Union Budget 2024: Everything...

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Union Budget 2024: Everything You Need To Know

Union Budget 2024: Everything You Need To Know

Union Budget 2024, by Finance Minister Nirmala Sitharaman, highlighted significant measures that would be taken in the fiscal year 2024-25. The interim Budget 2024 empowers the main pillars of “Viksit Bharat”- women, youth, poor, and farmers. The government has taken various measures to uplift these marginalized sections of our society. Crores of people have been pulled out of poverty in the last decade, and free food was provided under Pradhan Mantri Garib Kalyan Anna Yojana. End-to-end support is provided to artisans under the PM Vishwakarma scheme, while credit assistance has been provided to lakhs of street vendors under the PM-SVANidhi scheme. Let’s have a glimpse at today’s budget highlights.


The finance department has kept the target for fiscal deficit at a lower level of 5.1% of the GDP for FY25. Capital expenditure has been increased by 11%, reaching INR 11.1 lakh crores for 2024-25. This will lead to the construction of modern infrastructure in our country and contribute towards employment generation. The New Budget has also created hope among the rural poor by promising to build 2 crore more homes in the next five years under PM Awas Yojana. 


Who introduced the Budget in the Parliament? 


Finance Minister Nirmala Sitharaman introduced the interim 2024 budget in the Lok Sabha today. She also prepares a speech about achievements of the past and upcoming reforms to be taken to transform India into a developed economy. While delivering budget highlights, she said that the government would take up next-generation reforms to facilitate growth, and the next five years will be of unprecedented development and golden moments to realize the dream of developed India by 2047.


What can we expect from the Union Budget 2024? 


Middle Class - 

  1. The government is going to launch a scheme for deserving sections of the middle class who are currently living in rented houses, slums, unauthorized colonies, or chawls by supporting them in buying or building their own houses. 
  1. The Lakhpati Didi scheme was introduced to empower rural women and boost the rural economy; the goal has been increased from 2 crore women to 3 crore women. 
  1. The New Budget is going to benefit the middle class through government investments in IITs, IISCs, medical colleges & AIIMS.
  1. The middle class is always severely affected by inflation; thus, controlling measures would be taken through fiscal and monetary policies.
  1. Safety and convenience of passengers would be prioritized by converting 40,000 normal rail bogeys to Vande Bharat standards.


Agriculture –  

  1. The government will formulate a strategy to achieve self-reliance in oilseeds. To tackle the needs of fishermen, a new department – Matasya Sampada, would be set up. 
  1. The ‘Nano DAP’ scheme would also be encouraged for various crops and its use would be expanded for all agro-climactic zones.
  1. New policies would be designed to uplift dairy farmers.   


Health – 

  1. Health expenditure increased from ₹79,221 crore in 2023-24 to ₹90,171 crore in 2024-25. The government plans to formulate a comprehensive scheme combining maternal and child health care schemes.
  1. Budget highlights also include the expansion of the Ayushman Bharat Scheme to all ASHA workers, Anganwadi workers, and helpers.
  1. The Centre would also encourage vaccination for girls in the age group of 9 to 14 years for the prevention of cervical cancer.  


What are key budget highlights for industries in 2024? 


Startups and Entrepreneurs -  

  1. Two important decisions have been taken to help young entrepreneurs or startups improve their businesses. The first is to create a corpus of 1 lakh crore to provide 50-year loans at low or nil interest rates to encourage the private sector to scale up research and innovate in sunrise sectors. Government subsidy on loan would help numerous entrepreneurs to transform their dreams into reality. Another announcement that has been made in the Budget is to expand tax exemptions for startups.
  1. 43 crore loans aggregating to Rs.22.5 lakh crore have been sanctioned under PM Mudra Yojana for the entrepreneurial aspirations of our youth.  
  1. The Budget also highlights that the government is prioritizing ensuring timely and adequate finances, relevant technologies, and appropriate training for Micro, Small, and Medium Enterprises (MSME) to help them grow and meet global standards. So, one can expect more MSME subsidy schemes in the upcoming financial year.
  1. The sum of ₹3,500 crore has been earmarked towards the Production Linked Incentive (PLI) scheme for automobiles and auto components, depicting a seven-fold increase in allocation. 
  1. ₹15,500 crores has been allocated for various electronics manufacturing programs, including semiconductor mission and mobile and IT hardware PLI scheme for FY25. It has also been proposed to launch ₹4,203 crore incentives for assembly, test, and packaging plants.
  1. Budget 2024 shows a promising roadmap for strengthening the agriculture, agrochemical, and dairy sectors by encouraging investment in research and development, technology, and warehousing that will empower farmers and their livelihoods.
  1. The government is also going to strengthen the EV ecosystem by supporting manufacturing and charging infrastructure.


 Renewable energy –   

  1. Renewable energy is taking center stage as budget news also includes the government’s plan to provide viability gap funding for the development of one gigawatt of offshore wind energy capacity, marking a significant step in harnessing renewable energy sources. 
  1. For the transition to more sustainable fuel sources, mandatory blending of compressed biogas in compressed natural gas for transportation and piped natural gas for domestic purposes has been announced. 
  1. To encourage sustainable energy practices, financial assistance would be provided to procure biomass aggregation machinery.


Is there any change in the tax slab in Budget 2024? 


No change has been made in the tax rates for direct and indirect taxes, including import duties. No extension of the lower tax rate to new manufacturing units coming into place after March 2024, FM clarified. To build India into an industrial hub, Budget 2024 has also extended tax benefits to startups and investments made by sovereign wealth or pension funds by one year till 31st March 2025. 


In conclusion, the government budget 2024 presents a promising outlook for boosting various industrial sectors, including agriculture, healthcare, renewable energy, MSMEs, and startups. With the creation of corpus funds and the launch of different incentive schemes in the upcoming financial year, companies can avail heavy financial advantage from the government. To grab this financial opportunity, entrepreneurs can hire subsidy consultancy services who are experts in navigating the landscape of government schemes and incentives.  


SubsidyPro helps businesses to access the financial resources they need to thrive. With our expertise and well-organized knowledge, you can easily apply for government schemes to reduce your investment and operational costs. As one of the renowned consultancies in the market, SubsidyPro is well-equipped to guide companies through the process, ensuring they can take full advantage of the opportunities presented by the budget 2024.