The Union Budget is an annual financial statement presented by the Finance Minister of India to the Parliament. It outlines the government’s estimated revenue and expenditure for the upcoming fiscal year. Here are some key areas that are typically addressed in the Union Budget:   

The Union Budget 2024-25, presented by the Government of India, outlines a comprehensive plan to drive economic growth, enhance infrastructure, and improve the quality of life for its citizens. This article delves into the key highlights of the budget, addressing common queries and providing an in-depth analysis of its various components.

Introduction

The Union Budget serves as the financial blueprint for India’s development, detailing the government’s revenue and expenditure for the upcoming fiscal year. The 2024-25 budget focuses on sustainable growth, social welfare, and infrastructural development, aiming to position India as a leading global economy.

Fiscal Overview

Total Expenditure: The budget estimates a total expenditure of ₹45.03 lakh crore, reflecting the government’s commitment to various developmental projects and welfare schemes.

Fiscal Deficit: The fiscal deficit is projected at 4.9% of GDP, with a target to reduce it below 4.5% in the subsequent year, indicating a focus on fiscal consolidation.

Taxation Reforms

Personal Income Tax: The budget introduces changes in the personal income tax structure under the new tax regime:

Income up to ₹3 lakh: Nil

₹3 lakh to ₹7 lakh: 5%

₹7 lakh to ₹10 lakh: 10%

₹10 lakh to ₹12.5 lakh: 15%

₹12.5 lakh to ₹15 lakh: 20%

Above ₹15 lakh: 30%

Additionally, the standard deduction for salaried employees has been increased from ₹50,000 to ₹75,000 for those opting for the new tax regime. 

Corporate Tax: No significant changes have been made to the corporate tax rates, maintaining stability for businesses.

Agriculture and Allied Sectors

Budget Allocation: An allocation of ₹1.52 lakh crore has been made for agriculture and allied sectors, emphasizing the government’s focus on rural development. 

High-Yielding Crop Varieties: The introduction of 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops aims to boost agricultural productivity.

Natural Farming Initiatives: Plans to initiate 1 crore farmers into natural farming over the next two years, with certification and branding support, are set to promote sustainable agricultural practices.

Infrastructure Development

Transportation: Significant investments are planned for the expansion and modernization of roadways, railways, and airports to improve connectivity across the nation.

Urban Development: The budget proposes the development of smart cities and urban infrastructure to accommodate the rapidly urbanizing population.

Economic Growth and Development:

Infrastructure Development: Increased allocation for infrastructure projects such as roads, railways, and airports is crucial for economic growth and job creation.   

Investment in key sectors: Focus on sectors like manufacturing, renewable energy, and technology to boost economic growth and create employment opportunities.   

Skill Development: Emphasis on skill development programs to enhance the employability of the workforce and address the needs of the changing job market.   

Fiscal Consolidation:

Fiscal Deficit: The government aims to maintain a sustainable fiscal deficit while ensuring adequate public spending for development.

Revenue Mobilization: Strategies to increase government revenue through tax reforms, efficient tax collection, and broadening the tax base.   

Social Sector Development:

Healthcare: Increased allocation for healthcare infrastructure, research, and public health programs to improve access to quality healthcare for all citizens.   

Education: Focus on improving the quality of education at all levels, including primary, secondary, and higher education.

Social Security: Strengthening social security programs for the elderly, disabled, and other vulnerable sections of society.

Agriculture and Rural Development:

Support for farmers: Measures to support farmers, such as increasing minimum support prices for crops, promoting agricultural technology, and improving rural infrastructure.   

Rural Development: Focus on rural development initiatives, including improving rural connectivity, providing access to basic amenities, and generating employment opportunities in rural areas.

Taxation:

Tax Reforms: The government may consider tax reforms to simplify the tax system, reduce tax burdens, and boost economic growth.   

Direct Taxes: Changes in income tax rates, tax slabs, and deductions may be announced.   

Indirect Taxes: Modifications to Goods and Services Tax (GST) rates or structures may be considered.   

Other Key Areas:

Defense: Allocation for defense expenditure to strengthen national security.

Financial Sector Reforms: Measures to strengthen the financial sector and promote financial inclusion.

Environmental Concerns: Initiatives to address environmental challenges such as climate change and pollution.   

Key Expectations for Budget 2024-25:

Focus on Growth: The budget is expected to prioritize economic growth and job creation in the aftermath of the pandemic.   

Fiscal Discipline: Maintaining fiscal discipline while balancing the need for social and economic development will be crucial.

Social Sector Reforms: Increased focus on social sector development, including healthcare, education, and social security.

Addressing Inflation: Measures to address inflationary pressures and stabilize prices.   

Technological Advancements: Emphasis on promoting technological advancements and digitalization across various sectors.

FAQs

What are the key highlights of the Union Budget 2024-25?

This will be answered once the budget is presented.

What are the major tax proposals in the budget?

Potential changes to income tax slabs, corporate tax rates, or indirect taxes like GST could be announced.

What are the government’s plans for infrastructure development?

Expect announcements on new infrastructure projects, funding for existing projects, and measures to improve connectivity.

What are the key initiatives for job creation and employment?

The budget may include measures to boost employment in key sectors, such as manufacturing, tourism, and the digital economy.

What are the government’s plans for the agricultural sector?

Expect announcements on measures to improve agricultural productivity, enhance farmer incomes, and promote rural development.

How will the budget address inflation and price rise?

The government may announce measures to control inflation and ensure price stability.

What are the government’s plans for social sector development?

Expect announcements on investments in education, healthcare, and social security programs.

How will the budget impact the fiscal deficit?

The budget will likely outline the government’s fiscal deficit target for the year.

When will the Union Budget 2024-25 be presented?

The Union Budget is typically presented in the first half of February each year.

Where can I find the complete budget documents?

The complete budget documents will be available on the official website of the Ministry of Finance, Government of India.

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