23 Jul Key Highlights of the Union Budget 2024-25
Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman presented the Union Budget for 2024-25 in Parliament today. Here are the key highlights:
Part-A
Budget Estimates 2024-25:
- Total Receipts (excluding borrowings): ₹32.07 lakh crore
- Total Expenditure: ₹48.21 lakh crore
- Net Tax Receipt: ₹25.83 lakh crore
- Fiscal Deficit: 4.9% of GDP, with a target to reduce it below 4.5% next year
- Inflation: Low and stable, approaching the 4% target; Core inflation (excluding food and fuel) at 3.1%
Budget Focus Areas: Employment, Skilling, MSMEs, and the Middle Class
Prime Minister’s Five Schemes for Employment and Skilling:
- Scheme A - First Timers: Up to ₹15,000 in three installments to first-time employees registered with EPFO.
- Scheme B - Job Creation in Manufacturing: Direct incentives for both employees and employers in the first four years of employment.
- Scheme C - Support to Employers: Reimbursement of up to ₹3,000 per month for two years towards EPFO contributions for additional employees.
- New Skilling Scheme: Skill development for 20 lakh youth over five years and upgrading 1,000 Industrial Training Institutes.
- New Internship Scheme: 1 crore youth to be provided internships in 500 top companies over five years.
Nine Budget Priorities in Pursuit of ‘Viksit Bharat’:
- Agricultural Productivity and Resilience: ₹1.52 lakh crore allocated; introduction of high-yield, climate-resilient crop varieties; certification for natural farming.
- Employment & Skilling: Implementation of employment-linked incentives and establishment of hostels and crèches for working women.
- Inclusive Human Resource Development and Social Justice: Development of industrial nodes, financial support for Andhra Pradesh, and women-led development initiatives.
- Manufacturing & Services: Credit guarantees for MSMEs, enhanced Mudra loans, and support for e-commerce export hubs.
- Urban Development: Investment of ₹10 lakh crore in urban housing, development of street markets, and transit-oriented development plans.
- Energy Security: Policies for energy transition, pumped storage projects, and advancements in nuclear energy.
- Infrastructure: ₹11.11 lakh crore for capital expenditure, support for state infrastructure investments, and comprehensive tourism development.
- Innovation, Research & Development: Operationalization of Anusandhan National Research Fund and expansion of the space economy.
- Next Generation Reforms: Digitalization of land records, integration of e-shram portal, and introduction of NPS-Vatsalya for minor contributions.
Part-B
Indirect Taxes:
GST: Simplification and rationalization of the tax structure to extend GST to additional sectors.
Sector-Specific Customs Duty Proposals:
- Medicines and Medical Equipment: Full exemption for certain cancer drugs and changes in customs duty on x-ray equipment.
- Mobile Phones and Related Parts: Reduction in basic customs duty on mobile phones and components.
- Precious Metals: Reduction in customs duties on gold, silver, and platinum.
- Other Metals: Removal of customs duties on various metals and concessional duties on copper scrap.
- Electronics: Exemption on copper for resistor manufacturing.
- Chemicals and Petrochemicals: Increased customs duty on ammonium nitrate.
- Plastics: Increased customs duty on PVC flex banners.
- Telecommunication Equipment: Increased customs duty on certain telecom equipment.
Trade Facilitation:
- Extension of time limits for export and re-import of goods for repairs.
- Full exemption for 25 critical minerals from customs duties.
Direct Taxes:
- Continued efforts to simplify taxes, improve services, and reduce litigation.
- Simplification of Reassessment: Adjustments in the time limits for reopening assessments.
- Capital Gains: Revised tax rates and increased exemption limits.
- Taxpayer Services: Digitalization of customs and income tax services.
- Litigation and Appeals: Introduction of the 'Vivad Se Vishwas Scheme, 2024' and increased monetary limits for appeals.
- Employment and Investment: Abolition of angel tax and simplified tax regimes for foreign companies and cruise tourism.
- Deepening Tax Base: Increased Security Transactions Tax and taxation on share buybacks.
Social Security Benefits:
- Increase in deduction for employer contributions towards NPS.
- De-penalization of non-reporting of small movable foreign assets.
Finance Bill Proposals:
- Personal Income Tax: Increased standard deduction and revised tax rate structure, potentially saving salaried employees up to ₹17,500 in income tax.
For more details, you can access the full press release here.
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