Union Budget 2024 Key Highlights - Viksit Bharat by 2047 - Vision 2047 Building India’s Future

Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 in the Lok Sabha today. 

Here are some key highlights:

1. Roadmap for ‘Viksit Bharat’ by 2047:

   The budget focuses on the government’s vision for a developed India by 2047.

2. Fiscal Deficit Target:

   The government aims to stick to the 5.1% fiscal deficit target for FY25.

3. Themes:

• Infrastructure and Housing: Expect a focus on infrastructure and housing development.
• Defence Sectors: Emphasis on defence spending.
• Job Creation: Fiscal prudence combined with capital expenditure to create jobs.
• Social Sector: Targeted spending to improve access to physical, social, and digital infrastructure.

Here are the key tax changes introduced in the Union Budget 2024-25:

1. Standard Deduction Increase:

   The standard deduction for salaried employees opting for the new tax regime has been raised from ₹50,000 to ₹75,000. This change is expected to benefit around 4 crore salaried individuals and pensioners, allowing them to save up to ₹17,500 annually in taxes.

2. Family Pension Deduction:

   The deduction on family pension for pensioners has been enhanced from ₹15,000 to ₹25,000.

3. Revised Tax Slabs for New Regime:

   • Income up to ₹3 lakh will be tax-free.
   • ₹3-7 lakh income will be taxed at 5%.
   • ₹7-10 lakh income will be taxed at 10%.
   • ₹10-12 lakh income will be taxed at 15%.
   • ₹12-15 lakh income will be taxed at 20%.
   • Income above ₹15 lakh will be taxed at 30%.

4. National Pension System (NPS) Boost:

   The deduction limit for the employer’s contribution to the NPS has increased from 10% to 14%. This change covers government employees and private companies in the NPS.

5. Securities Transaction Tax (STT) and Capital Gains Tax:

• STT on Futures and Options contracts has been increased to 0.2% and 0.1%, respectively.
• Income received on the buyback of shares will now be taxed in the hands of the recipient.

The Union Budget 2024-25 has significant implications for the healthcare sector in India:

1. Cancer Treatment:

   Finance Minister Nirmala Sitharaman exempted three critical cancer drugs from customs duties, making them more affordable. Given the high cost of cancer treatments, this move aims to improve accessibility for patients. India ranks third globally in cancer cases, following China and the United States.

2. Healthcare Funding:

   The Health Ministry received an allocation of ₹90,958.63 crore, reflecting a 12.9% increase from the previous budget. The Department of Health and Family Welfare will receive ₹87,656.90 crore, and the Department of Health Research will receive ₹3,301.73 crore.

3. Infrastructure and Innovation:

   Changes to basic customs duty for X-ray tubes and flat panel detectors used in medical X-ray machines align with domestic capacity expansion. The budget emphasizes strengthening healthcare infrastructure and digital health initiatives.

The Union Budget 2024-25 places significant emphasis on infrastructure development in India. Here are the key highlights:

1. Capital Expenditure:

   The Central Government has allocated ₹11,11,111 crore for capital expenditure, which accounts for 3.4% of GDP. This investment will drive infrastructure growth and have a multiplier effect on the economy.

2. State Support:

   States are encouraged to provide similar scale support for infrastructure aligned with their development priorities. A provision of ₹1.5 lakh crore in long-term interest-free loans has been made to assist states.

3. Private Sector Participation:

   The budget promotes private sector investment in infrastructure through viability gap funding, supportive policies, and regulations. A market-based financing framework will also be introduced.

4. Recent Trends:

   While bank credit to infrastructure sectors has shown recovery (6.5% growth in FY24), the central role in funding large-scale projects remains with Union and State Governments. External commercial borrowings and capital market issuances also contribute to infrastructure financing.

The Union Budget 2024-25 has several implications for the healthcare sector in India:

1. Cancer Treatment: Finance Minister Nirmala Sitharaman exempted three critical cancer drugs from customs duties, making them more affordable. Given the high cost of cancer treatments, this move aims to improve accessibility for patients. India ranks third globally in cancer cases, following China and the United States.
   
   
2. Healthcare Funding: The Health Ministry received an allocation of ₹90,958.63 crore, reflecting a 12.9% increase from the previous budget. The Department of Health and Family Welfare will receive ₹87,656.90 crore, and the Department of Health Research will receive ₹3,301.73 crore.
   
   
3. Infrastructure and Innovation: Changes to basic customs duty for X-ray tubes and flat panel detectors used in medical X-ray machines align with domestic capacity expansion. The budget emphasizes strengthening healthcare infrastructure and digital health initiatives.

Here are some key changes in the Union Budget 2024-25 that impact small businesses:

1. Start-up Tax Incentive:

   The start-up tax incentive will remain in effect until March 31, 2025. This measure aims to encourage entrepreneurship and innovation.

2. Bio-Manufacturing Scheme:

   A new scheme for bio-manufacturing will be launched to promote green growth. This initiative supports sustainable practices and economic development.

3. EV Ecosystem Expansion:

   The electric vehicle (EV) ecosystem will be strengthened, with support for manufacturing and charging infrastructure. This move aligns with India’s push toward cleaner mobility.

Here are the key highlights from the Union Budget 2024-25 related to education:

1. Financial Support and Education Loans:

   • The government will provide financial support for loans up to ₹10 lakh for higher education in domestic institutions.
   • Additionally, e-vouchers with an interest subvention of 3% of the loan amount will be given directly to 1 lakh students annually.

2. Skilling Initiatives:

   • Internship Opportunities: A scheme will provide internship opportunities in 500 top companies to 1 crore youth over five years. Interns will receive an allowance of ₹5,000 per month and a one-time assistance of ₹6,000.
   • ITIs Upgrade: 1,000 Industrial Training Institutes (ITIs) will be upgraded using a hub-and-spoke model. Course content will align with industry needs, and new courses will be introduced.
   • Centrally Sponsored Skilling Scheme: A new centrally sponsored scheme will skill 20 lakh youth over five years in collaboration with state governments and industry.

3. Women Empowerment:

   • To promote women’s participation in the workforce, the government will set up working women hostels and establish creches in collaboration with industries.
   • The budget allocates more than ₹3 lakh crore for schemes benefiting women and girls, signalling a commitment to enhancing women’s role in economic development.

4. Healthcare Development:

• New medical colleges will be established in Bihar to improve healthcare infrastructure and access.