The much-anticipated move, the Union Budget for the fiscal year 2024 was presented by the Finance Minister, Nirmala Sitharaman on 1st February 2024, which starts April 1, 2024.

The budget ushered in a wave of transformative changes, particularly in the Goods and Services Tax (GST) framework. The amendments aim to simplify processes, boost compliance, and stimulate economic growth.

While the Indian taxpayers did not find much relief from the announced budget, the government remained on its commitment to fiscal consolidation, focusing on its interest in capital expenditure and other social welfare services.

The FM, yet again rendered support for ‘castes’, the categories referred to by Prime Minister Narendra Modi, namely farmers, young people, women, and the poor.

Sitharaman before announcing the budget stated, “The next five years will be years of unprecedented development and golden moments to realize the dream of a developed India by 2047”.

In this article, we will glance through the key highlights announced in the budget.

Here are the key takeaways from Union Budget 2024:

1. Taxation Measures
   FM Sitharaman declared that there would be no alterations to the tax structure, whether direct or indirect. However, for another year, sovereign wealth funds and pension funds will continue to enjoy tax-free status. The government is now estimating total revenue receipts in FY25 at Rs 30 lakh crore, reflecting an increase from the revised estimate of Rs 26.99 lakh crore in FY24.Further, the processing time of tax returns has been reduced from 93 days in FY14 to 10 days and tax base of GST more than doubled, says FM. Also, the number of tax filers swelled by 2.4 times and direct tax collection has trebled since 2014.
2. Fiscal Consolidation
   The government has repeatedly stated that it intends to follow the path of fiscal discipline and reduce the deficit to 4.5 percent of GDP by FY26. FM Sitharaman reduced the fiscal deficit from the original target of 5.9 percent of GDP to 5.8 percent in the interim budget. Five percent of GDP is the target for FY 25. For FY 25, the government plans to borrow a net amount of Rs 11.75 crore, while the Centre would borrow a gross amount of Rs 14.13 crore.In addition, the budgeted estimate for defense in FY25 increased by 4% to Rs 6.2 crore from Rs 5.94 crore in FY24.
3. Infrastructural Upliftment
   FM Sitharaman stated that the budget for capital expenditure outlay for FY25 has seen an 11 percent increase to Rs 11.11 lakh crore, equivalent to 3.4 percent of GDP. She highlighted that the tripling of capex over the last four years has generated a multiplier effect on economic growth and employment.The plan includes converting approximately 40,000 normal rail bogies to Vande Bharat Standards to increase passenger safety and comfort. Additionally, the implementation of three major economic railway corridors—energy, mineral, and cement corridors, port connectivity corridors, and high-traffic density corridors—is in the pipeline.
4. Housing Benefits
   Under Pradhan Mantri Awas Yojana (Gramin), the government aims to construct 2 crore additional houses in the next five years. Moreover, Sitharaman announced the launch of a new housing scheme for the middle class to facilitate citizens in purchasing or constructing houses. The FM further announced the construction of 10 million houses and free electricity via rooftop solar programme.
5. Nari Shakti
   The government has provided 30 crore Mudra Yojana loans to women entrepreneurs. Girls and women now make up 43 percent of enrollment in STEM courses, one of the highest rates globally. She stated, “Over 70 percent of houses under PM Awas Yojana have been allocated to women from rural areas.” The government plans to promote Cervical Cancer Vaccination for girls aged 9-14. They will expedite Saksham Anganwadi and Poshan 2.0 for improved nutrition delivery, early childhood care, and development.
6. Tourism Push
   The government plans to incentivize states to develop iconic tourist centres. Additionally, it will offer long-term interest-free loans to states to foster development. The government announced, “Projects for port connectivity, tourism infrastructure, and amenities will be taken up in islands, including Lakshadweep.”

More Takeaways:

PLI Scheme

• PLI scheme gets Rs 6,200 crore

Agriculture

• Encourage investment in post-harvest activities with support from both the private and public sectors.
• Empower dairy farmers to enhance their capabilities and contributions to the agricultural sector.
• Strengthen efforts to control Foot and Mouth Disease for better livestock health.
• Expand the application of Nano-DAP in all agro-climatic zones to improve agricultural productivity.
• Provide crop insurance to 4 crore farmers under the PM Fasal Bima Yojana.
• Establish five integrated Aqua Parks to boost the aquaculture industry.
• Launch Blue Economy 2.0 to promote sustainable development in aquaculture.
• Implement the Pradhan Mantri Matsaya Sampada Yojana to enhance the fisheries sector.

Sunrise Tech

• FM Nirmala Sitharaman proposes Rs 1 lakh crore corpus to invite private investment in sunrise technologies

Healthcare

• Extend healthcare facilities under Ayushman Bharat to all Aasha workers and Aanganwadi workers.
• Plan to establish hospitals in all districts for broader healthcare access.
• Initiate vaccination programs for cervical cancer targeting girls aged 9-14.
• Expedite Saksham Anganwadi and Poshan 2.0 for enhanced nutrition delivery and early childhood care.

Education

• Education budget for 2024/25 is seen at Rs 1.25 lakh crore, 14.5 per cent higher than the revised estimate of Rs 1.1 lakh crore for 2023/24

Renewable Energy

• Provide viability gap funding for wind energy projects.
• Establish coal gasification and liquefaction capacity.
• Implement phased mandatory blending of CNG, PNG, and compressed biogas.
• Offer financial assistance for the procurement of biomass aggregation machinery.
• Enable 1 crore households to receive up to 300 units of free electricity per month.

Quoting FM Nirmala Sitharaman during the budget announcement, “In the last five years, our focus has been to improve tax-payer services. The age-old jurisdiction-based assessment system was transformed with the introduction of Faceless Assessment and Appeal, thereby imparting greater efficiency, transparency and accountability. Introduction of updated income tax returns, a new Form 26AS and prefilling of tax returns have made filing of tax returns simpler and easier”.

The government’s unwavering commitment to fiscal responsibility, economic expansion and social welfare is reflected in the Union Budget 2024. The tax structure and infrastructure development measures that have been announced show a proactive approach towards creating a robust and sustainable economy. Emphasis on digital transformation, process streamlining and targeted interventions across multiple sectors demonstrate a well-defined vision of inclusive development.