Union Budget 2024: Sitharaman reveals growth-oriented fiscal policy

Finance Minister Nirmala Sitharaman's Budget 2024 focuses on boosting investment and growth. Key highlights include lower capital gains tax, revised income tax slabs, increased infrastructure spending, employment schemes, and support for MSMEs. The budget aims to stimulate economic development across sectors.

It is the seventh consecutive Union Budget speech that the Finance Minister Nirmala Sitharaman delivered today, a record for India’s Modi government. Among these, the measures to support investment and increase GDP were introduced in the framework of the budget across sectors.

In the same effort in trying to steer investment, Sitharaman made a cut in the capital gains tax. The overall taxation for the salaried class also changed with new alterations in standard deductions and changes in tax slabs. Some of the changes are: the income tax exemption for individual resident up to ₹3 lakh and the sur tax @ 30% on income exceeding ₹15 lakh.

The government continued to be firm on infrastructure spending with ₹11. 1 lakh crore for capital expenditure in FY25, which would be 3% higher than the FY22 level. 4% of GDP. This means that there will be further encouragement in the drive for more economic growth through public investments in infrastructure.

Employment generation and skill development were focused, five schemes focused on 4. Creating employment for one crore youth in the next five years and has a central budgetary support of ₹2 lakh crore. In the same regard, the Prime Minister announced internship for one crore youth in the best companies across the country.

Promotion of Micro, Small, and Medium Enterprises (MSMEs) and the manufacturing industry was also a focus area with measures such as credit guarantee, technology support, and opening up of more branches of SIDBI to support clusters.

On the agricultural reforms, there was an emphasis on productivity increase and the development of climate-resistant crops, while the rural development sector got a significant budgetary support of INR 2. 66 lakh crore.

Gender and women issues were also acknowledged in the budget which provided for over ₹3 lakh crore for women and girls’ schemes. Anticipated social welfare measures: The Pradhan Mantri Garib Kalyan Anna Yojana has been extended by 5 years to help more than 80 crore people.

Sitharaman especially highlighted nine focus sectors, namely agriculture, employment, manufacturing, and innovation to showcase that India has been the ‘shining exception’ amidst global headwinds.

Also Read: India, Stock Market: Ready for the Growth After the Budget?

While markets and analysts go ahead to decode the budget, the essence lies in its ability to spur growth, generate employment, and energize consumption in planned areas.