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.
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