Indian Budget 2024: Big changes in Tax Slabs

The Indian Budget 2024, presented by the Finance Minister, marks a significant milestone in the country’s economic policy. With a focus on inclusive growth, infrastructure development, and technological advancement, this budget aims to propel India towards becoming a $5 trillion economy. In this blog, we delve into the key highlights, sectoral allocations, and the government's strategic focus areas.

Key Highlights of Indian Budget 2024

The Indian Budget 2024 has been crafted with a vision to foster economic stability and growth. Here are some of the key highlights:

Fiscal Deficit: The fiscal deficit is projected to be 5.9% of GDP, aiming for a gradual reduction to 4.5% by FY26.
Taxation: Major changes include increased income tax slabs and reduction in corporate tax rates to boost business sentiments.
Healthcare: An allocation of ₹3.37 lakh crore to improve healthcare infrastructure and accessibility.
Education: ₹1.25 lakh crore allocated for the education sector to enhance quality and infrastructure.
Infrastructure: Massive investment of ₹10 lakh crore in infrastructure projects to create jobs and boost economic activity.
Agriculture: ₹2.8 lakh crore allocated to support farmers and promote sustainable agricultural practices.

Sectoral Allocations and Initiatives

1. Infrastructure Development

The government has prioritized infrastructure development with a record allocation of ₹10 lakh crore. Key initiatives include:

National Infrastructure Pipeline (NIP): Continued focus on NIP with over 7000 projects in the pipeline.
Urban Infrastructure: ₹60,000 crore allocated for urban infrastructure development, including smart cities and urban transport.
Road and Rail Connectivity: Significant investments in expanding and modernizing road and rail networks.

2. Healthcare Sector

Recognizing the importance of healthcare, the budget allocates ₹3.37 lakh crore to this sector. Major initiatives include:

PM Atmanirbhar Swasth Bharat Yojana: Launch of a new scheme to develop capacities of primary, secondary, and tertiary care health systems.
Vaccination Drive: Continued support for COVID-19 vaccination and booster doses.
Telemedicine: Expansion of telemedicine services to improve healthcare access in rural areas.

3. Education Sector

The education sector receives a substantial boost with ₹1.25 lakh crore allocation. Key focus areas include:

National Education Policy (NEP): Implementation of NEP with emphasis on digital and skill-based education.
Higher Education: Establishment of new universities and institutes of excellence.
School Education: Modernization of schools and introduction of new learning methodologies.

4. Agriculture and Rural Development

With ₹2.8 lakh crore allocated, the agriculture sector aims to enhance farmers’ income and promote sustainable practices. Key initiatives include:

PM-KISAN Scheme: Continued financial support to farmers under the PM-KISAN scheme.
Sustainable Agriculture: Promotion of organic farming and sustainable agricultural practices.
Rural Infrastructure: Development of rural infrastructure, including roads, housing, and sanitation.

5. Technology and Innovation

Technology and innovation receive a strong push with significant investments in digital infrastructure and R&D:

Digital India: Expansion of the Digital India initiative to improve internet connectivity and digital literacy.
Research and Development: Increased funding for R&D in emerging technologies like AI, IoT, and blockchain.
Start-up Ecosystem: Support for start-ups through various schemes and incentives.

Taxation Reforms

The Budget 2024 introduces several taxation reforms aimed at simplifying the tax regime and encouraging compliance:

Income Tax: Revision of income tax slabs to provide relief to taxpayers.
Corporate Tax: Reduction in corporate tax rates to stimulate business growth.
GST Reforms: Simplification of GST filing processes and rationalization of rates.

Social Welfare Initiatives

The government has also focused on social welfare with various initiatives aimed at improving the quality of life for all citizens:

Women Empowerment: Schemes to support women entrepreneurs and improve female workforce participation.
Skill Development: Programs to enhance skill development and employability of the youth.
Poverty Alleviation: Continued efforts to reduce poverty and improve living standards through various welfare schemes.

Environmental Sustainability

Environmental sustainability remains a key focus with significant investments in green projects and renewable energy:

Renewable Energy: Increased funding for solar, wind, and other renewable energy projects.
Climate Change Mitigation: Initiatives to address climate change and promote sustainable practices.
Clean Air and Water: Programs to improve air and water quality across the country.

Conclusion

The Indian Budget 2024 is a forward-looking budget that aims to address immediate economic challenges while laying the foundation for long-term growth. With a strong emphasis on infrastructure, healthcare, education, and technological innovation, this budget has the potential to transform India into a global economic powerhouse. By focusing on inclusive growth and sustainable development, the government is taking decisive steps towards building a prosperous and resilient nation.

As the implementation of these budgetary allocations and initiatives unfolds, it will be crucial to monitor their impact on the ground. The success of the Indian Budget 2024 will depend on effective execution and the ability to adapt to emerging challenges and opportunities.