Anticipated Reforms in India’s Union Budget 2024
As India braces itself for the first full-year Union Budget under the NDA government post the 2024 elections, stakeholders from various sectors eagerly anticipate strategic reforms and budgetary allocations. These measures aim to drive economic growth, enhance social welfare, and bolster key sectors crucial to India’s development goals.
Increased Capital Expenditure (Capex) on Infrastructure
Expectations are high for sustained high capital expenditure in critical infrastructure sectors such as roads, power, urban development, and railways. This strategic allocation aims to stimulate economic growth, create employment opportunities, and foster long-term benefits.
Focus on Railway Infrastructure
Significant investments are expected in expanding and modernizing railway infrastructure, including new lines and station redevelopment. This initiative aligns with commitments to enhance railway connectivity and infrastructure across the country.
Affordable Housing and Urban Development
Funding allocations are anticipated to support affordable housing projects and satellite township development near metro cities. This focus aims to bolster urban infrastructure and improve access to affordable housing options for citizens.
Modernization of Armed Forces
Increased budgetary allocations are expected to support the modernization efforts of India’s armed forces, emphasizing technology acquisition and Indigenous defense manufacturing capabilities.
Support for Agriculture and Farmers
Anticipated measures include higher Minimum Support Prices (MSPs) for crops, enhanced agricultural infrastructure, and support for initiatives like PM Kisan Samman Nidhi to boost rural incomes and agricultural productivity.
Boosting Startups and MSMEs
Expansion of credit programs and initiatives like the Startup India Seed Fund Scheme are expected to bolster the startup ecosystem and support Micro, Small, and Medium Enterprises (MSMEs) across the country.
Job Creation through Public Welfare Schemes
The budget will likely emphasize infrastructure projects and public welfare schemes as crucial drivers of employment generation, particularly in rural areas.
Healthcare Enhancements
The continued expansion of the Ayushman Bharat scheme and the increased focus on healthcare services are expected to enhance public health infrastructure and services across India.
Investments in Renewable Energy
Anticipated increases in investments in renewable energy sources, such as solar and wind power projects, are set to drive clean energy technologies forward.
Green Initiatives
Support for green hydrogen projects and sustainability-focused infrastructure initiatives are expected to promote environmental sustainability and innovation.
Personal Income Tax Reforms
Revisions in income tax slabs are anticipated to provide relief to the middle class, potentially increasing basic exemption limits and adjusting tax thresholds to support economic activities.
Corporate Tax Considerations
Potential reductions in corporate tax rates for MSMEs are expected to support growth and sustainability in this vital sector of the economy.
Conclusion
As India prepares for the FY25 Union Budget, these transformative measures across various sectors underscore the government’s commitment to fostering economic resilience, sectoral growth, and social welfare. These initiatives are crucial to sustaining economic development and unlocking opportunities for stakeholders and investors.
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