Budget 2024 Highlights: FM Sitharaman announced the removal of direct tax demands.


The Budget 2024 highlights significant financial allocations and priorities for the upcoming year. It outlines key areas of focus and investment, ensuring responsible allocation of resources. The budget aims to address pressing needs while promoting long-term sustainability and growth.

Budget 2024 Highlights: Finance Minister announced the Interim Budget for 2024.
Finance Minister Nirmala Sitharaman announced the Interim Budget for 2024. (Pics Credit-PTI)

 

The central government announced that there would be no changes to income tax rates or other important taxes in the 2019 fiscal year. On February 1, Finance Minister Nirmala Sitharaman announced that the existing income tax brackets, which were imposed in the previous budget, will remain in place. This suggests that the current income tax slabs and rates, which apply for the fiscal year 2023-24, will be extended into the following year.

In her Budget statement, Finance Minister Nirmala Sitharaman also stated that there will be no significant changes to import tariffs over the previous year. She also developed a mechanism to reduce minor income tax demands.

In her Budget statement, Finance Minister Nirmala Sitharaman stated that the Indian economy has seen deep transformations over the previous ten years, and that the Modi government has implemented structural reforms and pro-people policies. She stated that the government will continue on its fiscal consolidation course, aiming to lower the fiscal deficit to 4.5% in 2025-26.

Key points from Nirmala Sitharaman’s Budget 2024:

 1. No changes in taxation – both direct and indirect.

 2. Tax benefits for startups, investments made by sovereign wealth, pension funds to be extended to March 2025.

3. In her interim Budget 2024 speech, Finance Minister Nirmala Sitharaman stated that the government will make considerable investments in the country’s tourism sector.

4. Nirmala Sitharaman stated that the government will assist deserving members of the middle class in building their own homes.

5. Nirmala Sitharaman announced that the government will build 20 million affordable houses over the next five years, in addition to the 30 million currently created.

6. The success of self-help groups has empowered 1 crore women to become “Lakhpati didis,” according to the government’s Budget 2024 presentation.

7. The budget deficit for FY24 is expected to be lower than the target of 5.8% of GDP; it is expected to be 5.1% in FY25, with the goal of reducing it to 4.5% by FY26.

8. “The next five years will be years of unprecedented development and golden moments to realise the dream of developed India by 2047,” said Ms. Sitharaman.

9. The government will begin a new initiative to strengthen deep technology for defence purposes.

10. India’s economy, the fastest growing among major nations, is going through profound change, Ms Sitharaman said to the thumping of desks in parliament.

11. She stated that the government’s goal is to make the country ‘Viksit’ (developed) by 2047.

12. Inflation has slowed, while economic growth has risen up.

13. Ms Sitharaman stated that tax reforms expanded the tax base and enhanced revenue collections.

14. The Finance Minister stated that India’s economy will develop at an unparalleled rate over the next five years.

15. Ms Sitharaman stated that there is a need to focus on “four major castes”: “garib” (the poor), “mahilayen” (women), “yuva” (the youth), and “annadata” (the farmer), and that their needs, aspirations, and wellbeing are “our highest priority”.

16. The government has lifted 250 million people out of poverty in ten years.
The crop insurance system will assist 40 million farmers.

17. “The government is focused on more comprehensive GDP – governance, development, performance,” said Ms. Sitharaman.

What is Interim Budget?

The interim Budget covers government spending and revenues for a limited time in an election year until a new government is formed. It describes the government’s expenditure and revenue proposals until the incoming government submits a full budget. The Union Budget, on the other hand, is an annual financial statement that covers the government’s expected spending and expenses for the next fiscal year.

What is the difference about Interim Budget and a regular Budget?

An interim budget is a shorter-term financial statement that permits the government to run normally until a new administration presents a full budget for the entire fiscal year.

Also Read: RBI prohibits Paytm Payments Banks from offering services from March 2024


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