization of services introduced. |
Soumya Smruti Sahoo is a seasoned journalist with extensive experience in both international and Indian news writing. With a sharp analytical mind and a dedication to uncovering the truth, Soumya has built a reputation for delivering in-depth, well-researched articles that provide readers with a clear understanding of complex global and domestic issues. Her work reflects a deep commitment to journalistic integrity, making her a trusted source for accurate and insightful news coverage.
