Union Budget 2024 Highlights: Key Announcements and Impacts

Union Budget 2024: Comprehensive Analysis of Key Announcements and Impacts

Introduction

The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has brought forth significant policy changes and economic measures aimed at stimulating growth and supporting various sectors. This detailed analysis covers the key highlights, including income tax relief, infrastructure development, railways, and agricultural support. The budget reflects the government’s commitment to driving economic progress and improving the livelihoods of citizens.

Income Tax Relief

One of the most anticipated aspects of the Union Budget 2024 is the income tax relief for individuals. The Finance Minister announced several measures to reduce the tax burden on middle-class taxpayers. The changes include:

Increase in Basic Exemption Limit: The basic exemption limit has been increased from ₹2.5 lakh to ₹3 lakh, providing relief to low-income earners.
Revised Tax Slabs: The tax slabs have been restructured to offer progressive relief. The new tax rates are:
- Up to ₹3 lakh: Nil
- ₹3 lakh to ₹5 lakh: 5%
- ₹5 lakh to ₹10 lakh: 10%
- ₹10 lakh to ₹15 lakh: 20%
- Above ₹15 lakh: 30%
Standard Deduction: The standard deduction for salaried individuals has been increased from ₹50,000 to ₹75,000.

These changes are expected to boost disposable income and encourage spending, thereby stimulating economic activity.

Infrastructure Development

The Union Budget 2024 places a strong emphasis on infrastructure development, recognizing it as a key driver of economic growth. Key announcements include:

National Infrastructure Pipeline (NIP): The government has committed to completing the projects under the NIP, with an allocation of ₹1.5 lakh crore for the current fiscal year.
Road and Highway Projects: An additional ₹1 lakh crore has been allocated for road and highway projects, aiming to improve connectivity and reduce transportation costs.
Smart Cities Mission: The budget allocates ₹10,000 crore to the Smart Cities Mission, promoting urban development and modernization of existing cities.

Railways

The Indian Railways, a crucial component of the country’s transport infrastructure, received significant attention in the Union Budget 2024. Key highlights include:

Modernization of Railway Stations: ₹20,000 crore has been allocated for the modernization of 100 railway stations across the country, ensuring better facilities for passengers.
Introduction of High-Speed Trains: The government plans to introduce more high-speed trains, with an investment of ₹50,000 crore over the next five years.
Dedicated Freight Corridors: An additional ₹30,000 crore has been earmarked for the completion of dedicated freight corridors, aimed at reducing logistical costs and improving efficiency.

Agricultural Support

The budget also addresses the needs of the agricultural sector, with several measures to support farmers and enhance agricultural productivity. Key initiatives include:

Increase in Minimum Support Prices (MSPs): The government has increased the MSPs for major crops to ensure fair compensation for farmers.
Pradhan Mantri Fasal Bima Yojana (PMFBY): An allocation of ₹15,000 crore has been made to strengthen the crop insurance scheme, providing better risk coverage for farmers.
Irrigation Projects: The budget allocates ₹20,000 crore for the completion of ongoing irrigation projects and the initiation of new ones.

Health and Education

Recognizing the importance of health and education, the Union Budget 2024 has allocated substantial funds to these sectors:

Healthcare Infrastructure: An allocation of ₹1 lakh crore for healthcare infrastructure, including the establishment of new AIIMS and upgrading existing hospitals.
Education Reforms: ₹80,000 crore has been allocated for education, focusing on digital learning, teacher training, and the establishment of new universities.

Digital Economy

The budget also emphasizes the growth of the digital economy, with initiatives aimed at boosting digital infrastructure and promoting digital transactions:

Digital India Programme: An allocation of ₹30,000 crore to further the Digital India initiative, enhancing internet connectivity in rural areas and promoting digital literacy.
Support for Startups: The budget introduces tax incentives for startups, including a reduction in the corporate tax rate and easier access to funding.

Fiscal Discipline

The Finance Minister emphasized the importance of maintaining fiscal discipline while ensuring economic growth. The key fiscal measures include:

Fiscal Deficit Target: The fiscal deficit target for 2024-25 has been set at 5.5% of GDP, down from 6.8% in the previous year.
Disinvestment Plan: The government aims to raise ₹1 lakh crore through the disinvestment of public sector enterprises.

The Union Budget 2024 presents a balanced approach, addressing the needs of various sectors while maintaining fiscal discipline. The focus on income tax relief, infrastructure development, agricultural support, and digital economy reflects the government’s vision for a prosperous and inclusive India. These measures are expected to stimulate economic growth, create jobs, and improve the standard of living for citizens.