Union Finance Minister Nirmala Sitharaman will soon announce the maiden Budget of the third consecutive NDA government led by Prime Minister Narendra Modi. The first significant economic document of the Modi 3.0 government would be the Union Budget 2024, which will likely lay the groundwork for the country's transformation into "Viksit Bharat" by 2047, among other things. Sitharaman presented the pre-budget Economic Survey to the Lok Sabha on Monday. It established a cautious growth estimate of 6.5 to 7 percent for the current fiscal year.
In addition to income taxes, the government's renewed emphasis on jobs and capital expenditures (capex) is anticipated to be highlighted in the budget. The government has pushed for increased capital expenditure in the last few budgets. The capex objective was not met in the current year, according to updated estimates included in the interim budget. The "corporate sector must get its act together to relieve the government of capex heavy lifting," according to an RBI report.
Here are the latest live updates from the Budget 2024 :
For the Key Highlights of the entire Budget 2024 Speech: CLICK HERE
♦ Finance Minister Nirmala Sitharaman concludes speech
The Finance Minister introduced the Finance Bill in the Lok Sabha. The Budget Session has been adjourned till July 24, 11 a.m.
♦ Stock markets give a thumbs down to budget
Stock markets turned highly volatile amid the Union Budget presentation. Sensex is down over 1,000 points.
Revisions in new tax regime
In the new tax regime, the tax rate structure is to be revised, the FM announced. For zero to ₹3 lakh - tax rate is zero. For ₹3 lakh to ₹7 lakh - 5%; For ₹7 lakh to ₹10 lakh - 10%; ₹10 lakh to ₹12 lakh - 15%; For ₹12 lakh to ₹15 lakh - 20%; For ₹15 lakh and higher - 30%. With this, a salaried employee stands to save upto ₹17,500 a year in income tax, the FM said.
♦ What does the Union Budget say on personal Income Tax?
For those opting for the new tax regime, the standard deduction for salaried employees to be increased from ₹50,000 to ₹75,000. Similarly, deduction for family pension for pensioners to be enhanced from ₹15,000 to ₹25,000. This will provide relief to about 4 crore salaried and pensioner individuals, the FM said.
♦ Securities Transaction Tax on Futures and Options contracts is to be increased
Securities Transaction Tax on Futures and Options contracts is to be increased to 0.2% and 0.1%, respectively, the FM said. Income received on buyback of shares to be taxed in the hands of the recipient. Tax deduction on NPS contributions to be raised from 10% of salary to 14% of salary. This will cover government employees as well as private companies in the NPS.
♦ FM proposes to decriminalise delays in payments of TDS up to their filing due date
The TDS rate on e-commerce operators is to be reduced from 1% to 0.1%. I propose to decriminalise delays in payments of TDS upto their filing due date. Simplification of reassessment and reopening of returns. From now, this can be done after three years only if the income involved is ₹50 lakh or more, with a time limit of six years, the FM said.
♦ Budget proposes review of Income Tax Act of 1961 in six months
58% of corporate tax came from the simplified tax regime in 2022-23 and more than 2/3rd of taxpayers have used the new personal tax regime last year. I propose to review the Income Tax Act of 1961 to reduce litigation, in six months. A beginning is being made in the Finance Bill by easing the tax regime for charities. Two tax exemption regimes for charities are proposed to be merged into one, the FM said.
♦ Fiscal deficit is estimated at 4.9% of GDP: FM
The net tax receipts are estimated at ₹25.83 lakh crore, and the fiscal deficit is estimated at 4.9% of GDP for this year. The gross and net market borrowings through dated securities are estimated at ₹14.01 lakh crore and the ₹11.63 lakh crore, respectively, lower than last year. The government is committed to stay the course on fiscal consolidation, with deficit at below 4.5% of GDP in 2025-26, and with sustained reductions thereafter, the FM said.
♦ 2 lakh crore allocated to employ 4.1 crore youth over next 5 years
Union Finance Minister Nirmala Sitharaman in her Budget speech proposed creation of employment of about 4.1 crore youth over the next five years. Towards it, the Finance Minister has made an allocation of ₹2 lakh crore.
Similarly, for skilling the citizens so as to generate job opportunities, she proposed ₹1.48 crore. 20 lakh youth will be skilled over a five-year period. A total of 1,000 industrial training institutes will be upgraded, she announced.
♦ FM on land-related reforms
The Budget proposes to earmark a significant part of the 50-year interest-free loan, to work with the States on following reforms - Land related reforms in both urban and rural areas, that cover land administration, planning and urban planning and building bye-laws. “Rural land-related actions will include assignment of a unique Aadhaar for all lands, digitisation of terrestrial maps, survey of lands, and establishment of land registry. On labour related reforms, our govt. will facilitate a range of services for labour, including employment and skilling.”
♦ Continued emphasis on expanding space economy: FM
The FM announced that for space economy, with the govt’s continued emphasis on expanding it by 5 times in the next ten years, a venture capital fund of ₹1,000 crore will be set up. “We will formulate an economic policy framework to delineate the strategy for sustaining high growth with next generation reforms. These reforms will cover all factors of production, including land, labour and capital. This will require collaboration of the Centre and States,” she said.
♦ FM on tourism
“Tourism has always been a part of our civilisation. Our efforts to position India as a global destination will also create jobs and unlock opportunities in other sectors. I propose Vishnupath temple at Gaya, and Mahabodhi temple in Bodhgaya, are of immense spiritual importance. We will develop corridors there on the model of the successful Kashi Vishwanath corridor to make them a world-class tourist destination,” the FM said.
♦ Budget provides ₹2.66 lakh crore for rural development
Finance Minister Nirmala Sitharaman announced an allocation of ₹2.66 lakh crore for rural development, including infrastructure. She added that the PM Awas Yojana will build three crore more residences in both rural and urban areas. "This year I have made a provision of ₹2.66 lakh crore for rural development, including rural infrastructure," she remarked, introducing the 2024–25 Lok Sabha budget.
♦ FM on irrigation and flood mitigation
The FM noted that Bihar has frequently suffered from floods, many of them originating outside the country. “Plans to solve these problems in Nepal have not progressed. We will provide support of ₹11,500 crore for flood mitigation projects. Assam grapples with floods every year from the Brahmaputra river and its tributaries that originate outside India. We will provide support to them. Uttarakhand, Sikkim and Himachal Pradesh, that suffered due to landslides and floods, will be provided assistance,” she said.
♦ Private investment in infrastructure will be promoted: FM
FM said the Centre has made significant infrastructure investments in years, triggering a multiplier effect. “This will continue over the next five years. This year, I provided ₹11,11,111 crore for capex, which is 3.4% of GDP. We will encourage States to provide support of similar scale for infrastructure development based on their priorities,” she said.
Private investment in infrastructure will be promoted through Viability Gap Funding and a market-based financing framework would be brought out, she added.
♦ FM announces scheme to support development of 100 weekly haats or street food hubs for 5 years
Building on the PM Swanidhi scheme for street vendors, we plan a scheme over the next 5 years to promote 100 weekly haats in select cities, the FM announced.
♦ On water supply and sanitation
In partnership with States, and MDBs, the Modi-led NDA Government will promote water supply, sewage treatment and solid waste management projects for 100 large cities, the FM announced.
♦ Mudra loans limit will be enhanced to ₹20 lakh: FM
FM Nirmala Sitharaman announced that credit support for MSMEs, Mudra loans limit will be enhanced from ₹10 lakh to ₹20 lakh for those who have availed and successfully repaid loans previously taken under the Tarun category.
“For facilitating term loans to MSMEs, a credit guarantee scheme will be introduced. The scheme will operate on the cooling of credit risks of such MSMEs. A self-financing guarantee fund will provide to each applicant cover of up to ₹100 crore while loan amount may be larger...” she said.
♦ Nirmala Sitharaman offers sops to Bihar, Andhra Pradesh but no special package yet
Backward region grant will be provided to 3 districts of Andhra Pradesh, the Finance Minister announced.
♦ Government to launch three employment-linked schemes: FM
The administration announced plans to introduce three programmes related to employment. Finance Minister Nirmala Sitharaman announced during the presentation of the Union Budget for 2024–25 that the government will offer incentives to 30 lakh young people who are starting their careers by matching one month's worth of PF (provident fund) contributions.
In an effort to encourage women to enter the workforce, she declared that working women's hostels would be established across the nation. She went on to say that the government will subsidise the development of climate-resilient seeds by the commercial sector, subject matter experts, and others.
Mahatma Gandhi National Rural Employment Guarantee, or MGNREGA, is an existing programme that attempts to give at least one member of every household whose adult members seek manual labour 100 days of pay employment in a given fiscal year
♦ National Cooperation Policy on anvil: FM
The government will bring a National Cooperation Policy for the overall development of the country, Finance Minister Nirmamala Sitharaman said. Presenting the Budget for 2024-25, she said the Centre will promote digital public infrastructure for agriculture in partnership with states, while Jan Samarth-based Kisan Credit Card will be introduced in five States. Also, the government will provide finance for shrimp farming and marketing, she added.
#Budget2024 | ON MSMEs, Finance Minister Nirmala Sitharaman says, "For facilitating term loans to MSMEs, a credit guarantee scheme will be introduced. The scheme will operate on the cooling of credit risks of such MSMEs. A self-financing guarantee fund will provide to each… pic.twitter.com/iaoielJr8W — ANI (@ANI) July 23, 2024
This Budget focuses the most on MSMEs and Labour intensive manufacturing units - says Finance Minister
♦ Missions for pulses and oil seeds
For achieving self-sufficiency in pulses and oil seeds, the govt will strengthen their production, storage and marketing. A strategy is being put in place to achieve aatanibharta for oil seeds such as mustard, groundnut, sesame, soybean and sunflower, the Finance Minister said in the Lok Sabha, presenting the Union Budget 2024-2025.
♦ FM on natural farming
Ms. Sitharaman said that in the next two years, one crore farmers across the country will be initiated into natural farming supported by certification and branding. Implementation will be through scientific institutions and willing Gram Panchayats. 10,000 need-based bio input resource centres will be established.
♦ FM on productivity and resilience in agriculture
“Transforming agricultural research, our govt will undertake a comprehensive review of the agricultural research setup to bring the focus on raising productivity and developing climate-resilient varieties. Funding will be provided in challenge mode including to the pvt sector, domain experts both from the govt and outside and will oversee the conduct of such research,” Ms. Sitharaman said.
She added that 109 new high-yielding and climate-resilient varieties of 32 field and horticultural crops will be released for cultivation by farmers.
♦ Budget to provide ₹1.48 lakh crore for education and employment and skill: FM
The Finance Minister said that the Budget will focus on employment, skilling, MSME, and the middle class. “Budget for FY25 to provide ₹1.48 lakh crore for education and employment and skill... Implementation of various schemes announced in the Interim Budget in February are still underway,” the Finance Minister said.
♦ FM lays down nine priorities for the Budget
On Budget priorities, the Finance Minister said that in the interim Budget, the govt promised to present a detailed roadmap for the pursuit of Viksit Bharat. “In line with the strategy set in the interim Budget, this Budget envisages sustained efforts on the following nine priorities for generating ample opportunities for all -- productivity and resilience in agriculture, employment and skilling, inclusive human resource development and social justice, manufacturing and services, urban development, emergency security, infrastructure, innovation R&D, next-gen reforms. Subsequent Budgets will build on these and more priorities and actions,” she said.
Union Finance Minister Nirmala Sitharaman says "As mentioned in the interim Budget, we need to focus on 4 different castes, the poor, women, youth and the farmer/ For farmers, we announced higher Minimum Support Prices for all major crops delivering on the promise for at least a… pic.twitter.com/Saj2ee3IU5 — ANI (@ANI) July 23, 2024
♦ We need to focus on the Garib, mahilaye, Yuva, and annadata, says FM
"The Finance Minister said, 'We need to focus on the garib, mahilaye, yuva, and annadata. For annadata, we announced higher MSP a month ago for all major crops, delivering on our promise. The PM Garib Kalyan Anna Yojana was extended for five years, benefiting more than 80 crore people. Administrative actions for the approval and implementation of various schemes announced in the interim budget are well underway.'"
♦ Finance Minister Nirmala Sitharaman presents Union Budget 2024-2025
Finance Minister Nirmala Sitharaman is presenting the Union Budget 2024-2025 in Lok Sabha. India’s inflation continues to be low, stable and moving towards the 4% target, the Finance Minister said.
♦ Budget Session begins; FM to present Budget shortly
The Budget Session of the Parliament began at 11 a.m. on July 23. Finance Minister Nirmala Sitharaman will present her seventh budget in the Lok Sabha today.
♦ Market Update: Pre-Budget Caution Sets In
Latest Movement: Both Sensex and Nifty have fallen into negative territory as investors turn cautious.
Key Numbers:
Sensex: Down 26.2 points to 80,429.74
Nifty: Down 24.8 points to 24,467.05
♦ FM Nirmala Sitharaman reaches Rashtrapati Bhavan & meets the President
Union Finance Minister Nirmala Sitharaman met with President Droupadi Murmu before presenting the Union Budget 2024 to Parliament, as is customary. The President was informed of the contents of the Budget by the Finance Minister and her staff. The Finance Minister was then given "Curd and Sugar," a sign of good luck by President Murmu.
♦ Nirmala Sitharman to create history with 7th straight Budget
When Finance Minister Nirmala Sitharaman unveils her seventh consecutive budget for 2024–25 on Tuesday, she will break former Prime Minister Morarji Desai's record. Establishing the tone for the Modi government's third term, one of its main goals would be to increase consumption by providing tax breaks to the middle class. Agriculture, capital and infrastructure spending, and the manufacturing push could be additional key areas.
Sitharaman, who turns 65 next month, was named India's first permanent female finance minister in 2019 following the clear victory of Prime Minister Narendra Modi for a second term. She has since unveiled six consecutive budgets, along with an interim one in February of this year.
Inputs by Agencies
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