What is in the main Budget 2024:Detail are here

What is in the main Budget 2024

Introduction

The Union Budget 2024, presented by the Finance Minister, is a reflection of the government’s strategic priorities and economic vision. This budget aims to address various sectors, including jobs, inflation, defense, agriculture, education, science and technology, real estate, infrastructure, and transportation. This article provides a detailed analysis of the budget’s key provisions, highlighting what has been added, reduced, and the impact on different sectors.

Economic Overview

The Budget 2024 is framed against the backdrop of a recovering global economy, with India poised for robust growth. The government’s fiscal policy is geared towards maintaining a balance between stimulating economic activity and ensuring fiscal discipline.

GDP Growth:

• The budget projects a GDP growth rate of 7.5% for the fiscal year 2024-25.

Fiscal Deficit:

• The fiscal deficit target is set at 5.9% of GDP, down from 6.4% in the previous year, indicating a commitment to fiscal consolidation.

Jobs and Employment

Job Creation Initiatives:

• Skill Development Programs: ₹20,000 crores allocated for skill development and vocational training to enhance employability, particularly among the youth.
• MSME Support: ₹15,000 crores increase in funding for micro, small, and medium enterprises (MSMEs) to boost job creation. Initiatives include easier access to credit and subsidies for adopting digital technologies.

Reduction in Unemployment:

• Employment Schemes: ₹10,000 crores allocated for the expansion of existing employment schemes like MGNREGA and the introduction of new urban employment programs aimed at reducing unemployment rates.

Inflation Control

Measures to Tackle Inflation:

• Monetary Policy Coordination: The budget emphasizes coordination with the Reserve Bank of India to manage inflation through appropriate monetary policies.
• Supply Chain Improvements: ₹8,000 crores investment in logistics and supply chain infrastructure to reduce bottlenecks and lower the cost of goods.

Price Stabilization:

• Agricultural Interventions: Enhanced minimum support prices (MSPs) for key crops and increased storage capacities with an allocation of ₹5,000 crores to stabilize food prices.

Defense

Defense Budget Allocation:

• Increased Funding: The defense budget is increased by 12% to ₹5.94 lakh crores to bolster national security. Funds are earmarked for modernizing the armed forces and procuring advanced weaponry.
• Indigenous Production: ₹1.5 lakh crores allocated for promoting indigenous defense manufacturing under the ‘Make in India’ initiative, reducing dependency on foreign imports.

Research and Development:

• Innovation in Defense: ₹10,000 crores investment in defense research and development to foster innovation and self-reliance.

Agriculture and Farmers

Support for Farmers:

• Subsidies and MSPs: Enhanced subsidies on fertilizers, seeds, and pesticides, along with higher MSPs to ensure better income for farmers, totaling ₹1 lakh crores.
• Irrigation Projects: ₹25,000 crores increased funding for irrigation projects to improve water availability for agriculture.

Technological Integration:

• Agri-Tech Initiatives: ₹5,000 crores for the promotion of agri-tech startups and the use of AI and IoT in farming practices to boost productivity and sustainability.

Education and Students

Educational Reforms:

• Higher Education Funding: ₹50,000 crores increased allocation for higher education institutions to enhance research capabilities and infrastructure.
• School Education: ₹20,000 crores expansion of digital education initiatives and modernization of school infrastructure.

Student Support:

• Scholarships and Loans: Introduction of new scholarship programs worth ₹10,000 crores and easier access to student loans with an additional ₹5,000 crores allocation.

Science and Technology

Innovation and Research:

• R&D Funding: Significant increase in funding for research and development across various scientific disciplines, totaling ₹30,000 crores.
• Tech Hubs: Establishment of new technology hubs and innovation centers with an investment of ₹10,000 crores to foster a culture of innovation and entrepreneurship.

Digital Transformation:

• Digital Infrastructure: ₹15,000 crores investment in enhancing digital infrastructure, including expanding broadband connectivity in rural areas.

Real Estate and Housing

Affordable Housing:

• Subsidies and Incentives: Continuation and expansion of subsidies and tax incentives for affordable housing projects with an allocation of ₹25,000 crores.
• Urban Development: ₹30,000 crores increased funding for urban development schemes aimed at creating sustainable and smart cities.

Regulatory Reforms:

• Ease of Doing Business: Simplification of regulatory processes to attract more investments in the real estate sector.

Infrastructure Development

Key Infrastructure Projects:

• Transportation: Major investments in expanding and modernizing the road and rail network with an allocation of ₹1.2 lakh crores. This includes the development of new expressways and the introduction of high-speed rail projects.
• Energy Infrastructure: ₹50,000 crores increased funding for renewable energy projects and the modernization of the existing energy infrastructure to ensure sustainable growth.

Public-Private Partnerships (PPPs):

• Boosting Investments: Promotion of PPPs to attract private investments in large infrastructure projects with a focus on road, rail, and energy sectors.

Road and Transport

Transport Modernization:

• Road Network Expansion: ₹60,000 crores investment in expanding the national highway network and improving road connectivity in rural areas.
• Smart Transport Systems: ₹10,000 crores for the introduction of smart transport systems and technologies to enhance traffic management and reduce congestion.

Sustainable Transport:

• Electric Vehicles (EVs): ₹5,000 crores in incentives for the adoption of electric vehicles, including subsidies for EV buyers and investments in EV infrastructure.

Healthcare

Healthcare Funding:

• Primary Healthcare: ₹50,000 crores increased allocation for primary healthcare facilities and the expansion of healthcare coverage under schemes like Ayushman Bharat.
• Medical Research: ₹20,000 crores enhanced funding for medical research and the development of new healthcare technologies.

Public Health Initiatives:

• Disease Control: ₹10,000 crores strengthening of public health initiatives aimed at controlling communicable and non-communicable diseases.

Environmental Sustainability

Green Initiatives:

• Renewable Energy: ₹40,000 crores significant investments in renewable energy projects, particularly solar and wind energy.
• Climate Change Mitigation: Introduction of new policies and ₹20,000 crores funding for climate change mitigation and adaptation projects.

Conservation Efforts:

• Biodiversity Protection: ₹10,000 crores increased funding for the conservation of biodiversity and protection of natural habitats.

Social Welfare

Welfare Schemes:

• Women and Child Development: ₹25,000 crores enhanced funding for schemes aimed at improving the health, education, and welfare of women and children.
• Senior Citizens: ₹10,000 crores introduction of new schemes and increased benefits for senior citizens.

Poverty Alleviation:

• Direct Benefit Transfers (DBTs): ₹30,000 crores expansion of DBT schemes to ensure that subsidies and benefits reach the intended beneficiaries without leakages.

Taxation

Tax Reforms:

• Personal Income Tax: Introduction of new tax slabs and increased exemptions to provide relief to individual taxpayers, with an estimated revenue impact of ₹15,000 crores.
• Corporate Tax: Reduction in corporate tax rates from 25% to 22% to stimulate business activity and attract foreign investments.

GST Simplification:

• Compliance Ease: Simplification of GST filing processes and reduction of GST rates on certain goods and services with an estimated revenue impact of ₹10,000 crores.

Conclusion

The Union Budget 2024 is a comprehensive blueprint aimed at steering India towards sustained economic growth and development. With strategic investments in key sectors, the budget seeks to create jobs, control inflation, enhance national security, support farmers, promote education, foster innovation, develop infrastructure, and ensure social welfare. The government’s focus on sustainability, technological advancement, and ease of doing business positions India as a resilient and dynamic economy ready to tackle future challenges.

Top sectors covered

• Union Budget 2024
• Economic growth
• Job creation
• Inflation control
• Defense budget
• Agricultural support
• Educational reforms
• Science and technology
• Real estate incentives
• Infrastructure development
• Road transport
• Healthcare funding
• Environmental sustainability
• Social welfare schemes
• Tax reforms
• GST simplification

This detailed overview captures the essence of Budget 2024, highlighting the main points and the anticipated impact on various sectors.