Budget 2024: Key Announcements Expected from Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman is set to unveil the Union Budget for the financial year 2024-25 at 11 a.m. on Tuesday. This crucial document will detail the government's revenue and expenditure plans, significantly impacting economic growth and stability across the country. Understanding the budget's implications is essential for individuals and businesses to make informed financial decisions.

Income Tax Announcements

Income tax proposals are among the most eagerly awaited elements of any budget. Previous budgets have included changes aimed at reducing the tax burden on the middle class and increasing disposable incomes.

Tax Slabs: Currently, the basic exemption limit stands at ₹3 lakh in the new tax regime. Adjustments to the tax rates for various slabs in previous budgets have aimed to alleviate the overall tax burden for many individuals.

Standard Deduction Increase: There is speculation that the government may raise the standard deduction from the current ₹50,000 to ₹1 lakh. This change would simplify tax calculations and increase disposable income for salaried employees.

Business and Industry

Provisions supporting businesses, particularly small and medium enterprises (SMEs), are expected to be a key feature of the budget.

Corporate Tax: As a major revenue source for the central government, any changes to corporate tax will significantly impact businesses. Additionally, incentives for startups and SMEs are anticipated.

Manufacturing Boost: The production-linked incentive (PLI) scheme, which has been expanded to more sectors in recent years, is expected to receive further extensions to promote domestic manufacturing and reduce reliance on imports.

Ease of Doing Business: Simplified regulations and the digitisation of processes aimed at facilitating business operations in India are expected, along with significant infrastructure announcements to improve the business environment.

Social Welfare and Infrastructure

The budget is expected to prioritise social welfare schemes and infrastructure development.

Healthcare and Education: Allocations for the healthcare and education sectors are likely, with potential investments in medical colleges and digital initiatives to improve education quality.

Infrastructure Development: Significant investments in infrastructure, including roads, railways, and urban development, are expected to create jobs and drive economic growth. A focus on renewable energy and green projects will contribute to sustainable development.

Social Security: Enhanced provisions for social security, including pensions and insurance for the underprivileged, are expected to provide a safety net for vulnerable populations.

Agriculture and Rural Development

Agriculture will remain a priority, with measures aimed at improving farmers' incomes and livelihoods.

Direct Benefit Transfers (DBT): Increased allocations for DBT schemes will ensure that subsidies and benefits reach farmers directly, reducing leakages and improving efficiency.

Rural Infrastructure: Investments in rural infrastructure, such as roads, irrigation, and storage facilities, will aim to boost agricultural productivity and connectivity.

Agri-tech Initiatives: Support for agri-tech startups and modern farming techniques will help farmers increase their yields and income.

The Union Budget 2024-25 is poised to address key economic sectors, with a focus on easing the tax burden, supporting businesses, enhancing social welfare, and boosting agriculture. As the nation awaits these announcements, the government's policies will shape the economic landscape for the coming year.