Key Highlights of India's Budget 2024

Key Highlights of India's Budget 2024

Economic Overview

- GDP Growth: India aims for a GDP growth rate of around 7% for the fiscal year 2024-2025.

- Fiscal Deficit: Target set at 5.9% of GDP, continuing the path towards fiscal consolidation.

- Inflation: Efforts to keep inflation within the targeted range of 4% with a 2% margin.

Taxation

- Personal Income Tax: No changes in tax slabs. Standard deduction increased by ₹50,000.

- Corporate Tax: Tax rate remains unchanged. Extension of concessional tax rate of 15% for new manufacturing companies till March 2025.

- Goods and Services Tax (GST): Simplification of GST filing process and measures to curb tax evasion.

Agriculture and Rural Development

- PM-KISAN Scheme: Allocation increased to provide ₹6,000 annually to farmers in three installments.

- Agri Infrastructure: ₹1.5 lakh crore allocated for the development of agricultural infrastructure, including cold storage and warehousing.

- Rural Employment: Enhanced budget for MNREGA to ensure employment for rural households.

Healthcare

- Ayushman Bharat: Expansion of health insurance coverage to more beneficiaries.

- Healthcare Infrastructure: ₹70,000 crore allocated for building new hospitals and upgrading existing ones, especially in rural areas.

- Telemedicine: Promotion of telemedicine services and digital health initiatives.

Education

- NEP Implementation: Continued emphasis on the National Education Policy with a budget increase for educational reforms.

- Digital Education: ₹30,000 crore allocated for the expansion of digital learning tools and infrastructure.

- Research and Development: Boost to R&D with increased funding for higher education institutions.

Infrastructure

- National Highways: ₹1.3 lakh crore allocated for the expansion and maintenance of national highways.

- Railways: Record allocation of ₹2.4 lakh crore for railway infrastructure, modernization, and safety.

- Urban Development: Focus on smart cities and urban housing with a budget of ₹1 lakh crore.

Industry and Commerce

- MSME Support: ₹50,000 crore allocated for the promotion and support of Micro, Small, and Medium Enterprises (MSMEs).

- Start-up Ecosystem: Tax incentives and funding support for start-ups and innovation hubs.

- Ease of Doing Business: Further simplification of regulatory frameworks to boost business activities.

Social Welfare

- Women Empowerment: Increased funding for women-centric schemes, including skill development and entrepreneurship programs.

- Social Security: Expansion of social security nets for unorganized workers and senior citizens.

- Housing for All: Continued push for affordable housing with an increased allocation for the Pradhan Mantri Awas Yojana.

Environment and Sustainability

- Renewable Energy: ₹40,000 crore allocated for the promotion of renewable energy projects.

- Electric Vehicles: Incentives for the adoption of electric vehicles and expansion of EV infrastructure.

- Climate Action: Commitment to achieving net-zero emissions with focused investments in green technologies.

Defense and Security

- Defense Budget: Significant increase in defense spending with a focus on modernization and indigenous production.

- Internal Security: Enhanced budget for internal security and modernization of police forces.

Digital Economy

- Digital Infrastructure: ₹20,000 crore allocated for expanding digital infrastructure and connectivity.

- Cybersecurity: Increased funding for cybersecurity measures and protection of digital assets.

- E-Governance: Continued emphasis on e-governance and digitization of government services.

What Became Cheaper and Costlier After India's Budget 2024

Cheaper

- Electric Vehicles (EVs): Reduced GST on EVs and EV components to promote green transportation.

- Solar Panels and Equipment: Lower import duties on solar panels and related equipment to encourage renewable energy adoption.

- Certain Medical Devices: Reduction in customs duties on specific medical devices to make healthcare more affordable.

- LED Lights and Energy-Efficient Appliances: Reduced taxes to promote energy conservation and efficiency.

- Basic Food Items: Lower GST on essential food items like cereals and pulses to reduce the cost of living.

- Education Services: Tax incentives for online education platforms and vocational training institutes to make education more accessible.

Costlier

- Luxury Goods: Increased taxes on luxury items such as high-end electronics, imported cars, and branded apparel.

- Tobacco Products: Higher excise duties on cigarettes, tobacco, and related products to curb consumption and boost public health.

- Alcohol: Increased excise duties on alcoholic beverages to generate additional revenue and discourage excessive consumption.

- Imported Electronics: Higher import duties on certain electronic goods to promote domestic manufacturing under the Make in India initiative.

- Sugar-Sweetened Beverages: New taxes on sugary drinks to address public health concerns related to obesity and diabetes.

- Plastic Products: Higher taxes on single-use plastics to promote environmental sustainability and reduce plastic waste.

These adjustments reflect the government's priorities in promoting sustainable practices, health, and domestic production while discouraging the consumption of non-essential and harmful goods.

Additional Areas for Consideration in India's Budget 2024

Analytical Perspective

Public Health and Safety

- Pandemic Preparedness: Establishment of a dedicated fund for future pandemic preparedness, including stockpiling essential medical supplies and vaccines.

- Mental Health: Increased allocation for mental health services and awareness campaigns to address the growing mental health crisis.

Innovation and Technology

- Artificial Intelligence: Investment in AI research and development to drive innovation and create new job opportunities.

- Blockchain Technology: Funding for exploring blockchain applications in governance, finance, and supply chain management.

Education and Skill Development

- Teacher Training: Enhanced funding for teacher training programs to improve the quality of education.

- Vocational Training: Expansion of vocational training institutes to equip youth with industry-relevant skills.

Housing and Urban Development

- Affordable Rental Housing: Introduction of schemes to promote affordable rental housing in urban areas.

- Smart City Integration: Increased funding for integrating smart technologies in more cities beyond the current smart city initiatives.

Environmental Sustainability

- Water Conservation: Greater emphasis on water conservation projects, including rainwater harvesting and watershed management.

- Biodiversity Conservation: Increased funding for the conservation of biodiversity hotspots and endangered species.

Transportation

- Public Transport: Investment in expanding and modernizing public transport systems in major cities to reduce congestion and pollution.

- Electric Vehicle Infrastructure: Further development of EV charging infrastructure and incentives for EV adoption.

Agriculture and Food Security

- Organic Farming: Promotion of organic farming practices through subsidies and training programs.

- Food Processing Industry: Increased investment in the food processing industry to reduce post-harvest losses and create value-added products.

Financial Inclusion

-Microfinance: Expansion of microfinance initiatives to provide financial services to the unbanked and underbanked populations.

- Digital Payments: Further promotion of digital payments and financial literacy programs to enhance financial inclusion.

Social Welfare and Inclusion

- Disability Support: Increased funding for services and infrastructure to support people with disabilities.

- Old Age Care: Development of programs and facilities for the elderly, including healthcare and social support systems.

Governance and Administration

- Public Sector Reforms: Implementation of reforms to improve the efficiency and transparency of public sector enterprises.

- Decentralization: Increased funding and autonomy for local governments to address regional and local issues effectively.

Research and Development

- Scientific Research: Enhanced funding for scientific research and innovation across various disciplines.

- Collaborative R&D: Encouraging collaboration between public institutions and private sector for joint research initiatives.

Disaster Management

- Resilience Building: Investment in building disaster-resilient infrastructure, particularly in areas prone to natural calamities.

- Early Warning Systems: Development and enhancement of early warning systems for natural disasters.

Tourism and Culture

- Cultural Preservation: Increased funding for the preservation and promotion of cultural heritage sites.

- Eco-tourism: Promotion of eco-tourism initiatives to boost sustainable tourism practices.

Digital Governance

- Cybersecurity Workforce: Investment in training a cybersecurity workforce to protect national digital infrastructure.

- E-Government Services: Expansion of e-government services to rural and remote areas to enhance accessibility and efficiency.

The Budget 2024 focuses on inclusive growth, infrastructure development, digital transformation, and sustainability, aiming to build a robust and resilient economy for the future.To create a more comprehensive and balanced budget, these additional areas should be considered, focusing on long-term sustainability, inclusivity, and resilience. This approach will ensure holistic development and address both current challenges and future needs.