As India continues to navigate the challenges of the post-pandemic world, the Union Budget 2024 provides a roadmap for economic recovery and sustainable development. The increased standard deduction, revised income tax rates, and substantial investments in key sectors are expected to stimulate growth, create jobs, and promote social welfare, ensuring that the benefits of development reach all sections of society.
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Union Budget 2024: Major Tax Reforms and Economic Boosts Unveiled
New Delhi, July 2024 – In her seventh consecutive Union Budget presentation, Finance Minister Nirmala Sitharaman announced significant changes aimed at providing relief to taxpayers and spurring economic growth. The Union Budget 2024, set to lay the foundation for a ‘Viksit Bharat’ by 2047, includes a substantial hike in the standard deduction and revised income tax rates. Following her budget speech, Sitharaman, alongside Minister of State for Finance Pankaj Chaudhary and Finance Secretary T.V. Somanathan, will address the media to elaborate on the budget’s key highlights and implications.
Key Announcements and Live Updates
| Time | Update |
|---|---|
| 9:30 am | Nirmala Sitharaman heads to Rashtrapati Bhavan with the budget documents |
| 10:30 am | Nirmala Sitharaman reaches Parliament |
| 11:00 am | Finance minister tables budget |
| 11:15 am | Nirmala Sitharaman says the focus is on employment, poor, women, youth, and farmers |
| 11:20 am | Agriculture and allied sectors get Rs 1.52 lakh crore |
| 11:30 am | Budget provides Rs 1.48 lakh crore for education, employment, skill development |
| 11:35 am | New centrally-sponsored scheme to skill 20 lakh youth over 5 years |
| 11:45 am | Govt to set up working women hostels |
| 12:00 pm | Budget provides Rs. 2.66 lakh crore for rural development |
| 12:30 pm | Standard deduction hiked |
Union Budget 2024: Major Tax Reforms and Economic Boosts Unveiled
Standard Deduction Hike and New Income Tax Rates
The Union Budget 2024 has introduced significant reforms in the taxation system. The standard deduction, which is a fixed amount salaried employees and pensioners can deduct from their taxable income without needing to provide proof of expenses, has been increased from ₹50,000 to ₹75,000. This change aims to provide relief amid rising inflation and the increasing cost of living.
Revised Income Tax Slabs
| Income | Tax Rate (%) |
|---|---|
| Upto ₹3 lakh | Nil |
| ₹3 lakh – ₹7 lakh | 5 |
| ₹7 lakh – ₹10 lakh | 10 |
| ₹10 lakh – ₹12 lakh | 15 |
| ₹12 lakh – ₹15 lakh | 20 |
| Above ₹15 lakh | 30 |
Standard Deduction Hike and New Income Tax Rates
These new tax slabs are designed to simplify the tax structure and provide relief to middle-income taxpayers, thereby boosting disposable incomes and consumer spending.
Focus Areas: Employment, Education, and Rural Development
The budget has earmarked substantial funds for various sectors to promote inclusive growth and development.
- Employment and Skill Development: The budget allocates ₹1.48 lakh crore for education, employment, and skill development initiatives. A new centrally-sponsored scheme aims to skill 20 lakh youth over the next five years, addressing the growing need for a skilled workforce.
- Rural Development: With ₹2.66 lakh crore allocated for rural development, the budget emphasizes improving infrastructure and living standards in rural areas. This includes significant investments in roads, electrification, and clean drinking water projects.
- Agriculture: The agricultural sector has received a boost with ₹1.52 lakh crore allocated for various initiatives aimed at enhancing productivity and sustainability. This includes increased funding for the Pradhan Mantri Fasal Bima Yojana to provide better crop insurance and risk coverage for farmers.
Social Welfare and Healthcare
Social welfare programs and healthcare services have also seen increased allocations to ensure broader societal benefits.
- Healthcare: The National Health Mission receives a substantial boost, aimed at improving healthcare infrastructure and services, particularly in underserved regions. Plans include the establishment of new medical colleges and hospitals.
- Women and Vulnerable Populations: The budget proposes setting up hostels for working women and expanding the Pension Yojana for senior citizens. Additional funds are allocated for social security schemes to provide financial assistance to vulnerable populations.
Infrastructure and Digital India
Recognizing the critical role of infrastructure in economic growth, the budget allocates ₹10 lakh crore towards infrastructure projects.
- Infrastructure Development: This includes extensive road and highway construction, railway expansion, and the development of smart cities, expected to create millions of jobs and stimulate ancillary industries.
- Digital India: The budget supports the expansion of digital infrastructure with significant investments aimed at increasing internet connectivity in rural areas, promoting digital literacy, and supporting the growth of digital services and startups.
Fiscal Discipline and Environmental Sustainability
Despite the ambitious spending plans, the Union Budget 2024 emphasizes fiscal discipline with a plan to reduce the fiscal deficit to 4.5% of GDP. This target will be achieved through enhanced revenue measures and rationalization of expenditure.
- Tax Compliance: Measures to improve tax compliance and broaden the tax base include the introduction of a simplified tax filing process and enhanced enforcement against tax evasion.
- Green Initiatives: The budget includes increased funding for renewable energy projects, incentives for electric vehicle adoption, and the development of sustainable urban transportation systems, all aimed at reducing India’s carbon footprint and promoting environmental sustainability.
Expert Opinions and Public Reactions
The Union Budget 2024 has received mixed reactions from various stakeholders.
- Industry Leaders: The increased focus on infrastructure development and support for MSMEs has been well-received, with many viewing these measures as essential for driving economic growth and job creation.
- Economists: While praising the government’s efforts to maintain fiscal discipline, some economists have expressed concerns about the feasibility of achieving the fiscal deficit target given the ambitious spending plans.
- Taxpayers: Middle-income taxpayers have welcomed the increased standard deduction and revised income tax rates, which are expected to provide significant relief and boost consumer spending.
- Social Activists: Increased funding for social welfare and healthcare has been positively received, emphasizing the importance of these investments in improving the quality of life for all citizens.
The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, is a comprehensive financial plan aimed at fostering inclusive growth and addressing the diverse needs of the Indian economy. With significant measures to support taxpayers, infrastructure development, social welfare, and environmental sustainability, the budget reflects the government’s commitment to driving long-term economic progress and improving the standard of living for all citizens.
As India continues to navigate the challenges of the post-pandemic world, the Union Budget 2024 provides a roadmap for economic recovery and sustainable development. The increased standard deduction, revised income tax rates, and substantial investments in key sectors are expected to stimulate growth, create jobs, and promote social welfare, ensuring that the benefits of development reach all sections of society.
The Union Budget 2024 is not just a financial document; it is a vision for a more prosperous and inclusive India. As the country moves forward, the measures outlined in the budget will play a crucial role in shaping the future of the nation, driving economic growth, and improving the lives of millions of Indians.
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