Finance Minister Nirmala Sitharaman on July 23 presented her seventh consecutive budget in Parliament which outlined fiscal strategy and priorities for the upcoming financial year with a key focus on the agricultural sector, employment, infrastructure, and innovation.
The budget focuses on provisions for the agricultural sector, the introduction of employment-related schemes, loan schemes, announcements for financial support to the MSME sector, infrastructural development, and fiscal deficit projection at 4.9% with a commitment to reducing it to 4.5%.
The Union Budget 2024 also proposed many changes in taxation policies which include giving income tax relief to some, boosting spending to rationalizing the capital gains tax rate and holding period of various assets.
According to the revised tax slab, the tax for a salary of up to 3 lakh is nil, between ₹ 3 to 7 lakh is 5%, between ₹7 to 10 lakh is 10%, between ₹10 to 12 lakh is 15%, between ₹12 to 15 lakh is 20%, and over ₹15 lakh is 30%.
Under the revised tax slab, if an individual earns ₹ 10 lakh per annum, the income tax to be paid will be ₹ 42,500 as opposed to ₹ 52,500 previously.
The budget has also proposed increased allocations for education and skill development. It further seeks to balance fiscal responsibility with growth, targeting a reduction in the fiscal deficit from 5.1% to 4.9% of GDP.
Major Budget Allocation:
The budget allocation includes ₹1,25,638 crore for Education, ₹47,559 crores for Commerce & Industry, ₹1,16,342 crore for IT and Telecom, ₹4,54,773 crore for Defense, ₹2,65,808 crore for Rural Development, ₹1,51,851 crore for Agriculture and Allied Activities, ₹1,50,983 crore for Home Affairs, ₹89,287 crore for Health, ₹68,769 crore for Energy, and ₹56,501 crore for Social Welfare.
Employment and Skill Growth:
The government aims to upgrade 1,000 Industrial Training Institutes (ITIs) in a hub-and-spoke arrangement over the next five years, focusing on outcomes and quality through collaboration with states and industry.
An internship scheme will be introduced, targeting 1 crore youth in India's top companies over five years. Additionally, a 12-month Prime Minister's Internship program will provide a monthly allowance of ₹5,000.
Five schemes will target 4.1 crore youth over five years, with a central outlay of ₹2 lakh crore.
Employment-linked incentives will include one month’s wage support for first-time employees, and there will be specific skilling programs aimed at increasing women’s workforce participation.
Financial aid for students pursuing higher education:
FM Sitharaman announced that the Modi-led BJP government will offer financial support for loans up to ₹10 lakh to students pursuing higher education in domestic institutions.
The move will help youth who have not been eligible for any benefit under government schemes and policies. E-vouchers will be given directly to 1 lakh students every year with a 3% interest subsidy on the loan amount.
Reduced Import Duties for a Range of Products:
In the new budget, custom duties have been reduced to make various products cheaper, including mobile phones and chargers, printed circuit board assembly (PCBA), and oxygen-free copper used in the manufacture of resistors.
Duties on gold and silver have been cut to 6%, and platinum to 6.4%. Other items with reduced duties include blister copper, ferronickel, cancer drugs such as cancer drugs like Trastuzumab Deruxtecan, Osimertinib, and Durvalumab, components for manufacturing vessels, solar energy parts, certain brood stock, shrimp and fish feed, and medical products like orthopedic implants, and artificial body parts.
Agriculture and Allied Sectors:
A provision of ₹1.52 lakh crore has been made for agriculture and allied sectors in the budget. In the next two years, 1 crore farmers will be involved in natural farming, supported by branding and certification.
To support vegetable production and supply chains, large clusters will be developed closer to consumption centers. Financial support for shrimp breeding centers will be provided, and exports will be facilitated through NABARD.
Kisan Credit Cards will be launched in five states. Additionally, 109 varieties of 32 crops will be released, and natural farmers will be aided with verification and branding.
To ensure self-sufficiency in pulses and oil seeds, 6 crore farmers and their land will be brought into the farmer and land registry.
Opposition's criticism:
Senior Congress leader P Chidambaram made a scathing attack on the Union budget, calling it "as vague as vague can be" and questioned the source of data the BJP showed.
Most of the claims made while presenting the budget were as vague as vague can be," he said, citing the government's scheme for jobs and apprenticeships for first-time workers.
While the Congress strongly criticized the budget, its INDIA bloc allies had their take and they all unanimously agreed that this is a "kursi bachao (save the government)" budget.
"It is understandable that they have to save their government and gave special packages to Bihar and Andhra Pradesh, but a state like Uttar Pradesh that gives the country its prime ministers, is there anything for the farmers here?" said Samajwadi Party leader Akhilesh Yadav.
Congress president Mallikarjun Kharge also criticized the union budget, terming it a "copycat" while alleging that it is not for the progress of the country but to save the Modi government.
"Only superficial talks have been held for farmers — one and a half times MSP and doubling of income —
all turned out to be electoral fraud! This government has no intention of increasing rural wages," Kharge said in a post on X.
