February 2, 2024

Budget 2024 Highlights - Union Budget 2024-25

Budget 2024 Highlights – Union Budget 2024-25

The 2024 Budget focuses on various sectors, maintaining income tax rates and offering rebates for low-income earners. It emphasizes infrastructure, healthcare, aviation, green energy, and railway upgrades. Additionally, the budget aligns with the long-term vision of Amrit Kaal for India’s development and sustainability.

Content:

Income Tax Budget 2024 – Budget for Tax Payers

In the 2024 Budget, the FM announced no changes in income tax rates, maintaining the rebate under Section 87A for individuals with income up to Rs 7 lakh. Additionally, tax demands up to Rs 25,000 for FY 2009-10 and Rs 10,000 for FY 2010-11 to 2014-15 are withdrawn, benefiting about a crore taxpayers.

Further Explanation:

  • Section 87A Rebate: Individuals earning up to Rs 7 lakh annually will continue to receive a full tax rebate, making their tax liability zero.
  • Withdrawal of Tax Demands:
    • For FY 2009-10, outstanding tax demands up to Rs 25,000 are withdrawn.
    • For FYs 2010-11 to 2014-15, demands up to Rs 10,000 are also withdrawn.
  • Impact: This initiative is expected to positively impact approximately 1 crore taxpayers by reducing their financial burden from old tax demands.

Finance – Union Budget 2024 

The Union Budget 2024 focuses on economic growth with an 11.1% increase in capex to Rs 11.11 lakh crore. Fiscal deficit targets are 5.1% for FY25, aiming for below 4.5% by FY26. No tax changes announced, with efforts to boost the EV ecosystem and manage fiscal health through adjusted borrowing and divestment targets.

Finance-related highlights from the Union Budget 2024 include:

Capital Expenditure Outlay:

  • Increased by 11.1% to Rs 11.11 lakh crore for FY25, representing 3.4% of GDP, to boost infrastructure and stimulate economic growth.

Fiscal Deficit Targets:

  • Set at 5.1% of GDP for FY25, aiming for a reduction to below 4.5% by FY26.
  • Fiscal Deficit for FY24 seen at 5.8% of GDP.

 Market Borrowing:

  • Gross Market Borrowing for FY24 estimated at Rs 14.1 lakh crore.
  • FY25 gross market borrowing pegged at Rs 14.13 lakh crore, with net borrowing at Rs 11.75 lakh crore. This represents a reduction compared to this year’s budget estimate of Rs 15.43 lakh crore.

Nominal GDP Growth: Assumed to be 10.5% for FY25.

Divestment Targets:

  • FY25 divestment target set at Rs 50,000 crore.
  • Lowered to Rs 30,000 crore for FY24.

Subsidies:

  • Major subsidies for FY25 seen at 1.2% of GDP versus 1.4% in FY24.
  • Food subsidy for FY24 revised to Rs 2.12 lakh crore from Rs 1.97 lakh crore.
  • FY25 non-debt capital receipts seen at Rs 79,000 crore.

Income Tax:

  • No changes proposed in direct and indirect taxation.
  • Section 87A rebate continues for individuals with taxable income up to Rs 7 lakh, reducing tax liability to zero.
  • Withdrawal of outstanding tax demands up to Rs 25,000 for the period up to FY 2009-10 and up to Rs 10,000 for financial years 2010-11 to 2014-15, benefiting about a crore taxpayers.
  • Electric Vehicle (EV) Ecosystem: Expansion and strengthening of the EV ecosystem with support for manufacturing and charging infrastructure.

Budget for Railway 2024

The 2024 Railway Budget includes upgrading around 40,000 rail carriages to Vande Bharat standards for enhanced speed and comfort. Additionally, it introduces three new railway corridors to expand the network and connectivity, demonstrating a significant investment in modernizing and improving India’s railway infrastructure.

Vande Bharat Upgrade: The government plans to upgrade approximately 40,000 rail carriages to the Vande Bharat standard, showcasing a commitment to modernizing the railway fleet for improved speed, comfort, and efficiency.

New Railway Corridors: The establishment of three new railway corridors is part of the budget, aimed at expanding the railway network and improving connectivity across different regions of the country.

Healthcare Budget 2024

In Healthcare, Budget 2024 focuses on expanding Ayushman Bharat to include all ASHA and Anganwadi workers, providing them with health insurance. It also integrates maternal and child care schemes, aiming to improve access and efficiency in healthcare services for women and children.

Ayushman Bharat Expansion: The government announced an expansion of the Ayushman Bharat scheme to cover all ASHA (Accredited Social Health Activists) and Anganwadi workers. This move aims to provide comprehensive health insurance benefits to these frontline healthcare workers, recognizing their crucial role in India’s healthcare ecosystem.

Integration of Maternal and Child Care Schemes: In a significant step towards streamlined and effective healthcare delivery, all maternal and child care schemes will be brought under a single umbrella. This integration is expected to ensure better access to healthcare services for women and children, improving outcomes and efficiency.

Aviation – Union Budget 2024

Expansion of Existing Airports: The budget mentions the continuation of expanding existing airports, which is part of the government’s commitment to enhancing aviation infrastructure to accommodate the growing demand for air travel and improve connectivity.

Green Energy – Budget 2024

Rooftop Solar Scheme: A significant highlight is the introduction of a rooftop solar scheme aimed at helping one crore people get free electricity. This initiative underscores the government’s focus on promoting green energy solutions and reducing the carbon footprint.

Infrastructure Development – Budget 2024 Highlights

The budget proposes an 11.1% increase in capital expenditure to Rs 11.11 lakh crore (3.4% of GDP), signaling substantial infrastructure investment. Plans include constructing 2 crore houses, expanding Metro Rail and Namo Bharat to more cities, and upgrading 40,000 rail bogies to Vande Bharat standards, boosting housing and transportation infrastructure.

Capex Outlay Increase: The FY25 capital expenditure outlay has been increased by 11.1 percent to Rs 11.11 lakh crore, at 3.4 percent of GDP, indicating a substantial investment in infrastructure development across sectors.

2 Crore Houses: The government plans to build 2 crore houses in the next five years, highlighting a significant push towards improving housing infrastructure.

Metro Rail and Namo Bharat Expansion: Plans to expand Metro Rail and Namo Bharat to more cities, enhancing urban infrastructure and connectivity.

Vande Bharat Rail Upgrade: Approximately 40,000 rail bogies are to be upgraded to the Vande Bharat standard, indicating a significant investment in modernizing the railway infrastructure.

Electric Vehicles – Union Budget 2024-25 Highlights

EV Ecosystem Support: The government will expand and strengthen the electric vehicle (EV) ecosystem by supporting manufacturing and charging infrastructure. This initiative is aimed at boosting the adoption of EVs as part of the country’s green growth strategy.

Strategy for Amrit Kaal

Amrit Kaal typically refers to the government’s vision for India’s development leading up to the centenary of its independence in 2047, focusing on comprehensive growth, infrastructure development, energy sustainability, and technological innovation. The budget hints at long-term objectives such as fiscal consolidation, infrastructure enhancement, and green energy promotion, which align with Amrit Kaal’s overarching goals.

Each of these points reflects the Union Budget 2024 components aimed at fostering economic growth, sustainable development, and enhancing the quality of life for its citizens, aligning with the broader vision for India’s future.

Budget for 2024 – FAQ

1. What is new in budget 2024?

Budget 2024 introduces an 11.1% increase in capital expenditure, focusing on infrastructure development, housing, railways, healthcare, aviation, and green energy. It maintains income tax rates and provides relief to taxpayers.

2. What is the tax slab for 2024?

The income tax slab for 2024 remains unchanged. Taxpayers with an annual income of up to Rs 7 lakh continue to receive a full rebate under Section 87A, reducing their tax liability to zero.

3. What is the overall Railway Budget?

The 2024 Railway Budget includes upgrading around 40,000 rail carriages to Vande Bharat standards and introducing three new railway corridors to expand the network, emphasizing modernization and improved connectivity.

4. What is the budget highlights for tax payers?

The Union Budget 2024 maintains income tax rates, offers Section 87A rebate for income up to Rs 7 lakh, and withdraws tax demands up to Rs 25,000 for FY 2009-10 and up to Rs 10,000 for FYs 2010-11 to 2014-15, benefiting about 1 crore taxpayers.

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