Budget Theme and Priorities:
Emphasis on employment, skilling, MSMEs, and middle class in the budget
– Focus on productivity and resilience in agriculture, with the release of 109 new high-yielding and climate resilient crop varieties.
– Initiatives for natural farming and support for shrimp production and export.
Employment and Skilling:
Introduction of 5 schemes targeting 4.1 crore youth over 5 years, with a central outlay of ₹2 lakh crore.
– Comprehensive internship scheme for 1 crore youth in top companies over 5 years.
– Employment-linked incentives, including wage support for first-time employees.
– Women-specific skilling programs aimed at increasing workforce participation.
MSME and Manufacturing Support:
Special attention and support for MSMEs and the manufacturing sector.
– Credit guarantee schemes, term loans for machinery purchase, and technology support packages.
– SIDBI to open 24 new branches to serve MSME clusters.
Financial Initiatives:
Increase in Mudra loan limit from ₹10 lakh to ₹20 lakh for previous borrowers.
– Financial support for higher education loans up to ₹10 lakh in domestic institutions.
Infrastructure and Regional Development:
Introduction of rental housing in PPP mode for industrial workers.
– Special financial support of ₹15,000 crore for Andhra Pradesh.
– Development of new airports, medical facilities, and sports infrastructure in Bihar.
Economic Outlook:
Inflation targeted to move towards 4%.
– India’s economic growth highlighted as a positive outlier.
– Focus on job creation and boosting consumption, which could benefit sectors like consumer goods, real estate, and automobiles.
Social Welfare:
Extension of PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana) for five years.
– Allocation of over ₹3 lakh crore for schemes benefiting women and girls.
Budget Estimates 2024-25:
Total receipts estimated at ₹32.07 lakh crore.
– Total expenditure estimated at ₹48.21 lakh crore.
– Net tax receipts estimated at ₹25.83 lakh crore.
– Fiscal deficit targeted at 4.9% of GDP.
Tax Rate Structure:
Revised income tax rate structure:
– ₹0-3 lakh: Nil
– ₹3-7 lakh: 5%
– ₹7-10 lakh: 10%
– ₹10-12 lakh: 15%
– ₹12-15 lakh: 20%
– Above ₹15 lakh: 30% – Standard Deduction increased to ₹75,000.
Capital Gains Tax:
Short-term capital gains tax revised to 20%.
– Long-term capital gains tax on financial assets increased to 12.5%.
– STT (Security Transaction Tax) on derivatives raised to 0.02%.
– Short-term capital gains tax revised to 20%.
– Long-term capital gains tax on financial assets increased to 12.5%.
– STT (Security Transaction Tax) on derivatives raised to 0.02%.
These updates reflect the government’s focus on economic growth, employment generation, and social welfare in the Union Budget 2024-25.
Conclusion
In conclusion, the Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, showcases a comprehensive approach to economic growth, employment generation, and social welfare. Key highlights include significant support for employment and skilling, MSMEs, manufacturing, and agriculture, along with substantial financial initiatives and infrastructure development. The budget’s emphasis on job creation, economic resilience, and sector-specific incentives demonstrates the government’s commitment to fostering a robust and inclusive economy. Stay updated with these insights from Vera Causa Legal for a deeper understanding of the legal and financial implications in the ever-evolving economic landscape.