Budget 2024 highlights: Focus on the middle class, MSME, and employment

Finance Minister Nirmala Sitharaman stated that the budget will focus on jobs, skilling, MSME, and the middle class.

On July 23, Union Finance Minister Nirmala Sitharman unveiled her eighth consecutive budget. The presentation on July 23 was the first Budget by the BJP-led NDA government after its re-election in June.

Ms. Sitharaman stated that the budget will prioritize employment, skilling, MSME, and middle class. The government allocated a Rs 1.48 lakh crore budget for education, employment, and skill development.

The Finance Minister outlined nine budget priorities:

Agriculture Budget

In terms of farming announcements, Ms. Sitharaman promised the introduction of farmers to natural farming, reaching self-sufficiency in pulses and oilseeds, and developing digital public infrastructure, among other initiatives.

Employment and Education Budget

The three programs included in the Prime Minister’s package will be aligned with enrolment in the Employee Provident Fund Organisation and will focus on recognizing first-time workers while also providing support to both companies and individuals.

Students who have not previously benefitted from any government initiatives will receive assistance loans of up to Rs 10 lakh for education in domestic institutions. E-vouchers will be distributed directly to 1 lakh students each year for a 3% interest subsidy on the loan amount.

A comprehensive strategy was established to provide internships in 500 leading firms to 1 crore youngsters over 5 years, allowing them to receive 12 months of real-world business experience.

Bihar and Andhra Pradesh Budget

During her address, the finance minister unveiled a number of projects for Bihar. The initiatives are part of a wider strategy called “Purvodaya,” which focuses on the overall development of eastern states like as Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. The government would develop expressways in Bihar for Rs 26,000 crore. Power plants, new airports, medical institutes, and sports infrastructure will all be built in the state.

The Finance Minister made a number of announcements for Andhra Pradesh, which voted the NDA government in the recently held general elections. The AP Reorganisation Act allocates monies to assist basic infrastructure like as water, power, and roads in order to promote industrial growth.

Budget for women

The budget allocates nearly Rs 3 lakh crore to support women-led development.

MSMEs Budget

The Budget also pays special attention to MSMEs and labour-intensive industries. Public sector banks will use a new evaluation process for MSME loans that does not rely on external assessment. This will be based on the digital presence of MSMEs in the economy, rather than just assets and turnover.

On personal income tax

The finance minister altered the tax slabs under the new administration. She informed the House that these amendments might save salaried employees up to Rs 17,500 in income taxes.

The tax rate stays unchanged, but the size of each bracket, excluding the beginning zero to Rs 3 lakh, remains the same. The previous slab of Rs 3 lakh to Rs 6 lakh has been increased to Rs 3 lakh to Rs 7 lakh. However, the 5% tax rate stays unaltered. The remaining slabs (Rs 6 to 9 lakhs, Rs 9 to 12 lakhs, Rs 12-15 lakhs, and so on) will be amended to Rs 7-10 lakhs, Rs 10-12 lakhs, Rs 12-15 lakhs, and so on.