Union Budget 2024: Key Highlights and Detailed Analysis

The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, is pivotal for India’s economic landscape. This comprehensive document outlines fiscal strategies, policy measures, and sector-specific allocations, aimed at bolstering economic growth, enhancing infrastructure, providing tax relief, and supporting farmers.

Economic Context and Overview

The 2024 Budget arrives amidst global economic uncertainties and domestic challenges. The Government aims to maintain a delicate balance between fiscal prudence and growth stimulation. The Indian economy is projected to grow at 7% in the upcoming fiscal year, supported by robust domestic demand and strategic policy interventions.

Income Tax Relief

One of the most anticipated aspects of the Budget is income tax relief. The government has proposed several measures to reduce the tax burden on individuals:

Increase in Basic Exemption Limit: The basic exemption limit has been raised from ₹2.5 lakh to ₹3 lakh, benefitting millions of taxpayers.
Standard Deduction: The standard deduction has been increased from ₹50,000 to ₹75,000.
Tax Slab Adjustments: The tax slabs have been restructured to provide more relief to middle-income groups, with a focus on enhancing disposable incomes.

Railways Budget

The Indian Railways, a crucial part of the national infrastructure, has received significant attention in the Budget:

Infrastructure Development: Allocation of ₹1.5 lakh crore for the development and modernization of railway infrastructure, including high-speed rail corridors and station redevelopment.
Safety Measures: Enhanced budget for safety measures, including the installation of advanced signaling systems and automated track maintenance.
Passenger Amenities: Investment in improving passenger amenities, such as better seating, sanitation, and on-board services.

Infrastructure Investment

Infrastructure development is a key driver of economic growth. The Budget allocates substantial resources for infrastructure projects:

Roads and Highways: ₹2 lakh crore allocated for the construction and maintenance of national highways, expressways, and rural roads.
Urban Development: Investment in smart cities, urban transport, and affordable housing projects.
Renewable Energy: Significant funding for renewable energy projects, aiming to achieve 175 GW of renewable energy capacity by 2024.

Agriculture and Farmers’ Welfare

The agricultural sector, which sustains a large portion of the Indian population, has been a focal point:

Subsidies and Support: Enhanced subsidies for fertilizers, seeds, and equipment to reduce the cost burden on farmers.
Minimum Support Price (MSP): Increase in MSP for key crops to ensure better returns for farmers.
Irrigation Projects: Allocation of ₹50,000 crore for irrigation and water conservation projects to improve agricultural productivity.

Healthcare and Education

Investments in healthcare and education are vital for human capital development:

Healthcare Infrastructure: ₹1 lakh crore allocated for the development of healthcare infrastructure, including the construction of new hospitals and medical colleges.
Education Reforms: Investment in digital education, teacher training, and infrastructure development in rural schools.

Social Welfare and Women Empowerment

Social welfare schemes have been bolstered to ensure inclusive growth:

Social Security: Expansion of social security schemes for unorganized sector workers.
Women Empowerment: Enhanced funding for women-centric schemes, including financial inclusion, entrepreneurship, and safety initiatives.

Defense and National Security

National security remains a priority, with significant allocations for defense:

Modernization: ₹3 lakh crore allocated for the modernization of the armed forces, including procurement of advanced weaponry and technology.
Research and Development: Investment in defense R&D to promote indigenous technology development.

Digital Economy and Innovation

Promoting the digital economy and fostering innovation are crucial for future growth:

Digital Infrastructure: Investment in expanding digital infrastructure, including high-speed internet and 5G networks.
Startup Ecosystem: Enhanced support for startups through funding, tax incentives, and ease of doing business initiatives.

The Union Budget 2024 reflects a balanced approach towards sustainable economic growth, social welfare, and infrastructure development. It aims to create a resilient economy capable of withstanding global challenges while ensuring inclusive growth for all sections of society.