Posted on July 26, 2024
Unprecedentedly, the Union Budget for July 2024 would be announced by Finance Minister, Nirmala Sitharaman as a policy document guide to steer India’s economy amidst various adversities around the world. This budget shows the stands of the government of the country in regards of economic development, sustainability and concerns of various segments within the society. Down here are provided the condense to the Union Budget July 2024:
Economic Overview
The components of the budget focus on continuous growth with a forecasted real GDP growth of 6 percent. 0. 03% for the fiscal year 2024-25 and 5% of grade pay, whichever is higher for the fiscal year 2025-26 onwards. Hinging on this optimism, the forecast has been informed by several structural changes and policies drawn towards the improvement of the nation’s economic stability and generally creating a conducive atmosphere for investment.
Tax Reforms and Relief
Personal Income Tax
It might be argued that one of the most striking features of this budget is the measures that were introduced to lessen the burden of taxes on individual taxpayers. The Finance Minister lives to raise the basic tax exemption limit to ₹ from ₹2 . Rs. 5 lakh to ₹3 lakh. Furthermore, the tax slabs have been redesigned greatly for the middle class people to be given some form of relief. The new structure of taxes has admirable objectives since it strives to make the process of taxation easier and the amount of money demanded from the taxpayers less.
Corporate Tax
In the respect to the corporate taxation, the government of India has brought changes by proposing a cut in the corporate tax rate from 25% to up to ₹400 crore turnover from 22%. This is seen as likely to increase the returns on investment for the SMEs and in turn foster investments on the sector.
Infrastructure Development
Thus, introducing back infrastructure projects as one of the pillars of the budget, incorporating ₹10 lakh crore for various projects. Key initiatives include:
National Highways Development: Loans Sanctions to the tune of ₹1. 5 lakh crore for enhancement and specialization of National Highways.
Urban Infrastructure: ₹50,000 crore set apart for the creation of smart city and for other infrastructure in urban areas.
Railways: ₹ 2 lakh crore out of which railway infrastructure will be modernised, new generation high-speed trains set in motion and the metro services in the big cities will embrace more dimensions.
Agriculture and Rural Development
Being aware of the impact of the agricultural sector in the country, the budget provides for ₹2. 5 lakh crore towards the development of agriculture farming and rural areas. Key measures include:
Increased MSP: Currently, the government has increased MSP for some of the crops stating that it will only help farmers get a better income.
Irrigation Projects: ₹50,000 crore earmarked for completion of projects on drinking water supply and irrigation for which funds were earlier lapsed to meet the exigencies of the State to facilitate better availability of water for agricultural activities.
Rural Employment: Additional allocation of funds for developmental work through MGNREGA so that at least 100 days of work is provided to all the labors who makes themselves available for the work in rural regions.
Education and Skill Development
In the budget, education as well as skills as factors that will help fuel the economy has been stressed. Key allocations include:
School Education: Outlay of ₹1 lakh crore for School Education mainly for infrastructure development of schools and for execution of NEP 2020.
Higher Education: ₹50000 crore for developmental expenditure for the corridor of Higher education institutions and research and innovation.
Skill Development: ₹20,000 crore for skill development programs which will finally help the youth populace to improve their chances of employment.
Health and Social Welfare
In the wake of the pandemic, health and social welfare have been given significant attention: In the wake of the pandemic, health and social welfare have been given significant attention:
Healthcare: ₹1. Rs 2 lakh crore for health care and dispensing priority health care along with the covering more people under the Ayushman Bharat scheme.
Social Welfare: Increased financial support for the social welfare programmes including women, children and the elder ones. The budget also has proposed plans to enhance the ways of delivering social services through digital platforms.
Environment and Sustainability
The budget underscores the government’s commitment to environmental sustainability with a focus on green energy and climate action:The budget underscores the government’s commitment to environmental sustainability with a focus on green energy and climate action:
Renewable Energy: Outlay of ₹50,000 crore for renewable energy including solar and wind power electricity.
Electric Vehicles: Subsidies relating to the promotion of the use of electric cars and the charging of electric cars.
Climate Action: Proceeds for the programs that could help address the climate change issue or support environmentally friendly ventures.
Conclusion
It is generally called the Union Budget July 2024 containing programs and policies to meet the requirements of Indian economy. It is an equilibrium of growth and stability where there is heavy emphasis on critical areas of infrastructure, agriculture, education, health and social amenities. The government’s proposed changes to the taxation system and taxation incentives for different industries are expected to spur spending and encourage a more sustained, equitable, and stable pattern of the country’s growth. Looking at the challenges facing the nation in the coming years this financial year’s budget propounds the cornerstone of a prosperous tomorrow.