02 February 2024 | By INDIE
Are you curious about how the latest budget affects you and your dreams for the future? The 2024 budget, presented by Finance Minister Nirmala Sitharaman, has everyone talking.
Whether saving up for a new home, dreaming of starting your own business or just hoping for a more comfortable life, this budget has a lot to offer. Let's unpack the key points and see how they might help turn your dreams into reality.
The fiscal deficit target for FY25 has been set at 5.1% of the GDP, lower than the revised 5.8% target in FY24.
“We continue on the path of fiscal consolidation, as announced in my Budget Speech for 2021-22, to reduce fiscal deficit below 4.5 per cent by 2025-26.” – FM Sitharaman
The economic outlook presented in the budget is cautiously optimistic, focusing on leveraging the strengths of India's democracy, demography, and diversity. The government is not compromising on essential public expenditure. It aims to reshape India's economy in the next decade, targeting a developed country status by 2047.
This goal involves a comprehensive strategy including major investments in infrastructure, green energy and technology.
The budget has increased capital expenditure (capex) to ₹11.1 lakh crore in FY25, up from 11.1% last year. This allocation, representing 3.4% of the GDP, is a strategic move for infrastructure development.
The focus on enhancing physical infrastructure – roads, railways, urban development, and green energy projects – is expected to create numerous job opportunities. It is also anticipated to stimulate industrial growth and improve the quality of life for citizens.
The number of taxpayers has grown by 2.4 times. Tax receipts for 2024-25 are expected to be around ₹26.02 lakh crores.
You don’t need to worry about changes in personal and corporate tax rates – they are constant. This is expected to enhance compliance and expand the tax base, reflecting the doubled tax collections over the last decade.
The government is also focusing on improving the taxpayer experience by streamlining tax processes and reducing tax return processing times to 10 days.
40,000 regular rail bogies will be transformed into Vande Bharat coaches! This transformation will improve passenger safety, comfort and overall travel experience. It indicates a major advancement in India's railway infrastructure.
The Budget has also highlighted the growth of essential rail projects like Metro Rail and Namo Bharat to other cities to improve urban transportation.
Green energy is a key focus! This highlights India's commitment to eco-friendly growth and achieving zero carbon emissions by 2070.
The government has introduced support for offshore wind energy projects, starting with a 1 GW capacity. It has also emphasised cleaner energy solutions like turning coal into gas and gradually introducing compressed biogas for transportation.
The government is also going to invest in rooftop solar panels to provide at least 300 units of free electricity to 1 crore households per month. This can mean up to ₹18,000 savings per year!
The 2024 budget has set a clear path for improving India's innovation and growth. The Finance Minister announced a notable ₹1 lakh crore corpus for 50-year interest-free loans to support sectors ripe for innovation.
This initiative aims to catalyse private sector research and innovation, positioning India as a leader in global technology while ensuring inclusive growth across all societal sectors.
MSMEs are the backbone of the Indian economy. The budget outlined robust support for MSMEs and the agricultural sector. The focus is on training MSMEs to compete globally and facilitating their growth.
Similarly, the government has introduced initiatives to boost the agricultural sector and increase farmers' income. These measures are crucial for revitalising rural economies and enhancing food security.
Budget 2024 positions India on a promising path to achieving its goal of becoming a developed nation by 2047. It builds on the foundations of economic strength, sustainability, and inclusivity, ensuring rapid growth but also resilient and broad-based.
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