Union Budget Highlights 2024: Key Takeaways

Budget Breakdown: Ministry/Sector-wise Budget Allocation

Here is the sector-wise expenditure breakdown of the budget:

Union Budget 2024 Key Highlights

The main components of the Union Budget 2024 consist of 1 update and 9 Viksit Bharat Priorities. Viksit Bharat or Developed India is a vision of the Central Government to transform India into a developed country by its 100th Independence in 2047. 

Let's first discuss the update before we discuss the 9 Priorities.

Budget 2024 Update on Taxation:

• Simplification of the New Tax Regime, i.e. changes in the New Tax Regime slab rates-
  
  - Rs 0-Rs 3 lakh - Nil
  - Rs 3-7 lakh - 5%
  - Rs 7-10 lakh - 10%
  - Rs 10-12 lakh - 15%
  - Rs 12-15 lakh - 20%
  - above Rs 15 lakh - 30%.
  
  
• The standard deduction for salaried employees increased from Rs 50,000 to Rs 75,000.
• The deduction on family pensions for pensioners increased from Rs 15,000 to Rs 25,000.
• Short-term capital gains (STCG) on financial assets will now attract a 20% tax.
• Long-term capital gains (LTCG) on all financial and non-financial assets will now attract a tax rate of 12.5%.
• The exemption limit on capital gains is now increased from Rs 1 lakh to Rs 1.25 lakh per year.
• The corporate rate on foreign companies was reduced from 40% to 35%.
• Angel tax is now abolished for all classes of investors.
• Securities transaction tax in option premium will be increased from 0.0625% to 0.1% and in futures the STT will be increased from 0.0125% to 0.02%.

9 Priorities of the Union Budget 2024

1) Productivity & Resilience in Agriculture

This will be carried out by taking various steps such as the transformation of agricultural research, natural farming, segregated missions for oilseeds and pulses, shrimp production and export and more.

2) Employment and Skilling

This will be carried through Employment Linked Incentives, which comprise three schemes as a part of the Prime Minister's package. It also includes several other measures such as the participation of women in the workforce, education loans, skilling programmes etc.

3) Inclusive Human Resource Development and Social Justice 

This will be carried out through the Purvodaya plan, Pradhan Mantri Janjatiya Unnat Gram Abhiyan and the setting up of India Post Payment Bank branches in North East India.

4) Manufacturing and Services

Several initiatives will be implemented such as the introduction of Credit Guarantee Scheme for MSMEs specifically in the manufacturing sector. It will also include the launch of a new assessment model for MSME credit, an extension of the mudra loan limit and more.

5) Urban Development

Under this priority, the government has proposed to develop cities as growth hubs by working together with the respective state governments. It also includes urban housing plans under the PM Awas Yojana Urban 2.0.

6) Energy Security

Under this priority, the government has proposed to take initiatives on nuclear energy by collaborating with the private sector. It also includes setting up of AUSC Thermal Power Plants and Pumped Storage Policy to facilitate a smooth storage of electricity.

7) Infrastructure

Under this priority, the Central Government has proposed to allow assistance for irrigation and flood management projects in Assam, Uttarakhand and Sikkim. Additionally, the government has also proposed to allow financial support worth Rs 11,500 crore to fund projects like Kosi-Mechi intra-state link along with 20 other ongoing and new schemes.

8) Innovation, Research & Development

The government has also proposed to fund basic research and prototype development through the Anusandhan National Research Fund. Moreover, the government is focusing on expanding the space economy by up to 5 times by setting up a venture capital fund worth Rs 1,000 crore.

9) Next Generation Reforms

Under this, the government has proposed to take several Rural and Urban land-related initiatives such as a Survey of map subdivisions as per current ownership, the introduction of a Unique Land Parcel Identification Number or Bhu-Aadhaar for all lands and more.

The Bottom Line 

Hopefully, by now you have got an overview of the Union Budget 2024, its themes, updates and priorities.

Apart from these, there are several updates in the indirect taxes. It includes simplification or reduction of customs duties over several items such as mobile phones, solar panels, medicines, precious metals such as gold, silver and platinum, electronic items and more. This reduction of indirect taxes from these items will make them more affordable, especially for middle-class Indians.