Budget Overview: On July 23, 2024, Finance Minister Nirmala Sitharaman presented the Union Budget for the third NDA government under Prime Minister Narendra Modi. The budget focuses on macroeconomic stability, political strategies, and targeted aid to key states.
Announcements:
1, Capital Gains Tax Hike: The Long Term Capital Gains tax will increase from 10% to 12.5% to boost revenue, responding to recent jumps in equity investments and profit booking.
2. Standard Deduction Increase: Taxpayers in the highest bracket (Rs 15 lakh or more) will benefit from a Rs 7,500 saving due to an enhanced standard deduction limit under the NTR. Other income tax slab adjustments could potentially save up to Rs 17,500 annually.
3. Special Packages for Andhra Pradesh and Bihar: Rs 15,000 crore is allocated for developing Amaravati as Andhra Pradesh’s capital, while Bihar receives substantial support for infrastructure and tourism, aiming to secure political support from key allies.
4. Climate Finance Taxonomy: A new climate finance taxonomy will be developed to guide investments in climate adaptation and mitigation, supporting India’s green transition.
5.Agriculture and MSME Support: Initiatives include a digital crop survey covering 6 crore farmers and a comprehensive scheme to provide internships for 1 crore youth. MSME credit mechanisms will be improved to address sector challenges.
6. Space Economy Push: A Rs 1,000 crore venture capital fund will be established to expand India’s space sector, aiming for a five-fold growth in the next decade.
7. Digitisation of Land Records: Urban land records will be digitised with GIS mapping, improving property tax collections and urban development.
8. Infrastructure Investments: The fourth phase of the Pradhan Mantri Gram Sadak Yojana (PMGSY) will connect 25,000 habitations with all-weather roads. Additionally, the Pradhan Mantri Awas Yojana-Urban 2.0 will see an investment of Rs 10 lakh crore to build 1 crore urban houses.
Market Reactions: – The BSE Sensex and NSE Nifty experienced initial declines but later recovered.
Political Context: – The budget’s focus on Andhra Pradesh and Bihar reflects a strategy to solidify support from major NDA allies ahead of upcoming elections. No special packages were announced for Maharashtra or Haryana, indicating a strategic focus on long-term political stability.
Additional Developments: – A new National Cooperation Policy will be introduced to modernize the cooperative sector. – Significant investments in manufacturing, research on small modular nuclear reactors, and development of tourism infrastructure in Bihar are also part of the budget’s agenda.
For real-time updates and detailed analysis, follow The Indian Express’s live blog of the 2024 Union Budget.
