Union Budget 2024 Highlights: 4.1 Crore Jobs, ₹11.11 Lakh Crore Boost, Tax Stability

Finance Minister Nirmala Sitharaman presented the Union Budget 2024 today in the monsoon session of the parliament. This first budget of the newly formed union government marks the seventh successive budget presentation of Finance Minister Nirmala Sitharaman. This achievement created history for the highest number of budgets presented by a single finance minister, surpassing the record of former Prime Minister Morarji Desai.

The Central Budget outlines the government’s achievements in the past financial year and describes the allocations and prospective income and tax changes for the coming fiscal year.

In her presentation of the Union Budget for the fiscal year 2024-25, Finance Minister Nirmala Sitharaman emphasised the stability of India’s inflation rate, which is steadily nearing the 4% target. She also noted that the current core inflation rate is 3.1%.

India, now ranked as the fifth-largest economy globally, is on a path to ascending to the third-largest soon. Before the budget announcement, Prime Minister Narendra Modi emphasised that India is the fastest-growing major economy in the world and voiced confidence that Budget 2024 would propel the vision of ‘Viksit Bharat’ by 2047.

Union Budget 2024 Key Highlights

Finance Minister Nirmala Sitharaman highlighted 9 priorities of the Union Budget 2024, these include:

Productivity and Resilience in Agriculture

The Union Budget 2024 prioritises enhancing productivity and resilience in agriculture. Key measures include:

• Modernisation and Technology: Promoting the adoption of modern farming techniques and precision agriculture to increase crop yields.
• Irrigation and Water Management: Expanding irrigation facilities and improving water management systems to ensure sustainable agricultural practices.
• Support for Farmers: Introducing schemes to provide financial support and crop insurance to protect farmers from losses due to natural calamities.
• Research and Development: Investing in agricultural research to develop high-yield and climate-resilient crop varieties.

Employment & Skilling

The budget places significant emphasis on generating employment and enhancing skills. Key initiatives include:

• Skill Development Programs: Launch new programs and expand existing ones to equip the workforce with the skills required for emerging industries.
• Apprenticeships and Internships: Encouraging apprenticeships and internships to provide hands-on experience and bridge the gap between education and employment.
• Support for Startups: Providing financial and policy support to startups to create more job opportunities.
• Focus on Women and Youth: Special schemes aimed at increasing employment opportunities for women and the youth.

Inclusive Human Resource Development and Social Justice

The budget underscores the importance of inclusive human resource development and social justice. Key areas of focus include:

• Education: Increasing funding for educational infrastructure and digital learning to ensure access to quality education for all.
• Healthcare: Enhancing healthcare services and infrastructure, particularly in rural areas, to provide better healthcare access.
• Social Welfare Schemes: Expanding social welfare programs to support vulnerable sections of society, including women, children, and the elderly.
• Equal Opportunities: Implementing policies to ensure equal opportunities in employment and education, regardless of gender, caste, or economic background.

Manufacturing & Services

The budget aims to boost the manufacturing and services sectors through several key initiatives:

• Production Linked Incentives (PLI): Expanding the PLI scheme to encourage manufacturing in key electronics, automotive, and pharmaceutical sectors.
• Ease of Doing Business: Simplifying regulations and reducing compliance burdens to make it easier for businesses to operate.
• Support for MSMEs: Providing financial assistance and incentives to Micro, Small, and Medium Enterprises (MSMEs) to foster growth and innovation.
• Export Promotion: Implementing measures to increase exports and enhance the competitiveness of Indian products in global markets.

Urban Development

Urban development is a key priority in the budget, with a focus on:

• Smart Cities Mission: Allocating funds to enhance urban infrastructure and services in smart cities.
• Affordable Housing: Increasing investments in affordable housing projects to ensure housing for all.
• Public Transportation: Expanding and modernising public transportation systems to improve connectivity and reduce traffic congestion.
• Sustainable Urbanisation: Promoting green and sustainable urban development practices.

Energy Security

The budget emphasises the importance of energy security for sustainable development. Key measures include:

• Renewable Energy: Increasing investments in renewable energy projects, including solar and wind energy.
• Energy Efficiency: Promoting energy efficiency measures across industries and households.
• Strategic Reserves: Expanding strategic oil reserves to enhance energy security.
• Green Energy Initiatives: Incentivising green hydrogen production and electric vehicle adoption.

Infrastructure

Infrastructure development is a cornerstone of the budget, with significant allocations for:

• Transport Infrastructure: Enhancing road, rail, and air transport infrastructure to improve connectivity and support economic growth.
• Urban Infrastructure: Investing in urban infrastructure projects, including water supply, sanitation, and waste management.
• Digital Infrastructure: Expanding digital infrastructure to support the Digital India initiative and improve internet connectivity.
• Public-Private Partnerships: Encouraging public-private partnerships to leverage private sector investment in infrastructure projects.

Innovation, Research & Development

The budget prioritises innovation and research and development (R&D) to drive economic growth. Key initiatives include:

• R&D Funding: Increasing funding for R&D in key sectors such as biotechnology, pharmaceuticals, and information technology.
• Innovation Hubs: Establishing innovation hubs and incubators to support startups and promote innovation.
• Collaboration: Encouraging collaboration between academia, industry, and government to drive research and innovation.
• Tax Incentives: Providing tax incentives for companies investing in R&D activities.

Next Generation Reforms

The budget outlines next-generation reforms to sustain economic growth and development. Key areas include:

• Regulatory Reforms: Simplifying and streamlining regulations to improve the business environment.
• Financial Sector Reforms: Enhancing the stability and efficiency of the financial sector through regulatory reforms.
• Labour Reforms: To create a more flexible and inclusive labour market.
• Governance Reforms: Promoting good governance practices to improve transparency and accountability in government operations.

Tax Regime

Here is a summary table for the tax reforms announced in Union Budget 2024:

New Income Tax Rates

The Union Budget 2024 introduced new income tax slabs to make the new tax regime more appealing. Here are the updated tax rates:

Budget Allocation in Various Sectors

Here is a table summarising the budget allocation in various sectors as announced in Union Budget 2024:

Conclusion

The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, focuses on driving economic growth and development through significant investments in infrastructure, agriculture, and urban modernisation. With a substantial capital expenditure outlay of ₹11.11 lakh crore, the budget underscores the government’s commitment to sustainable development and economic resilience.