Report on the Indian Union Budget 2024

The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman on July 23, 2024, marks a significant milestone in India’s economic journey. This budget, the first during Prime Minister Narendra Modi’s third term, outlines a detailed roadmap for achieving ‘Viksit Bharat’ by 2047, envisioning a prosperous and inclusive India¹.

Overview

The Indian Union Budget 2024 aims to strike a balance between fiscal prudence and growth by focusing on infrastructure development, social welfare, green initiatives, and technological advancements. The budget aims to reduce the fiscal deficit while promoting economic growth and stability.

Key Highlights

1. Economic Growth and Stability
   • India’s economic growth continues to shine amidst global policy uncertainties. The country’s inflation is stable, moving towards 4%, with core inflation at 3.1%¹.
   • The Revised Estimate of total receipts, excluding borrowings, stands at ₹32.07 lakh crore, while total expenditure is estimated at ₹48.21 lakh crore¹.
2. Capital Expenditure
   • The government has allocated ₹11.11 lakh crore for capital expenditure, maintaining the same level as the Interim Budget 2024-24¹. This investment is crucial for infrastructure development and economic growth.
3. Nine Priorities for Development
   • The budget focuses on nine key priorities: productivity, jobs, social justice, urban development, energy security, infrastructure, innovation, and reforms¹. These priorities aim to generate ample opportunities and drive sustainable development.
4. Revenue and Expenditure
   • The budget outlines the composition of revenue and expenditure. Borrowings and other liabilities account for the largest share of revenue, followed by income tax, GST, and corporation tax¹.
   • On the expenditure side, the highest allocation goes towards the States’ share of taxes and duties, followed by interest payments, central sector schemes, and centrally sponsored schemes¹.
5. Tax and Regulatory Proposals
   • The budget introduces several tax and regulatory proposals to support businesses and individuals. These include changes in income tax slabs, incentives for startups, and measures to boost the manufacturing sector².
6. Social and Economic Initiatives
   • The budget emphasizes social justice and inclusive growth. Key initiatives include increased funding for healthcare, education, and social welfare programs¹.
   • The government also plans to enhance urban development through smart city projects and affordable housing schemes¹.

Implications for Businesses

For businesses, the Union Budget 2024-25 presents both opportunities and challenges. The focus on infrastructure development and innovation provides a conducive environment for growth. However, businesses must navigate the new tax and regulatory landscape to maximize benefits.

Economic and Fiscal Policies

• Fiscal Deficit: Target reduced to 5.1% of GDP from 5.8% in the previous year.
• GDP Growth: Focus on maintaining a sustainable growth trajectory with strategic investments.

Tax Reforms

• Direct and Indirect Taxes: No changes in tax rates, providing stability for businesses and individuals.
• GST Compliance: Simplification measures and rationalization of rates to ease the burden on businesses.
• Startups: Extension of tax benefits to encourage innovation and entrepreneurship.

Expenditure

• Capital Expenditure: Increased by 17%, emphasizing infrastructure projects like roads, railways, and airports.
• Revenue Expenditure: Increased by 3.2%, ensuring adequate funding for essential services.

Sectoral Initiatives

• Infrastructure: Significant investments in transportation infrastructure, including doubling the number of airports.
• Education and Skilling: Aligning with the National Education Policy 2020, enhancing R&D and higher education.
• Green Economy: Promoting green MSMEs and circular economy practices.

Social Welfare and Development

• Healthcare: Increased allocation for healthcare infrastructure and services.
• Rural Development: Enhanced funding for rural development projects and agricultural support.

Technological Advancements

• Digital India: Boosting investments in digital infrastructure and promoting technological innovations.
• AI and Robotics: Special focus on developing AI and robotics capabilities.

Conclusion

The Indian Union Budget 2024 sets a comprehensive roadmap for sustainable economic growth, addressing key challenges, and positioning India for a prosperous future. By balancing fiscal prudence with strategic investments, the budget aims to foster economic stability and growth.

The Union Budget 2024-25 is a forward-looking document that aims to build a resilient and inclusive economy. By focusing on key priorities and maintaining fiscal discipline, the government is laying the foundation for a prosperous future. As India moves towards its vision of ‘Viksit Bharat,’ this budget plays a pivotal role in shaping the nation’s economic trajectory.

Sources:

• Ministry of Finance, India
• Economic Survey 2023-24
• Press Information Bureau, India

This report provides an in-depth look at the key aspects and initiatives of the Indian Union Budget 2024, reflecting the government’s priorities and economic strategy for the year ahead.

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