Budget 2024: Jobs and Middle Class Benefits Unveiled

Budget 2024, presented by Finance Minister Nirmala Sitharaman, promises significant benefits for the middle class and a robust focus on job creation. This detailed analysis delves into the key aspects of the budget, highlighting its emphasis on employment, education, and fiscal discipline.

Focus on Jobs and Education

Employment Initiatives

Finance Minister Nirmala Sitharaman announced three new schemes aimed at incentivizing employment. A substantial allocation of Rs 1.48 lakh crore is earmarked for job creation, education, and skilling initiatives. This budget aligns with Prime Minister Narendra Modi’s Viksit Bharat 2047 Vision, aiming to propel India towards comprehensive development.

Education and Skilling

Significant investments are made in education and skilling. The budget proposes loans of up to Rs 10 lakh for higher education in domestic institutions. Additionally, e-vouchers will be provided to 1 lakh students annually, with an interest subvention of 3% on the loan amount. This initiative aims to make higher education more accessible and affordable.

Support for Agriculture

Agricultural Allocations

The budget allocates Rs 1.52 lakh crore to agriculture and allied sectors. This includes the release of 109 high-yielding and climate-resilient crop varieties. In the next two years, 1 crore farmers will be introduced to natural farming, promoting sustainable agricultural practices.

Financial Support for States

Andhra Pradesh and Bihar

Andhra Pradesh is set to receive Rs 15,000 crore in financial support, while Bihar will benefit from aid through multilateral development agencies. These allocations aim to stimulate regional development and economic growth.

Direct Benefit Transfers

Wage Support for New Employees

The government introduces a Direct Benefit Transfer scheme, providing one month’s wage to all newly employed individuals in formal sectors. This initiative, benefiting 210 lakh youth, will be distributed in three installments for salaries up to Rs 1 lakh per month.

Infrastructure and Capital Expenditure

Key Sectors to Benefit

With an expected boost in capital expenditure, sectors like defense, infrastructure, and Public Sector Undertakings (PSUs) are poised for significant benefits. The budget is anticipated to extend the Production Linked Incentive (PLI) schemes and announce new infrastructure projects.

Impact on Consumption

Enhanced allocations for rural schemes and affordable housing are expected to boost consumption. Key players in consumer goods, real estate, and automobiles, like Hindustan Unilever and Tata Motors, could see substantial gains.

Fiscal Deficit and Economic Projections

Fiscal Discipline

The budget might feature a reduction in the fiscal deficit target, potentially lowering it to 5% of GDP. This move reflects the government’s effort to manage finances amidst coalition demands, potentially benefiting India’s bond market.

Economic Growth

The Economic Survey 2023-24 projects India’s growth at 6.5% to 7%, lower than previous estimates. Despite geopolitical risks and cheaper imports posing challenges, the economy’s resilience remains noteworthy. The survey underscores the need for support from both private and public sectors to sustain growth and manage inflation effectively.

Market Reactions

Stock Market Expectations

Domestic markets remain cautiously optimistic, with high expectations for tax relief and changes to capital gains taxation. Measures to boost consumption and infrastructure are anticipated, though any disappointment could lead to a market correction.

Budget 2024, with its focus on employment, education, and fiscal discipline, presents a balanced approach to fostering economic growth and supporting the middle class. The detailed provisions and substantial allocations aim to drive India towards a more prosperous future.

Aakhir Tak Editor-in-Chief

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