Union Budget 2024: Key Announcements and Economic Insights

​​Finance Minister Nirmala Sitharaman is set to present her 7th consecutive Budget today, Tuesday, July 23. The Budget for 2024-25 is being viewed as a strategic plan for the Modi 3.0 government, aiming to chart a course for India’s development over the next five years. In this significant Union Budget, Sitharaman is anticipated to announce an increase in the basic exemption limits under the old and new tax regimes, providing substantial relief for the middle class.

Stay with us for all the latest updates and key developments on Union Budget 2024.

Budget 2024 LIVE Update: “Nirmala Sitharaman Allocates ₹1.48 Lakh Crore for Jobs, Education, and Skill Development”

Budget 2024 LIVE Update: 9 Focus Areas: Agriculture, Employment and Inclusive Human Resource Development, Social Justice, Manufacturing and Services, Urban Development, Energy, Innovation and Research, and Next-Generation Reforms.

Budget 2024 LIVE Update: New Employment Scheme for First-Time Workers

The Government of India will offer one month’s wage to all individuals newly joining the workforce across various sectors.

Budget 2024 LIVE Update: New Employment Scheme – 

Finance Minister Nirmala Sitharaman announces that employees and employers will receive incentives at a specified scale during the first four years of employment.

Budget 2024 LIVE Update: The Finance Minister announced a revision of the Model Skill Loan Scheme, enabling loans up to ₹ 7.5 Lakhs with guarantees provided by a government-backed fund.

Budget 2024 LIVE Update: Nirmala Sitharaman announces four expressway and bridge projects valued at ₹26,000 Crore for Bihar.

Budget 2024 LIVE Update: Finance Minister Nirmala Sitharaman announces ₹15,000 crore will be allocated in FY 25 for the development of Andhra Pradesh’s capital, Amaravati.

Budget 2024 LIVE Update: Finance Minister Nirmala Sitharaman announces the introduction of a Credit Guarantee Scheme for MSMEs in the manufacturing sector.

Budget 2024 LIVE Update: The Government Introduces Financial Support for higher education, allocating loans up to ₹10 Lakh.

Budget 2024 LIVE Update: Finance Minister Nirmala Sitharaman allocates ₹26,000 Crore for improving road connectivity projects across India.

Budget 2024 LIVE Update: The Finance Minister declared that the cap for MUDRA loans will be increased from ₹10 lakh to ₹ 20 lakh for individuals who have utilised and successfully repaid loans under the TARUN category.

Budget 2024 LIVE Update: The Finance Minister announces internships at 500 leading companies. Under this internship program, the participants will receive an allowance of ₹5000 and a one-time support of ₹ 6000.

Budget 2024 LIVE Update: The Finance Minister announces establishing a unified technology platform to enhance the efficiency of the Insolvency and Bankruptcy Code (IBC). This initiative ensures uniformity, transparency, and improved oversight for all parties involved, including the National Company Law Tribunal (NCLT).

Budget 2024 LIVE Update: Nirmala Sitharaman announces that rental housing featuring dormitory-style accommodations for industrial workers will be promoted through a Public-Private Partnership (PPP) model with Viability Gap Funding (VGF) support.

Budget 2024 LIVE Update: 3 Crore additional houses to be constructed in rural and urban areas of the country.

Budget 2024 LIVE Update: Under the Pradhan Mantri Awas Yojana-Urban, the housing needs of 10 million low- and middle-income families will be met with an investment of ₹10 lakh crore. This includes central assistance of ₹2.2 lakh crore over the next five years.

Budget 2024 LIVE Update: Stamp Duty Rates May be Reduced

“High Stamp Duty may be lowered, especially for women. This reform will be an essential condition for urban development schemes,” Nirmala Sithraman says.

Budget 2024 LIVE Update: Finance Minister announces that the government will collaborate with the private sector to establish Bharat Small Reactors and advance research with development in nuclear energy technologies. 

The FM also stated that a comprehensive roadmap will be created for hard-to-abate industries, addressing energy efficiency and emission targets.

Budget 2024 LIVE Update: Private Investment in Infrastructure 

The Finance Minister emphasises the government’s commitment to improving private investment in infrastructure. She stated, “This will continue over the next 5 years. This year, I provided ₹11,11,111 crore for CAPEX, which is 3.4% of GDP. We will encourage States to provide support of similar scale for infrastructure development based on their priorities.”

Budget 2024 LIVE Update: The Finance Minister, Nirmala Sitharaman, announces that Phase 4 of the PM Gram Sadak Yojana is set to commence. The scheme aims to deliver all-weather roads to 25,000 rural communities.

Budget 2024 LIVE Update: Finance Minister announces the launch of PM Surya Ghar Muft Bijli, a program to equip 1 crore households with rooftop solar installations.

Budget 2024 LIVE Update: Finance Minister highlights the focus on Space Economy Growth – 

The FM announced that a venture capital fund of ₹1,000 crore will be established for the space economy. She stated, “We will formulate an economic policy framework to delineate the strategy for sustaining high growth with next-generation reforms. These reforms will cover all factors of production, including land, labour, and capital. This will require collaboration between the Centre and the states.”

Budget 2024 LIVE Update: Land-Related Reforms – 

The Budget allocates a substantial portion of the 50-year interest-free loan for collaboration with various reforms. These include land-related reforms in urban and rural regions, addressing land administration, planning, urban development, and building regulations. 

“Rural land-related actions will include assigning a unique Aadhaar for all lands, digitising terrestrial maps, surveying lands, and establishing a land registry. On labour-related reforms, our government will facilitate a range of services for labour, including employment and skilling.”

Budget 2024 LIVE Update: ₹2 lakh crore set aside to provide jobs for 4.1 crore young individuals over the next 5 years.

Budget 2024 LIVE Update: Fiscal Deficit Estimated at 4.9% of GDP –

The net tax revenue for this year is projected to be ₹25.83 lakh crore, with a fiscal deficit estimated at 4.9% of GDP. Gross market borrowings through dated securities are expected to be ₹14.01 lakh crore, while net borrowings are projected at ₹11.63 lakh crore, both lower than the previous year.

Budget 2024 LIVE Update: Finance Minister Nirmala Sitharaman announces that the government will lower the customs duty on gold and silver to 6% and on platinum to 6.4%. Additionally, three more cancer treatment medicines will be exempted from customs duty.

Budget 2024 LIVE Update: The two charity tax exemption systems will be consolidated into a single unified regime.

Budget 2024 LIVE Update: To strengthen the Indian startup ecosystem, the Finance Minister announces abolishing the Angel Tax for all investor categories.

Budget 2024 LIVE Update: The Finance Minister reveals updates to the new tax regime, proposing an increase in the standard deduction from ₹50,000 to ₹75,000.

Budget 2024 LIVE Update:

Huge relief for tax payers. Changes in the New Tax Regime Slab:

Based on the new tax regime, salaried employees are to save ₹17,500 annually in taxes.

Budget 2024 LIVE Update: The Finance Minister presented the Finance Bill to the Lok Sabha. The Budget Session is now adjourned until 11 a.m. on July 24.

Key Takeaways from Budget 2024-25

Finance Minister Nirmala Sitharaman emphasised that the Budget will prioritise employment, skill development, MSMEs, and the middle class. For the same, a sum of ₹1.48 Lakh Crore has been allocated for education, employment, and skill enhancement.

The Finance Minister outlined nine key priorities for the Budget:

1. Productivity and resilience in agriculture
2. Employment and skilling
3. Inclusive human resource development and social justice
4. Manufacturing and services
5. Support for the promotion of MSMEs
6. Urban development
7. Energy security
8. Infrastructure
9. Innovation, research and development

Income Tax

• The government has raised the Standard Deduction limit to ₹75,000, enabling salaried individuals to save up to ₹ 17,500 on taxes under the new policy. This adjustment, an increase from the previous ₹ 50,000, was expected by many, with some hoping for a hike to ₹ 1 Lakh.

Investment Tax

• Short-term gains on certain financial assets will now incur a 20% tax.
  
• Long-term capital gains on financial and non-financial assets will be taxed at 12.5%.
  
• Unlisted bonds, debentures, debt mutual funds, and market-linked debentures will be subject to taxation based on the applicable income tax slab rate.

Banking/ Insurance Sector

• The Mudra loan cap has been raised to ₹20 Lakh. 
• SIDBI plans to establish new branches over the next three years to support MSMEs better.

Housing Sector

• Construction of 3 Crore new homes in both rural and urban regions.
• Dormitory-style rental housing specifically designed for industrial workers.
• Allocation of ₹10 Lakh Crore for urban poor housing development.
  

Education Sector

• Over the next five years, 20 lakh young individuals will receive skill development training.
• Students can avail higher education loans of up to ₹ 10 Lakh for colleges in India.

Healthcare Sector

• Three additional cancer treatment medications are now exempted from customs duty.

Infrastructure

• A capital expenditure allocation of ₹ 11.11 lakh crore has been designated for the fiscal year 2025.
  
• Eastern India will see the construction of new expressways with an investment of ₹ 26,000 Crore.
  
• New airports and medical colleges are to be developed in Bihar.

Excise/ Custom Duty

• The customs duty on gold and silver has been lowered to 6%, while the duty on platinum is now 6.4%. 
• Additionally, customs duty has been waived on 25 essential minerals, with reduced rates on two specific minerals. 
• The customs duty on mobile phones, their components, and chargers has been reduced to 15%.

Economy of the Country

• Fiscal 2025 projected total receipts, excluding borrowings, are ₹ 32.07 Lakh Crore. 
• The fiscal deficit is expected to be 4.9% of GDP for fiscal 2025. 
• Net tax revenues are estimated at ₹ 25.83 Lakh Crore, and overall expenditures amount to ₹ 48.21 Lakh Crore.

Land Reforms

• Measures for rural land management will include assigning unique identification numbers to land parcels. 
• Urban land records will be digitised using GIS mapping technology.

Labour/ Employment Sector

• One-month salary for new formal sector employees.
  
• ₹ 5,000 stipends for internships, plus a one-time grant of ₹ 6,000
  
• New initiative to promote internships in 500 leading companies.

Energy Sector

• Surya Ghar Muft Bijli Scheme Solar Panels for 1 Crore Houses.
• The government will collaborate with the private sector to establish ‘Bharat Small Nuclear Reactors’.

What’s Cheaper vs What’s Expensive?

The Union Budget 2024 brought mixed news for consumers. While some items got a price cut, others are set to become more expensive. Let’s break down what’s becoming cheaper and what’s costing more.