Budget 2024: Finance Minister’s Measures Draw Ire from Middle Class, Low Earners, and Investors

Budget 2024: Finance Minister’s Measures Draw Ire from Middle Class, Low Earners, and Investors

Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 in Parliament on July 23, a pivotal moment underlining the significant provisions for various sectors, including agriculture, employment, MSMEs, infrastructure, and fiscal deficit management.

Agricultural Sector Boost

The budget allocated substantial funds towards enhancing agricultural productivity and resilience, promising a brighter future for the sector. Highlights include plans to introduce 109 new high-yielding and climate-resilient crop varieties. The government aims to shift 10 million farmers to natural farming practices within two years and establish 10,000 bio-input resource centers.

Infrastructure and Development

The focus remains steadfast on bolstering infrastructure across the country. Notable announcements include the development of industrial parks in or near 100 cities, a sign of the government’s commitment to attract investments and promote manufacturing.

MSME and Employment Initiatives

Special attention was given to MSMEs with proposals for credit guarantee schemes, term loans for machinery purchases, and technology support packages. The budget also introduced schemes to boost employment, including job creation and skill development incentives, particularly targeting the youth.

Taxation and Fiscal Management

The fiscal deficit for FY25 is projected at 4.9% of GDP, with efforts to reduce it further in subsequent years. Changes in the tax regime include revised income tax slabs to provide relief to taxpayers and adjustments in capital gains taxes to rationalize and simplify the structure.

Customs Duty Adjustments

The budget announced changes in customs duties, including reductions for certain products such as mobile phones, gold, and silver, aimed at boosting domestic manufacturing and reducing consumer costs.

Social Welfare and Other Measures

The budget extended five-year schemes like PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana), allocated funds for education, health, and rural development, and proposed initiatives to promote tourism and cultural heritage sites across India.

Conclusion

Overall, Budget 2024-25 outlines a comprehensive strategy to stimulate economic growth, enhance infrastructure, support agricultural development, and provide impetus to employment generation through targeted fiscal measures and policy initiatives.