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Finance Minister Nirmala Sitharaman presented the Union Budget 2024 on July 23. The budget emphasizes job creation, tax relief, and sustainable agriculture. Discover the details of the Union Budget 2024 here.
Finance Minister Nirmala Sitharaman presented her seventh consecutive Union Budget on Tuesday, July 23, 2024. This budget is considered the action plan for the Modi 3.0 government, outlining a roadmap for India’s development over the next five years. With a focus on employment, tax relief, and improvements across various sectors, the Budget 2024-25 is highly anticipated by everyone.
Union Budget 2024
Finance Minister Nirmala Sitharaman presented the Union Budget 2024 on July 23, highlighting key areas such as employment, tax relief, and sustainable agriculture. Key initiatives include raising tax exemption limits for the middle class, offering one month’s wage to new workers, and encouraging natural farming for one crore farmers. The budget also prioritizes manufacturing, urban development, and energy security, aiming to enhance India’s economic growth and resilience.
| Category | Details |
| Date Presented | 23-Jul-24 |
| Finance Minister | Nirmala Sitharaman |
| Key Focus Areas | Employment, Tax Relief, Agriculture, Manufacturing |
| Middle-Class Relief | Increased tax exemption limits under both tax regimes |
| Employment Initiative | One month’s wage for new workforce entrants |
| Agriculture | Natural farming for 1 crore farmers over 2 years |
| Priorities | Agriculture, Employment, Human Resources, Manufacturing, Urban Development, Energy Security, Infrastructure, Innovation |
| Economic Outlook | Continued growth, stable inflation |
Union Budget 2024: How Tax Rates for Individuals Changed?
Tax rates for individuals in India have changed significantly over the years, dropping from a high of 97% in the 1980s to 42% in the Budget 2024. Major reforms in the early 1990s lowered the top rate to 40%, and further adjustments brought it down to 30% for most taxpayers. The latest changes in Budget 2024 include a top rate of 42% with a 12% surcharge for high incomes. These changes aim to boost revenue while supporting economic growth.
Key Highlights and Expectations of Union Budget 2024
Focus on Middle-Class Relief
Experts anticipate that Finance Minister Nirmala Sitharaman will announce an increase in the basic exemption limits under both the old and new tax regimes. This change is expected to offer substantial relief to the middle class, addressing their long-standing demands for tax reductions.
Employment and Skilling
A major highlight of the Budget is its focus on employment and skills development. Finance Minister Sitharaman announced a new scheme where the government will provide one month’s wage to all first-time workers across various sectors. This initiative is designed to boost job creation and support new entrants as they start their careers.
Agriculture and Natural Farming
The Budget also strongly focuses on agriculture. Nirmala Sitharaman announced that one crore farmers will be introduced to natural farming over the next two years. This initiative is intended to promote sustainable agricultural practices and reduce reliance on chemical fertilizers and pesticides.
Key Focus Areas
Nirmala Sitharaman outlined nine key priorities in her Budget speech:
- Productivity and resilience in agriculture
- Employment and skilling
- Improved human resources and social justice
- Manufacturing and services
- Urban development
- Energy security
- Infrastructure
- Innovation, research, and development
- Next-generation reforms
Economic Growth and Inflation
The Finance Minister highlighted that India’s economic growth remains robust and is expected to continue strong in the coming years. Inflation is stable and moving towards the 4% target, reflecting the effectiveness of the government’s economic policies.
Union Budget 2024: Special Focus on Bihar and Andhra Pradesh
In the Union Budget 2024, Finance Minister Nirmala Sitharaman highlighted major development initiatives for Bihar and Andhra Pradesh. This focused attention underscores the strategic importance of the Telugu Desam Party (TDP) and Janata Dal (United) (JD (U)) as key allies in the NDA coalition after the recent Lok Sabha elections.
Key developments for Bihar:
Financial Assistance: The Union government will provide financial support to Bihar through aid from multilateral development agencies.
Purvodaya Plan: A comprehensive development plan called Purvodaya will be implemented for Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.
Infrastructure Investments: The budget proposes ₹26,000 crore for road projects in Bihar. Additionally, plans include establishing new airports, medical colleges, and sports infrastructure in the state.
Tourism Development: Major tourism projects include developing corridors around the Vishnupad temple in Gaya and the Mahabodhi temple in Bodhgaya. Nalanda will be developed into a tourism hub, and Rajgir will be enhanced as a key site for Hindu, Buddhist, and Jain tourism.
These announcements come as Bihar gears up for state elections next year. The BJP hopes these initiatives will strengthen the BJP-JDU alliance’s position.
Key Developments for Andhra Pradesh:
- Amravati Development: ₹15,000 crore will be allocated for the development of Amravati, the capital of Andhra Pradesh. The funding will come from multilateral agencies and be routed through the Centre.
- Polavaram Project: The budget reaffirms the commitment to completing and financing the Polavaram irrigation project.
- Industrial and Regional Development: Funds will be allocated for essential infrastructure, including water, power, railways, and roads. Backward regions like Rayalaseema and North Coastal Andhra Pradesh will receive grants as outlined in the AP Reorganization Act.
Pre-Budget Activities and Market Reactions
Cabinet Approval
Earlier in the day, the Cabinet, chaired by Prime Minister Narendra Modi, approved the Union Budget 2024. This approval is an essential step before the Finance Minister presents the Budget in Parliament.
Market Movements
Before the Budget presentation, the Sensex opened 220 points higher at 80,740, and the Nifty was up by 59 points. However, the markets showed some volatility, with both Sensex and Nifty trading in negative territory just before the Budget announcement.
Impact of Budget 2024
In the 2024 Union Budget, Finance Minister Nirmala Sitharaman announced several changes to customs duties and proposed adjustments to support various sectors. Here’s a summary of the key points:
Items Becoming Cheaper
| Category | Items | Details |
| Healthcare | Cancer Drugs | Reduction in customs duty aims to make life-saving medications more affordable. |
| Healthcare | Medical X-ray Machines | Lowering duties could enhance access to diagnostic equipment in healthcare facilities. |
| Technology | Mobile Phones and Chargers | Duty cuts expected to reduce retail prices, benefiting consumers and potentially boosting demand. |
| Energy | Equipment Using Solar Cells and Panels | Encourages the adoption of renewable energy by reducing the cost of solar technology. |
| Aquaculture | Fish and Shrimp Feed | Decrease in costs could benefit the industry by making feed more affordable. |
| Consumer Goods | Leather Goods | Lower customs duties may reduce production costs and retail prices for leather products. |
| Consumer Goods | Footwear | Reduction could benefit both consumers and the domestic footwear industry. |
| Manufacturing | Textiles | Lower duties could reduce costs for manufacturers and consumers. |
| Jewelry | Gold, Silver, Platinum Making Charges | Decrease in making charges could lower the overall cost of jewelry |
Items Becoming Costlier
| Category | Items | Details |
| Agriculture/Industry | Ammonium Nitrate | Increase in duty may impact costs for agriculture and industries using ammonium nitrate. |
| Advertising/Marketing | PVC Flex Banners | Higher duties might increase costs for businesses relying on PVC banners for marketing. |
| Telecommunications | Imported Telecom Equipment | Increased costs could affect telecommunications infrastructure and consumer prices |
Major Announcements and Initiatives
First-Time Worker Scheme
To encourage employment, the government will offer one month’s wage to all first-time workers across various sectors. This initiative aims to support new entrants into the workforce and stimulate job creation nationwide.
Natural Farming Initiative
The government plans to introduce one crore farmers to natural farming over the next two years. This initiative aims to promote sustainable agricultural practices and reduce reliance on chemical inputs.
Focus on Key Sectors
The Budget prioritizes several key sectors, including:
- Agriculture and natural farming
- Employment and skilling
- Human resources and social justice
- Manufacturing and services
- Urban development
- Energy security
- Infrastructure
- Innovation, research, and development
- Next-generation reforms
Prime Minister’s Statement
Prime Minister Narendra Modi expressed confidence in the Budget, stating it would provide a robust action plan for India’s development. He emphasized that the government’s guarantees would benefit the common man and highlighted the importance of the Modi 3.0 government’s first budget in its third term.
Union Budget 2024 UPSC
Budget 2024, presented by Finance Minister Nirmala Sitharaman, emphasizes employment, tax relief, and sectoral improvements. With initiatives designed to boost job creation, support the middle class, and promote sustainable agriculture, the Budget outlines a comprehensive roadmap for India’s development over the next five years. Stay tuned for more updates and detailed analysis of the Union Budget 2024.
FAQs Union Budget 2024
Finance Minister Nirmala Sitharaman will set a record by presenting her seventh consecutive budget, which includes six annual budgets and one interim budget.
India's first budget was presented on February 18, 1860, by James Wilson. P.C. Mahalanobis is recognized as the father of the Indian budget.
Sitharaman holds the record for the longest budget speech, which lasted two hours and 40 minutes during her presentation on February 1, 2020.
Ramasamy Chetty Kandasamy Shanmukham Chetty served as the first Finance Minister of Independent India. The country’s first budget was tabled on November 26, 1947, during his tenure, and the Planning Commission was introduced.
The Union Budget of India, also known as the Annual Financial Statement as per Article 112 of the Constitution of India, is set by the Ministry of Finance for the upcoming financial year. The revenues are collected by the Department of Revenue.