Union Budget Day 23 July 2024: Key Highlights and Announcements

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The Union Budget Day of 23 July 2024 has been a landmark event, unveiling a comprehensive financial plan that sets the tone for the country’s economic landscape in the coming year. This year’s Union Budget Day, presented by the Finance Minister, emphasizes growth, inclusivity, and sustainable development. Here’s a detailed look at the key highlights and announcements that are expected to impact various sectors and the general populace.

Introduction: Union Budget Day

Union Budget Day 2024 is a critical juncture for India’s economic strategy, aiming to address both current challenges and future opportunities. The budget reveals the government’s priorities and outlines its financial framework to drive economic growth, enhance public welfare, and improve infrastructure. This blog post explores the significant components of the budget, including tax reforms, fiscal policies, and sectoral allocations.

Union Budget Day 2024

Key Highlights of Union Budget Day

1. Economic Growth and Fiscal Policy

GDP Growth Target: The Union Budget Day sets a target of 6.5% GDP growth for the fiscal year 2024-25, aiming to boost economic activity and employment.
Fiscal Deficit: The fiscal deficit is projected to be 4.0% of GDP, reflecting a commitment to maintaining fiscal prudence while investing in growth-driving sectors.
Inflation Control: Measures to control inflation include tighter monetary policies and strategic reserves management to stabilize essential commodity prices.

2. Tax Reforms

Personal Income Tax: Introduction of a revised tax slab with a higher exemption limit of ₹3 lakh for individual taxpayers, aiming to increase disposable income.
Corporate Tax: Reduction in corporate tax rate to 25% for companies with an annual turnover of up to ₹500 crore, designed to encourage business investments.
GST Adjustments: Adjustments in Goods and Services Tax (GST) rates for select items to promote consumption and ease of doing business.

Healthcare: Allocation of ₹2.5 lakh crore towards healthcare, including the expansion of the Ayushman Bharat scheme to cover additional health services.
Education: Increase in education Union Budget Day by 15%, focusing on digital infrastructure, skill development, and scholarships for underprivileged students.
Pension Schemes: Enhancement of pension schemes for senior citizens with an additional ₹10,000 crore allocated for old-age benefits.

4. Infrastructure Development

Transport: Major investments in transportation infrastructure, including ₹1.2 lakh crore for the development of highways, metro projects, and rural roads.
Energy: Funding of ₹80,000 crore for renewable energy projects and grid modernization to support the transition to a green economy.
Urban Development: Introduction of smart city projects in tier-2 and tier-3 cities with an allocation of ₹50,000 crore to enhance urban living standards.

5. Agriculture and Rural Development

Farmer Support: Enhanced support for farmers through increased subsidies on fertilizers and seeds, and a new ₹30,000 crore scheme for irrigation infrastructure.
Rural Employment: Expansion of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with an additional allocation of ₹15,000 crore.

6. Defence and Security

Defence Budget: Increase in the defence budget to ₹6.8 lakh crore, focusing on modernization of armed forces and procurement of advanced technology.
Cybersecurity: Allocation of ₹20,000 crore for cybersecurity measures to safeguard national interests and critical infrastructure.

Table of Major Tax Reforms and Changes

Sector	Key Announcement	Amount Allocated	Purpose
Economic Growth	GDP Growth Target	–	6.5% for fiscal year 2024-25
Fiscal Deficit	Projected Deficit	4.0% of GDP	Maintain fiscal discipline while fostering growth
Personal Income Tax	Revised Tax Slab	₹3 lakh exemption limit	Increase disposable income
Corporate Tax	Reduced Rate	25% for turnover up to ₹500 crore	Stimulate business investment
GST	Rate Adjustments	–	Simplifying Business Operations
Healthcare	Expansion of Ayushman Bharat Scheme	₹2.5 lakh crore	Broaden health service coverage
Education	Increase in Union Budget Day	15% increase	Enhance digital infrastructure and scholarships
Pension Schemes	Enhanced Old-Age Benefits	₹10,000 crore	Support for senior citizens
Transport	Investment in Infrastructure	₹1.2 lakh crore	Develop highways, metro, and rural roads
Energy	Renewable Projects and Grid Modernization	₹80,000 crore	Transition to green economy
Urban Development	Smart City Projects	₹50,000 crore	Improve urban living standards
Farmer Support	Subsidies and Irrigation Infrastructure	₹30,000 crore	Support farmers and irrigation
Rural Employment	MGNREGA Expansion	₹15,000 crore	Increase rural employment opportunities
Defence Budget	Modernization and Procurement	₹6.8 lakh crore	Enhance armed forces capabilities
Cybersecurity	National Cybersecurity Measures	₹20,000 crore	Protect critical infrastructure and national interests

Union Budget Day 2024

Pros and Cons

Pros:

Economic Growth: The targeted GDP growth and fiscal policies are expected to stimulate economic activity and create job opportunities.
Tax Relief: Revised tax slabs and reduced corporate tax rates provide financial relief to individuals and businesses.
Public Welfare: Increased funding for healthcare, education, and pensions supports the well-being of citizens and enhances quality of life.
Infrastructure Development: Significant investments in infrastructure are likely to boost connectivity, modernize urban areas, and support a green transition.
Defence and Security: Enhanced defence budget and cybersecurity measures ensure national security and modernize military capabilities.

Cons:

Fiscal Deficit: Higher fiscal deficit could lead to increased borrowing and potential inflationary pressures.
Implementation Challenges: Effective implementation of the announced schemes and policies could face logistical and administrative hurdles.
Short-term Disruptions: Tax and GST rate adjustments may cause temporary disruptions in certain sectors before benefits materialize.

Conclusion

The Union Budget Day 2024 presents a forward-looking approach to India’s economic and social challenges. With a focus on growth, infrastructure, and public welfare, the Union Budget Day aims to foster an environment conducive to sustainable development and improved quality of life. As with any Union Budget Day, the success of these initiatives will depend on effective implementation and the ability to adapt to evolving economic conditions.

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