Finance Minister Nirmala Sitharaman presented the Budget for the fiscal year 2024-25 on Tuesday, marking her seventh consecutive presentation and surpassing the record previously held by former Prime Minister Morarji Desai. This Budget, the first under Prime Minister Narendra Modi's third term, was presented in the Lok Sabha.

Sitharaman emphasized the continued trust of the Indian populace in the Modi-led government, as evidenced by their re-election for a third term. Despite global economic uncertainty, India's economic growth remains robust. She highlighted that the country's inflation rate is steadily approaching the target of 4 per cent, with the core inflation rate currently at 3.1 per cent.

India, currently the world’s fifth largest economy, is on track to become the third largest in the coming years. Ahead of the Budget 2024 presentation, Prime Minister Narendra Modi stated that India is the fastest-growing major economy globally and that Budget 2024 will further the vision of a ‘Viksit Bharat’ (Developed India) by 2047. Here's a detailed coverage on Union Budget 2024, including key announcements and expert analysis :

On a positive note, India's inflation rate is still steady and approaching the 4% target. The finance minister stated that MSMEs, employment, and skill development will continue to be the budget's primary priorities while addressing the parliament.

 - To spur growth, the budget suggests major advantages for both new and extra employment opportunities. Three plans are being introduced, one of which offers first-time employees a monthly wage of up to Rs. 15,000 and a salary of up to Rs. 100,000. The benefit will be paid out in three installments.

Bihar's road projects will receive a total of Rs 26,000 crore from the Union government, according to Finance Minister Nirmala Sitharaman's announcement in her Budget for 2024–25. The Center will work with multilateral development agencies to acquire funding for the state.

The government intends to build airports, medical schools, and sports facilities in Bihar in addition to constructing roads. Additionally, in order to promote all-around development in Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh, the Center will create a comprehensive plan known as "Purvodaya."

The government will also assist in the creation of an industrial corridor in the eastern area. The finance minister also declared that 1 lakh students would receive e-vouchers directly from the government each year, coupled with a 3% interest subsidy on their loan balance.

₹11 lakh crore has been set aside by the central government for capital expenses related to the development of infrastructure. This corresponds to 3.4% of our GDP. Viability gap financing and supportive legislation will encourage private sector investment in infrastructure," she stated.

According to her, the government will give incentives to 30 lakh young people who are starting their careers in the form of a single monthly PF payment. She said, "The government will establish hostels for working women."

• The finance minister announced that 1,000 ITIs will be renovated using a hub-and-spoke arrangement.
• Up to ₹10 lakh in loans would be supported financially by the government for higher education at domestic institutions.
• According to Nirmala Sitharaman, term loans to MSMEs will be made easier with the introduction of a credit guarantee program. "The program will work to reduce these MSMEs' credit risks. Each applicant would receive coverage of up to ₹100 crore from a self-financing guarantee fund, albeit the loan amount may be higher," the spokesperson stated.
• A direct benefit transfer up to ₹15,000 in three installments of one month's salary would be given to first-time employees who have registered with the EPFO. A monthly salary of ₹1 lakh will be the upper limit for eligibility. 210 lakh youth will benefit from the program.

• "The government will introduce a program to offer internship opportunities to one crore youth in 500 premier companies, along with a one-time assistance of ₹6,000 and a monthly internship allowance of ₹5,000."
• The government wants to lower the basic customs duty on smartphones and their chargers to 15%. It also wants to lower the customs duty on gold, silver, and platinum to 6% and 6.4%, respectively.

• For individuals who chose to adopt the new tax structure, the government has modified the standard deduction for income taxes. "For those opting for the new tax regime, the standard deduction for salaried employees to be increased from ₹50,000 to ₹75,000," she stated.

• For those who choose to use the new system, the finance minister changed the tax slabs. She declared, "The tax rate structure will be revised under the new tax regime as follows: ₹0-₹3 lakh -Nil; ₹3-7 lakh -5%; ₹7-10 lakh-10%; ₹10-12 lakh-15%; 12-15 lakh - 20% and above ₹15 lakh-30%."

• According to Nirmala Sitharaman, the reforms suggested in the Budget will result in salaried employees saving up to ₹17,500 in taxes annually under the new tax regime.

• According to Nirmala Sitharaman, seniors' family pension deduction will increase from ₹15,000 to ₹25,000. The improvements are expected to benefit 4 crore salaried persons and pensioners in total.

• Nirmala Sitharaman also announced benefits for the home states of BJP allies Nitish Kumar and N Chandrababu Naidu, Bihar and Andhra Pradesh, in her budget address. The two leaders have been clamoring for their own states to be granted a unique status.

• "Andhra Pradesh Reorganisation Act: The government has endeavored to meet the obligations outlined in this legislation. Acknowledging the state's requirement for capital, we will enable specific financial assistance via multilateral organizations. ₹15,000 crore will be set aside in the current fiscal year, with further funds in subsequent years," the speaker stated.

• We will back the establishment of an industrial nod in Gaya, Bihar, along the Amritsar-Kolkata industrial corridor. It will spur the eastern region's development. We'll also help with the construction of the Patna-Purnea motorway, the Buxar-Bhagalpur highway, the Bodhgaya- Rajgir-Vaishali-Darbhanga highway, and a second, 26,000 crore, two-lane bridge across the Ganga in Buxar," she continued.

2024 Budget Speech: A Real-Time Analysis

• The Minister of Finance declared that boosting the number of women employed will be a top goal. This will be accomplished by establishing hostels and forming alliances to plan skill-building initiatives tailored to women.
• According to Sitharaman, persons who have previously taken out and repaid loans under the Mudra program will now be eligible for loans up to ₹20 lakh instead of just ₹10 lakh.
• For Purvodaya, a strategy for the comprehensive development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh would be developed. She mentioned the Patna-Purnya motorway, the Buxar-Bagalpur motorway, the Bodhgaya-Rajgir-Vaishali-Darbanga spurs, and the additional 26,000crore two-lane Ganga bridge at Baksar. Power projects, such as the ₹21,400crore 2400 MW power plant at Pir Payanti, are being undertaken.

Impactful Steps Taken & Proposals Made

• FM proposed a ₹2.2 lakh crore initiative to lower the cost of urban housing.

• Hostels for working women will be established. The promotion of a higher rate of female workforce participation through hostels and creches. Our government will introduce the National Cooperation Policy for general growth. Our government would cover the cost of loans up to Rs. 10 lakh for students attending domestic universities for higher education.

• With the installation of rooftop solar panels, the PM Suryaghar Muft Bijli Yojana would enable 1 crore homes to receive free power up to 300 units each month.

• A significant step toward investing in the development of human capital was taken when the government set aside ₹1.48 lakh crore in the 2024–25 budget for employment, education, and skill development. This significant investment, made through EPFO, demonstrates that the government acknowledges the connection between work, education, and skills.

Key Notes

The Union Budget for 2024-25 presents a multifaceted approach to India's economic development, balancing fiscal prudence with ambitious growth targets. This budget, characterized as empowering for the new middle class by Prime Minister Modi, introduces several significant measures across various sectors.

The revision of tax slabs and increased standard deduction under the new tax regime brings relief to taxpayers, potentially stimulating consumer spending. The focus on youth empowerment through internship opportunities and employment initiatives signals a forward-looking approach to workforce development.

Education and skill development receive substantial attention, with financial support for higher education loans and skilling programs. This investment in human capital is likely to yield long-term dividends for the economy and enhance India's competitive edge in the global market.

The healthcare sector stands to benefit from the exemption of custom duty on cancer medicines, which could improve accessibility to critical treatments and potentially impact the insurance sector positively.

Infrastructure development remains a cornerstone of the government's economic strategy, with significant allocations for railways, roadways, and urban housing. This focus is expected to have a multiplier effect, boosting allied industries such as steel, cement, and electric vehicles.

The MSME sector, often called the backbone of the Indian economy, receives targeted support through increased Mudra loan limits and the establishment of e-commerce export hubs. These measures, along with the abolition of Angel Tax, are poised to invigorate the start-up ecosystem and promote entrepreneurship.

The budget's emphasis on green and renewable energy, particularly solar power, aligns with global sustainability goals and positions India as a responsible player in climate action. The investment in nuclear energy research through the Bharat Small Modular Reactor project opens new avenues in the energy sector.

Agriculture, a critical sector for India's economy, sees the integration of digital public infrastructure, which could revolutionize farming practices and improve productivity. The promotion of organic farming through bio-input units demonstrates a commitment to sustainable agricultural practices.

The government's vision of 'Viksit Bharat 2047' encompasses nine key sectors, indicating a holistic approach to national development. This long-term perspective, coupled with immediate actionable plans, sets a clear roadmap for India's economic future.

However, the budget also introduces certain cost increases, particularly in sectors like plastic products and telecom equipment. These measures may be aimed at promoting domestic production or addressing environmental concerns, but could potentially lead to short-term price pressures in some areas.

In conclusion, the 2024-25 budget presents a balanced approach to economic growth, focusing on key areas such as infrastructure, human capital development, and technological innovation. While it addresses immediate economic needs, it also lays the groundwork for long-term sustainable development. The success of these initiatives will depend on effective implementation and the ability to navigate global economic challenges. As India moves forward, this budget could serve as a crucial stepping stone towards achieving its vision of becoming a developed nation by 2047.