The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, brings significant changes to India’s economic landscape. Among the key highlights are the revised rate slabs under the new tax regime, aimed at providing relief to taxpayers and boosting economic growth. Here, we bring you live updates on the major announcements and their implications.
Introduction to Budget 2024
The Union Budget 2024, delivered by FM Nirmala Sitharaman, focuses on economic revival, infrastructure development, and tax reforms. The government’s vision for the fiscal year is centered around growth and inclusivity, addressing both macroeconomic stability and microeconomic welfare.
Key Announcements by FM Nirmala Sitharaman
Revised Tax Rate Slabs
1. FM Nirmala Sitharaman announced new tax slabs under the revised tax regime. The changes are designed to simplify the tax structure and make it more beneficial for individual taxpayers. The revised slabs are as follows:
- Income up to ₹3 lakh: Nil
- Income between ₹3 lakh – ₹7 lakh: 5%
- Income between ₹7 lakh – ₹10 lakh: 10%
- Income between ₹10 lakh – ₹12 lakh: 15%
- Income between ₹12 lakh – ₹15 lakh: 20%
- Income above ₹15 lakh: 30%
2. These revisions aim to increase disposable income and stimulate consumption, thereby driving economic growth.
3. Boost to Infrastructure Development
The budget allocates significant funds for infrastructure projects, including roads, railways, and urban development. This investment is expected to create jobs, enhance connectivity, and support overall economic development.
Infrastructure and Regional Development:
- Rental housing in PPP mode for industrial workers
- Special financial support of ₹15,000 crore for Andhra Pradesh
- New airports, medical facilities, and sports infrastructure for Bihar
4. Agriculture and Rural Development
Recognizing the importance of the agricultural sector, FM Nirmala Sitharaman announced increased funding for rural development and farmer welfare schemes. This includes investments in irrigation, crop insurance, and rural infrastructure, aimed at improving the livelihoods of farmers and boosting agricultural productivity.
- ₹2.66 lakh crore provision for rural development
- Transformation of agricultural research to focus on productivity and climate-resilient crop varieties
- Initiative to introduce 1 crore farmers to natural farming over 2 years
5. Support for Manufacturing and PLI Scheme
The Production Linked Incentive (PLI) scheme receives a substantial boost in Budget 2024. This scheme is designed to promote domestic manufacturing and attract foreign investment. The enhanced support is expected to strengthen India’s position as a global manufacturing hub.
6. Healthcare and Education
The budget also places a strong emphasis on healthcare and education. Increased allocations for these sectors aim to improve access to quality services and support human capital development, essential for long-term economic growth.
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Impact on the Economy
The announcements made by FM Nirmala Sitharaman in Budget 2024 are poised to have a far-reaching impact on India’s economy. The revised tax slabs are expected to provide much-needed relief to middle-class taxpayers, increasing their disposable income and boosting consumption. The focus on infrastructure, agriculture, manufacturing, healthcare, and education demonstrates a holistic approach to economic development.
Expert Opinions
Economic experts have lauded the budget for its balanced approach, addressing both immediate and long-term needs. The revised tax slabs are seen as a positive step towards a simpler and more equitable tax system. The increased investment in infrastructure and manufacturing is expected to create jobs and drive economic growth.
Conclusion
Budget 2024, presented by FM Nirmala Sitharaman, marks a significant step towards economic revival and growth. The revised tax rate slabs, combined with substantial investments in key sectors, are expected to drive consumption, create jobs, and enhance overall economic stability. Stay tuned for more updates as the implementation of these measures unfolds.
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