India's 2024 Budget: Fostering Economic Growth, Employment, & Promoting Sustainable Development

The 2024 Indian Budget presents a comprehensive plan to enhance economic growth amid global uncertainties. Prioritizing employment creation, skill development, and MSME support, it outlines strategic investments and reforms to sustain India's growth. The budget features significant allocations for education, healthcare, and infrastructure, alongside initiatives to boost agricultural productivity, digitalization, and climate resilience. By blending fiscal prudence with progressive policies, the 2024 Budget aims to promote inclusive development, economic stability, and sustainable growth for all citizens.

Key Highlights:

1. Budget 2024 proposes overhaul of Capital Gains Taxes - Short term gains 20% on all financial assets. On all other assets, it remains as it was. Long term - 12.5% on all assets. Exemption on profits 1.25 lakh a year.

2. Standard Deduction Increased from 50,000 to 75,000.

3. Deduction of Family pension increased from 15K to 25K.

4. The New Slabs in the New Regime in #Budget2024: From 0-3 Lakh - Nil, 3-7 Lakh - 5%, 7-10 Lakh - 10%, 10-12 Lakh - 15%, 12-15 Lakh - 20%, If it’s more than 15 Lakh - 30%.

5. Angel Tax Abolished for All Categories of Investors.

6. STT on F&O increased to 0.2%.

7. FM keeps capex at Rs 11.11 lakh crore or 3.4% of GDP.

8. Capital Expenditure in the Budget: 2019 - ?3.1 Lakh Crore, 2021 - ?4.4 Lakh Crore, 2022 - ?5.5 Lakh Crore, 2023 - ?7.5 Lakh Crore, 2024 - ?10 Lakh Crore, 2025 - ?11.1 Lakh Crore.

9. Fiscal deficit lowered to 4.9% of GDP, market borrowing unchanged at Rs 14.13 lakh crore.

10. Fiscal deficit for FY25 further scaled down to 4.9% from 5.1% in interim Budget.

11. Aim to reach a fiscal deficit of below 4.5% by FY26.

12. BCD on mobile phones, chargers reduced to 15%.

13. Highest Capex Spending proposed to support the economy and job creation.

14. Govt allocates over Rs 3 lakh crore for schemes benefiting women and girls.

15. Limit of Mudra loans to extend to Rs 20 lakh from Rs 10 lakh for those who have availed and paid previous loans. New mechanism announced for facilitating continuation of bank credit to #MSMEs during their stress period.

16. The Budget focuses on employment, skilling, MSMEs, and the Middle class.

17. Detailed roadmap to pursue nine priorities for generating opportunities for India: Agri, Employment, Inclusive development, Manufacturing and Services, Urban Development, Energy, Infrastructure, Innovation, R&D, NextGen reforms.

18. Turning attention to the full year and beyond, in this budget, we particularly focus on employment, skilling, MSMEs, and the middle class. Announced the Prime Minister’s package of 5 schemes and initiatives to facilitate employment, skilling, and other opportunities for 4.1 crore youth over a 5-year period with a central outlay of ?2 lakh crore.

19. ?2 Lakh crore will be spent on youth and skill development over the next 5 years.

20. Digital coverage of farm land and farmers to help farmers get their dues.

21. PM Garib Kalyan Ann Yojna was extended for 5 years benefiting 80 crore people.

22. Govt to provide incentives to 30 lakh youth entering the job market by providing 1 month PF contribution. Govt to launch three employment-linked schemes.

23. Govt to set up working women hostels to promote women participation in the workforce.

24. The PM Vishwakarma Scheme, announced in the Annual Union Budget 2023-24 on 01.02.2023 and launched by the Prime Minister on 17.09.2023, aims to provide end-to-end support to artisans and craftspeople who work with their hands and tools.

25. FM allocated Rs. 1.48 lakh cr for education, employment, and skilling. 5 schemes for 4.1 crore youth with an outlay of Rs. 2 lakh cr over a period of 5 years.

26. We will formulate the plan Purvodaya for all-round development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.

27. Govt to provide e-vouchers directly to 1 lakh students every year with interest subvention of 3% of the loan amount.

28. 1,000 ITIs to be upgraded in a hub and spoke model.

29. Model skilling loan scheme will be revised to facilitate loans up to Rs 7.5 lakh.

30. New centrally-sponsored scheme for skilling in collaboration with states and industry; 20 lakh youth to be skilled over 5 years.

31. The Government will release 109 high-yielding, climate-resilient seeds for 32 field and horticulture crops. ?1.52 lakh crore allotted for agriculture & allied sectors.

32. Govt to set up working women hostels to promote women participation in the workforce.

33. Govt to provide funds to the private sector, domain experts, and others for developing climate-resilient seeds.

34. Employment and skilling: 3 schemes for employment-linked incentives based on EPFO enrolment. Scheme A: First-timers - 1 month wage to all entering the workforce in all formal sectors/eligibility of salary of 1 lakh a month. Scheme B: Job creation in Manufacturing; Additional Employment in Manufacturing to be incentivized EPFO contribution.

35. 100 branches of India Post Payments Bank to be set up in North East.

36. ?2.66L Cr provision made for rural development.

37. Union Budget 2024-25 proposes revision of Model Skill Loan Scheme to help 25,000 students every year.

38. E-vouchers for loans up to Rs. 10 lakh for higher education in domestic institutions to be given directly to 1 lakh students every year for annual interest subvention of 3% of the loan amount.

39. Industrial node at Gaya on Amritsar-Kolkata Industrial Corridor to be developed.

40. On the Amritsar-Kolkata Industrial Corridor, we will support development of an industrial node at Gaya. This corridor will catalyze industrial development of the eastern region.

41. More than 100 branches of India Post Payment Bank to be set up in the North East region.

42. Budget provides Rs 2.66 lakh crore for rural development.

43. Voluntary Closure of LLPs - Much needed, will save late fees and fines.

44. We will formulate a plan 'Purvodaya' for all-round development of the Eastern region of the country, covering Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.

45. MSME Buyers T/o Threshold for mandatory onboarding to TReDS reduced from Rs. 500 Cr to Rs. 250 Cr.

46. The IBC has dissolved more than 1000 companies, resulting in direct recovery of Rs 3.3 lakh cr.

47. Appropriate changes to IBC will be initiated; additional tribunals will be established.

48. Rental housing with dorm-like accommodation for industrial workers will be facilitated in PPP mode.

49. For facilitating term loans to MSMEs, a credit guarantee scheme will be introduced. The scheme will operate on the cooling of credit risks of such MSMEs. A self-financing guarantee fund will provide to each applicant cover of up to Rs 100 crore while loan amounts may be larger.

50. Andhra Pradesh Reorganisation Act - Our govt has made efforts to fulfil the commitments in Andhra Pradesh Reorganisation Act. Recognising the state's need for capital, we will facilitate special financial support through multilateral agencies. In the current FY, Rs 15,000 crore will be arranged with additional amounts in future years.

51. SIDBI to open 24 new branches to serve MSME clusters.

52. Pradhan Mantri Janjatiya Unnat Gram Abhiyan will be launched for improving the socio-economic condition of tribal communities. The scheme will adopt saturation coverage for tribal families in tribal-majority villages and aspirational districts. This will cover 63,000 villages benefiting 5 crore tribal people.

53. Female Labour Force Participation Rate (LFPR) rose to 37% in 2022-2023 from 23.3% in 2017-2018.

54. Women hold 55.6% of PM Jan Dhan Yojana accounts.

55. With the creation of 8.3 million SHGs, 89 million women covered under Deendayal Antyodaya Yojana-NRLM.

56. Under PM Mudra Yojana, 68% loans sanctioned to women and 77.7% women beneficiaries under Stand Up India.

57. Nuclear energy to be an important part of energy requirements.

58. 1 crore farmers across the country will be initiated into natural farming supported by certification and branding.

59. 10,000 need-based bio-input resource centers will be established.

60. Integrated technology platform to be set up for improving the outcomes under Insolvency & Bankruptcy Code.

61. To achieve Aatmanirbharta in pulses & oil seeds, their production, storage, and marketing.

62. Debt recovery tribunals to be strengthened; additional tribunals to be established to speed up recovery.

63. 14 large cities with a population above 30 lakh will have Transit Oriented Development plans.

64. 1 crore urban poor and middle-class families to be covered under PM Awas Yojana Urban 2.0.

65. 100 weekly ‘haats’ or street food hubs in select cities.

66. Investment-ready “plug and play” industrial parks to be developed in or near 100 cities.

67. 12 industrial parks sanctioned under National Industrial Corridor Development Programme.

68. More than 1.

5 crore domestic and foreign tourists expected to visit India annually, with a focus on specific destination improvements.

69. The entire land records and property registration process to be streamlined.

70. Increased allocation for National Infrastructure Pipeline to ?10 lakh crore.

71. Urban Swachh Bharat Mission allocation increased to ?70,000 crore.

72. Urban local bodies to be strengthened with financial and administrative autonomy.

73. FM highlights the importance of green and sustainable infrastructure.

74. Investment in renewable energy sources to be doubled.

75. New policy to support the development of electric vehicle infrastructure.

76. Allocation of ?5,000 crore for clean water and sanitation projects.

77. Government to launch a nationwide campaign to reduce plastic waste.

78. Plans to develop smart cities across the country with advanced technology integration.

79. Additional funding for research and development in the healthcare sector.

80. New initiatives to support start-ups and innovation hubs.

81. Allocation of ?10,000 crore for enhancing digital infrastructure.

82. Expansion of broadband connectivity to rural and remote areas.

83. Strengthening the rural healthcare system with new facilities and equipment.

84. Support for organic farming and sustainable agricultural practices.

85. Investments in educational infrastructure, including new schools and colleges.

86. Development of sports facilities and promotion of sports activities.

87. Support for cultural preservation and promotion of Indian heritage.

88. Enhanced funding for disaster management and relief efforts.

89. New policies to support the growth of the tourism sector.

90. Increased focus on women’s safety and empowerment programs.

91. Initiatives to reduce income inequality and promote inclusive growth.

92. Support for affordable housing projects and urban development.

93. Enhanced funding for climate change mitigation and adaptation.

94. Strengthening public transportation infrastructure and services.

95. Support for clean energy projects and reduction of carbon emissions.

96. Investments in the development of smart grids and energy-efficient technologies.

97. Plans to improve the efficiency of the public sector enterprises.

98. Strengthening the legal framework for intellectual property protection.

99. Support for the development of high-tech industries and innovation centers.

100. Allocation of funds for strengthening national security and defense capabilities.