Finance Minister Nirmala Sitharaman in her 7th consecutive budget, has charted a roadmap aimed at economic growth, infrastructure development, employment generation, and social welfare, reflecting a comprehensive approach to addressing the country’s diverse needs. The budget emphasizes maintaining low inflation, with measures in place to manage food inflation effectively.
Despite global economic uncertainties, the Finance Minister assured that inflation is on track to reach the 4% target. The Budget emphasizes support for the middle class, employment, skilling, MSMEs, and inclusive development.
Nine priorities have been outlined for generating employment, including productivity, jobs, social justice, urban development, energy security, infrastructure, and reforms. Despite global uncertainties, the government remains committed to enhancing economic growth.
Focus on Employment and Skilling Initiatives
The Union Budget 2024 allocates Rs 2 lakh crore to enhance job creation and skill development, aiming to benefit 20 lakh youth. Key measures include a new employment skilling scheme offering a one-month wage up to Rs 15,000 in three installments for first-time employees, and a reimbursement of up to Rs 3,000 per month for EPFO contributions for additional employees. An internship scheme will provide opportunities to one crore youths over five years, with each intern receiving a monthly allowance of Rs 5,000 and a one-time assistance of Rs 6,000. Skilling programs in collaboration with state governments and industries will upgrade 1,000 Industrial Training Institutes. Financial support for higher education loans up to Rs 10 lakh is also introduced.
Infrastructure and Regional Development
A Capex outlay of Rs 11.1 lakh crore underscores the government’s commitment to infrastructure development. Major road connectivity projects worth Rs 26,000 crore include the Patna-Purnia Expressway and the Buxar-Bhagalpur Expressway. The development of an industrial node at Gaya on the Amritsar-Kolkata Industrial Corridor is also announced. Enhanced infrastructure in Bihar, including new airports and medical colleges, and a significant 15,000 crore rupee allocation for Andhra Pradesh’s capital city highlight the regional development focus.
Support for MSMEs and Industrial Growth
To bolster MSMEs, the turnover threshold for MSME buyers on the TReds platform is reduced from Rs 500 crore to Rs 250 crore. SIDBI will open 24 new branches to serve MSME clusters, and the loan limit under the MUDRA scheme is doubled to Rs 20 lakh. Public sector banks will enhance their credit assessment capabilities for MSMEs.
Women and Marginalized Communities
A substantial Rs 3 lakh crore allocation for women-centric schemes includes establishing working women hostels with creches and launching women-specific skilling programs. The Centre is also considering reducing stamp duties for properties purchased by women. These measures aim to significantly increase women’s participation in the workforce and empower women-led enterprises.
Tax Reforms and Simplification
The budget introduces several tax reforms, including increased standard deductions for salaried employees and enhanced family pension deductions. The abolition of angel tax for all investor classes and increased NPS deductions are designed to support startups and improve tax compliance. A comprehensive review of the Income-Tax Act is planned to simplify the tax structure and reduce litigation.
Rural Development and Agriculture
A substantial allocation of Rs 2.66 trillion is earmarked for rural development, including constructing 30 million affordable housing units and improving infrastructure. The Purvodaya Plan aims to develop Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh comprehensively. In agriculture, Rs 1.52 lakh crore is allocated to release high-yielding, climate-resilient crop varieties and support one crore farmers in transitioning to natural farming.
Customs Duties and Sector-Specific Incentives
Significant changes in customs duties include reductions on gold, silver, and platinum, and adjustments on various goods to benefit industries. The Securities Transaction Tax (STT) on options and futures has been increased, while TDS on e-commerce transactions is reduced to 0.1 percent from 1 percent.
Critical Mineral Mission and Other Initiatives
The budget announces the launch of a Critical Mineral Mission and the auction for the first offshore mining blocks. A new rental housing scheme for industrial workers, 100 branches of India Post Payments Bank in the North East, and an allocation of Rs 10 lakh crore for 1 crore urban houses are also planned.
The Union Budget 2024 presents a multifaceted approach to economic growth, infrastructure development, and social welfare, reflecting a commitment to inclusive progress and regional development.