FM Nirmala Sitharaman’s Budget 2024: Major Job and Tax Announcements
Today, Finance Minister Nirmala Sitharaman delivered her seventh consecutive Budget in Parliament, which included substantial initiatives designed to stimulate employment growth and alleviate tax burdens. This Budget establishes an essential roadmap for India’s development over the next five years under the Modi 3.0 government.
Significant Announcements
Schemes for Employment:
Various initiatives were implemented by the Finance Minister with the objective of fostering job creation and skill development among young people. Some of the most significant points are:
Over the course of the next five years, there will be comprehensive apprenticeship programs available for one million young people at top-tier companies.
Employment-related incentives, such as one month’s wage support for new employees.
Enhanced skill-building initiatives that are specifically designed to increase the participation of women in the workforce.
Tax Reforms:
Nirmala Sitharaman revised the tax slabs under the new tax framework, increasing the standard tax deduction from ₹50,000 to ₹75,000. The percentages of the previous tax regime have not been altered. Salaried personnel are anticipated to save up to ₹17,500 annually in taxes as a result of this revision.
Customs Duty Reductions: The Budget announced substantial reductions in customs duties for cancer medicines, mobile phones, imported gold, silver, leather goods, and seafood, thereby rendering these items more affordable.
Tax Slabs Revised Under the New Regime
Up to ₹3,00,000: None
₹3,00,001 to ₹7,00,000: 5%
₹7,00,001 to ₹10,00,000: 10% ₹10,00,001 to ₹12,00,000: 15%
₹12,00,001 to ₹15,00,000: 20% In excess of ₹15,00,000: 30 percent
Additional Points from the Budget Speech Economic and Fiscal Objectives:
The fiscal deficit for FY25 is anticipated to be 4.9% of GDP.
The capital expenditure remains at ₹11.1 lakh crore, which is consistent with the interim budget.
Infrastructure expenditures are estimated to account for 3.4% of GDP.
Sector-Specific Allocations:
Agriculture and Rural Development: ₹1.52 lakh crore for the agriculture and allied sectors.
Urban Housing: The central government is contributing ₹2 lakh crore, and the budget for PMAY Urban Housing 2.0 is ₹10 lakh crore.
Defense: The defense budget is allocated ₹4.56 lakh crore.
Incentives for Manufacturing and Micro, Small, and Medium Enterprises (MSMEs
A credit guarantee initiative for MSMEs and an increase in the limit of Mudra loans from ₹10 lakh to ₹20 lakh.
Special incentives for the creation of jobs in the manufacturing sector, such as EPFO contributions for new employees.
Education and Healthcare:
The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) has been allocated an additional ₹7,200 crore.
Financial assistance for education loans of up to ₹10 lakh for higher education at domestic institutions.
Regional Development and Infrastructure:
Financial assistance for the administration of floods in Himachal Pradesh and Assam.
Development of industrial corridors and road connectivity initiatives in Bihar.
Energy and the Environment:
The launch of the PM Surya Ghar Muft Bijli initiative is intended to install rooftop solar systems in one million households.
The Critical Mineral Mission is responsible for the acquisition of essential minerals from overseas and the recycling of these minerals.
Market Responses
The Indian equity markets experienced substantial volatility as a result of the announcement. At 12:04 PM, the BSE Sensex was trading at 80,340.45, down 161.63 points, and the NSE Nifty50 was trading at 24,457.80, down 51.45 points.
Expert Opinions P Chidambaram: Senior Congress leader P Chidambaram observed that the employment-linked incentive schemes are similar to those described in the Congress manifesto.
Market Analysts: The revised tax slabs and the increase in standard deductions are anticipated to have a substantial positive impact on salaried individuals and pensioners, thereby fostering increased consumer spending and disposable income.
The 2024 Budget is designed to promote economic growth and development by emphasizing tax relief, sector-specific allocations, and employment. The government’s dedication to promoting progress and guaranteeing the well-being of all citizens is evident in the initiatives that Finance Minister Nirmala Sitharaman has announced.
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