In a momentous session at the Indian Parliament, Finance Minister Nirmala Sitharaman laid out the contours of Budget 2024-25, marking the inauguration of Prime Minister Narendra Modi’s third term. Budget 2024 Highlights not only charts a course for economic recovery but also amplifies the government’s commitment to inclusive growth across nine strategic priorities.
Budget 2024 Highlights: Fiscal Prudence and Targets
Central to Budget 2024 is a stringent fiscal discipline, with the fiscal deficit target for FY25 slashed to 4.5%, showcasing the government’s resolve for financial stability. Sitharaman emphasized a gradual reduction path, aiming to achieve deficits below 4.5% annually from 2026-27 onwards, ensuring sustainable economic growth.
Budget 2024Highlights:Tax Reforms for Economic Stimulus
The budget introduces a revised income tax structure aimed at easing the burden on taxpayers, with significant adjustments in tax slabs that promise an estimated savings of ₹17,500 for many individuals. However, to bolster revenues, the long-term capital gains tax has been raised to 12.5%, impacting investment strategies across asset classes.
Budget 2024 Highlights: Sectoral Allocations and Investments
Key sectors receive substantial allocations to propel growth and development:
- Defence: ₹4,54,773 crore
- Rural Development: ₹2,65,808 crore
- Healthcare: ₹89,287 crore
These investments underscore the government’s commitment to bolstering infrastructure, healthcare, and rural economies, crucial for inclusive development.
Budget 2024 Highlights: Customs Duties
Certain commodities are set to become costlier post-Budget 2024, with hikes in customs duties on items like ammonium nitrate, PVC films, and laboratory chemicals. These adjustments aim to align import costs with domestic production incentives, fostering local manufacturing.
Budget 2024 Highlights: Consumer Relief through Duty Cuts
On the flip side, consumers can expect savings as customs duties are reduced on essential items including mobile phones, precious metals, and cancer drugs. These measures are geared towards enhancing affordability and accessibility for essential goods.
Budget 2024 Highlights: Real Estate and Capital Gains
In a significant policy shift, the budget abolishes indexation benefits on property sales and reduces long-term capital gains tax on real estate transactions to 12.5%. This move aims to streamline taxation in the real estate sector and encourage liquidity flow.
Budget 2024 Highlights: Budget Estimates and Financial Projections
For the fiscal year 2024-25, the government anticipates total receipts amounting to ₹32.07 lakh crore against total expenditures estimated at ₹48.21 lakh crore. Net tax receipts are projected at ₹25.83 lakh crore, reflecting the fiscal calculus underpinning Budget 2024.
Budget 2024 Highlights: Industrial Development and Economic Zones
To boost manufacturing and economic activities across the country, the government plans to establish investment-ready industrial parks in or near 100 cities. This initiative aims to create robust industrial ecosystems, fostering job creation and economic diversification.
Charting India’s Economic Trajectory
Budget 2024 stands as a testament to India’s resilience and determination to navigate challenges while fostering sustainable growth. With strategic investments, targeted reforms, and fiscal prudence, the government aims to steer the nation towards a prosperous future, buoyed by inclusive development and economic resilience.
