Finance Minister Nirmala Sitharaman Speaks About Union Budget 2024-25
Nirmala Sitharaman announces a package of five schemes for education, skilling and employment with an outlay of INR 2 lakh crore.
A detailed roadmap for Vikshit Bharat is delivered through the budget, says Nirmala.
For farmers, the government announced higher MSP in June for all major crops. The PM Garib Kalyan Anna Yojana was extended for five years to benefit more than 80 crore people.
She further explains that administrative actions for the approval and implementation of various schemes announced in the interim budget are going on.
The financing support for farmers will be facilitated through NABARD.
1.52 lakh crore allocation for agriculture and allied sector
Employment-linked incentive schemes will be rolled out to support employees and employers.
1 month wage to all workers entering the formal workforce
The government focus on women participation in the workforce through collaboration with industries, says Nirmala
25,000 youth to be skilled over the next five years.
The model skill loan will be revised to INR 7.5 lakh crore through a guarantee by the government-promoted fund, a monumental announcement by the FM.
Government announces loan support of up to Rs 10 lakh for higher education.
Multilateral development banks will be fast tracked to develop Bihar’s infrastructure on the request of the state government.
Formulated a package for financing and regulatory changes for MSMEs involved in India’s manufacturing sector.
Guarantee cover worth up to INR 1 crore for MSMEs, says FM.
Bank credit for MSMEs with stressed accounts will help them continue business and overcome the NPA crisis.
Mudra loan for entrepreneurs who have previously repaid the loan under ‘Tarun’ category.
Setting up of 100 food quality and testing labs
12 industrial parks under the national corridor development program will also be sanctioned, says Nirmala
Integrated technology for IBC ecosystem will be launched to improve banking efficiency.
Appropriate changes to the IBC and tribunal under the Companies Act.
The government will facilitate the development of cities, utilising town planning schemes.
PM Surya Garg Muft Bijli Yojana has been launched to install rooftop solar plants to enable 1 crore households avail free electricity. It received a remarkable response with 15 lakh applications.
800 megawatt commercial plant using advanced technology will be on to make this project a grand success.
Fiscal support for infratsure for the next five years.
INR 11 lakh crore for infratructure.
A provision for 5.5 lakh crore ensuring interest-free loan for infrastructure development.
Vishnubad Temple and Bodh Gaya Temple of Bihar will be supported on lines Kashi Vishwanath temple, fostering world-class tourism experience.
FM announces to revive the Nalanda University and Odisha’s scenic beauty, crastsmanship and sanctuaries.
INR 1000 crore fund will be set up for the space research.
A scheme for promoting for all factors of production will be launched by the government, says FM.
Interest-free loan for land-related reforms, both in rural and urban areas, will be implemented.
Shram Suvidha and Samadhan portal will be revamped for ease of compliance for industries and trade.
Rules for foreign direct investment and overseas investment will be simplified, says Hon’ble FM
Adoption of technologies for digitalisation of economy.
Fiscal deficit is defict is pegged at 4.9% of the GDP.
Custom Duty Announcements
Medicine & medical equipment for cancer patients are exempted from custom duty
BCD on mobile chargers reduced to 15%
Custom duty exemption on 25 critical minerals and reduce BCD on two minerals
Expand the list of exempted capital goods for use in solar panels
Reduce BCD on real down-filling materials from duck
Reduce custom duty on gold and silver to 6% and those on platinum to 6.4%
NIL BCD for nickel cathode
Remove BCD, subject to conditions, on oxygen-free copper
BCD raised to 25%on plastics and PVCs
Direct Tax Announcements
Two tax exemption regimes for charity are to be merged into one.
TDS rate on e-commerce operates to be reduced to 0.1%
Standard operating procedure for TDS defaults
Provisions for reopening and reassessment for taxpayers
Capital gains taxation is simplified
Long-term gains of financial and non-financial assets will attract a tax rate of 12.5%
Listed financial assets held for more than a year will be classified as long-term
Debt mutual funds and market-linked debentures will continue to attract tax at applicable rates.
Abolishment of angel tax for all investors
Simple tax regime for foreign shipping companies with domestic operations in India
Safe harbour rates for foreign companies selling raw diamonds in India
Corporate tax rate for foreign companies reduced from 40% to 35%
Tax on income received on buyback of shares
Standard deduction raised to INR 75,000 from INR 50,000 under the new tax regime
Proposed tax rates under the new regime are as follows
| Income Slab | Tax Rates |
| 0-3 Lakh | NIL |
| 3-7 Lakh | 5% |
| 7-10 Lakh | 10% |
| 10-12 Lakh | 15% |
| 12-15 Lakh | 20% |
| Above 15 Lakh | 30% |
Overview of the Budget Expectations
The Finance Minister Nirmala Sitharaman has presented the Union Budget 2024-25. This is her seventh straight budget. The Union Cabinet meeting concluded as PM Modi heads to the parliament. India has its eyes on income tax exemptions amid high inflation. Inflation jumped to 5.08% in June 2024. The high market cap to GDP ratio as highlighted by the economic survey is a bone of contention for the government. There’s a high anticipation that the government will drive infrastructure projects through a public-private partnership model.
What will the finance minister announce on education, infrastructure, green energy and others? It will be interesting to see. Let’s check her announcements on tax, jobs, etc.
