Indian Union Finance Minister Nirmala Sitharaman read out the Union Budget 2024 – 25 on July 23rd, 2024. This was her seventh time doing a union budget and her first activity since the re-election of the BJP-led NDA government in June. The areas targeted by this budget are employment generation, skills development, MSME support and middle-class welfare among others. Let us look at some of its main features.
Key Priorities
- Ms Sitharaman highlighted nine main areas of focus for the budget:
- Helping farmers grow more and better crops.
- Creating more job opportunities and training programs.
- Inclusive Human Resource Development and Social Justice, ensuring fair opportunities for all citizens.
- Boosting industries to produce more goods and services.
- Assisting small and medium-sized businesses.
- Building better roads, bridges, and other public works
- Ensuring dependable and sustainable energy sources
- Constructing improved public works such as bridges and highways.
- Fostering cutting-edge concepts and innovations in technology.
Focus on Youth and Jobs
A significant part of the budget is aimed at creating jobs and providing skill training. Three new employee-linked incentive schemes were introduced. These schemes will help first-time employees by linking their enrollment with the Employee Provident Fund Organisation. Employers will also get support under these schemes.
Additionally, the government announced a comprehensive internship program. This program will place 1 crore youth in 500 top companies over the next five years, giving them real-life business experience for 12 months.
Education and Loans
For students, especially those who haven’t benefited from government schemes before, the budget offers support loans of up to ₹10 lakh for education in Indian institutions. E-vouchers will be provided to 1 lakh students each year for interest subvention of 3% on these loans.
Support for States
The budget includes special plans for the development of eastern states like Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh under a larger project called “Purvodaya.”
In Bihar, the government will invest ₹26,000 crore to build new expressways, power projects, airports, medical colleges, and sports infrastructure. Andhra Pradesh will receive funds for developing basic infrastructure like water, power, and roads. This support is part of the Andhra Pradesh Reorganisation Act.
Benefits for Women
Promoting women-led development is another key focus, with over ₹3 lakh crore allocated for schemes benefiting women and girls. This aims to empower women and promote gender equality.
Boosting MSMEs
The budget also places significant emphasis on MSMEs. A new assessment model for MSME credit will be introduced. This model will rely on the digital footprint of businesses rather than just their assets and turnover, making it easier for MSMEs to get loans.
Revised Income Tax Structure
For the lower middle class, the Finance Minister communicated a revision of the income tax slabs in the new regime. Despite stagnant tax rates, the dimension of each income bracket has undergone change. For instance, the 5 percent tax bracket was enlarged from ₹3-6 lakh to ₹3-7 lakh allowing individuals receiving salary an opportunity to evade up to ₹17,500 in terms of income taxes.
Union Budget 2024 aims at more job opportunities, supporting small businesses and providing benefits to the middle class and women. The Government is trying to generate economic growth and make sure that development is inclusive across the country by concentrating on these areas.
