Budget 2024: Key Highlights and Developments

Date: July 23, 2024

 

11:04 AM: India’s economic growth continues in the light of recent global inflation. The country’s inflation is currently at 3.1% and moving towards 4% steadily.

 

11:06 AM: Higher minimum support prices. 50% margin over cost for all major crops. 

 

11:07 AM: Provision of ₹1.48 Lakh Crores made for education.

 

11:07 AM: Prime Minister’s five Schemes for 1.5 crore youth worth has been successful. 

 

11:11 AM: The government will undertake a comprehensive review to develop climate-resilient farming. 32 field and horticulture crops will be released by farmers. In the next two years, 1 crore farmers in the country will be initiated into natural farming with certifications.

 

11:12 AM: Missions for pulses and oil seeds - mustard, groundnut, sesame, soybean, and sunflower, to be initiated. 

 

11:13 AM: 

• Large scale clusters of vegetable productions. Supply chains, collection, storage, and distribution of the produce to be supported by the government.

• Kissan credit cards will be enabled in five states. 

• Shrimp production and nucleus breeding centres will be provided. Financing for shrimp farming and export will be facilitated by the central government.

 

11:14 AM: 

• 6 crore sq. acres of land of farmers will be brought into land record registries.

• Employment linked incentives as part of the PM package to be provided based on recognition. 

 

11:15 AM:

• Scheme A: First timers. This scheme will provide 1 month wage to the workforce in all formal sections.

• Scheme B: Job creation will incentivise first time employees. Will be provided to both employee and employer with respect to the EPFO contribution. Expected to support 13 lakh youth.

 

11:16 AM: Scheme C: Expected to benefit up to 30 lakh youth and provide additional employment across industries. This scheme aims to provide employers with reimbursement of up to ₹3,000 per month for the next two years for every additional employee’s EPFO contribution. 

 

11:18 AM: Education loan of up to ₹10 Lakh for higher education in domestic institutions to be given. E-vouchers will be given to 1 lakh students every year. Covers up to 3% of the loan amount.

 

11:20 AM: Credit guarantee schemes for MSMEs for purchase of machinery and equipment without collateral or third party guarantor will be introduced.

 

11:21 AM: Plan to be developed for the all-round development for several states. This will be done with a focus on infrastructure.

 

11:22 AM: Road development projects to be undertaken for several regions for a cost of ₹26,000 Crores.

 

11:23 AM:  Vikasit Bharat - Development of the eastern region of the country, including Assam, Jharkhand, and Orissa. Government to develop infrastructure and offer economic opportunities. 

 

11:24 AM: Support for capital investments will be provided. Help from banks to the Bihar state government will be expedited as requested.

11:25 AM: Government to facilitate special financial support through multilateral agencies in this fiscal with ₹15,000 Crore to Amravati, Andhra Pradesh.

 

11:26 AM: 

• Higher participation of women expected. Women specific skilling programs to be launched. Modern skill loan scheme to be offered of up to ₹5 Lakhs. Expected to aid 25,000 students each year.

• Additional allocation will be provided for capital investment for economic growth.

•  3 crore additional houses under PM Awas Yojana to be provided.

 

11:27 AM: Pradhan Mantri Jan Jati Unnat Gram Abhiyaan to be launched for the progress of tribals. Development of 63,000 villages is expected.

 

11:28 AM: 

• Provision of ₹2.66 Lakh Crores made for rural development.

•  Support for promotion of MSMEs for labour intensive manufacturing and technology support to help them compete globally.

 

11:29 AM: Credit guarantee scheme - Term loans for purchase of machinery without collateral or third party guarantor to be launched. Guaranteed cover of up to ₹100 Crores while the price of the equipment might be higher.

 

11:30 AM: New assessment model for the MSMEs to be built by public sector banks leading to the creation of a formal accounting system for MSMEs.

 

11:31 AM: Credit Availability for Mudra Loans announced. Mandatory onboarding to facilitate MSMEs. Reduce the turnover threshold from ₹500 Crores to ₹250 Crores.

 

11:32 AM:

• SEBI will serve all MSME clusters within three years. 24 branches to be opened this year. Expected to expand to 168 out of 242 clusters. 

• Up to 100 food quality and safety testing plants to be set up.

• Credit support to MSMEs during stress periods - new mechanism of bank credit support through government-provided funds. 

 

11:33 AM: E-commerce export hubs will be set up in public-private partnership mode.

 

11:34 AM: 

• Development of industrial parks will be carried out in 100 cities in partnership with private sectors. 12 industrial parks under the corridor program will be sanctioned.

• Internship in top-companies. Government will launch a scheme to provide internships and similar opportunities to 1 crore youths in 5 years. Youth to receive exposure for 12 months and a 1-time assistance of ₹6,000.

 

11:35 AM: 

• Industrial workers will be provided with rental housing with dormitory type accommodation in PPE mode.

• 12 industrial parks under the corridor program will be sanctioned.

 

11:36 AM: 

• Ownership and leasing will be provided to the shipping industry.

• Critical mineral mission for recycling. Development of technology, skilled labour, and suitable financing mechanism announced. 

 

11:37 AM: Off-shore mining of minerals. First off-shore blocks for mining to be funded by the government, exploration for which is already being carried out.

 

11:38 AM: National Company Law Tribunal established for direct recovery of ₹3.3 Lakh Crores. Additional tribunals will be established. Steps for reforming and recovering will be taken. 

11:39 AM: Government will facilitate the development of states as growth hubs. It will facilitate the planning of urban areas and town planning schemes.

 

11:40 AM:

• Transit oriented development plans for 14 lakh cities.

• Urban housing - Under PM AWAS Yojana the housing needs for 1 crore urban poor people will be looked into. ₹2.2 Lakh Crores will be allocated towards this over the next five years.

 

11:41 AM: 

• Water Supply and Sanitation: In partnership with the state, promotion of water supply and sewage treatments for 100 large cities will be undertaken. 

• PM Svanadhi scheme to support the development of street food hubs in select cities over the next 5 years.

 

11:42 AM: 

• Policy on appropriate energy transition pathways for growth and environmental sustenance undertaken.

• Stamp duty - the government to encourage states to charge high stamp duty to moderate rates. This will be essential for urban development schemes.

 

11:43 AM: 1 crore households will get free electricity of up to 300 units each. 1.8 crore registrations have already been received. Government to partner with the private sector for setting up small reactors.

 

11:45 AM: R&D funding announced in the interim budget will be made available. Research and development of small reactors and research of new technologies to be done in partnership with private organisations in India. 

 

11:46 AM: 

• Development of high-grade steel and other materials announced. 

• Support to traditional micro and small industries in 60 clusters will be facilitated.

• Priority 7: Infrastructure investment by the central government announced.

 

11:47 AM: Strong fiscal support to be given to infrastructure for the next five years.

 

11:49 AM: 

• Investment in infrastructure by private gap-funding structure.

• Irrigation benefit program ₹11,500 Crores. Irrigation and flood mitigation  - Plans to build flood control structure yet to be developed. 

 

11:50 AM: 

• Pradhan Mantri Gram Sadak Yojana to provide all weather connectivity to 25,000 rural habitations.

• Government to provide assistance for flood management, reconstruction, and rehabilitation. 

• Tourism to create jobs and more economic opportunities for other sectors. Temples in Bodhgaya in Bihar to be developed. 

• CAPEX for FY25 set a ₹11.11 Lakh Crores, says FM.

 

11:54 AM: 

• Government to provide assistance for development of tourism in Assam. 

• Private sector-backed research on a commercial scale. Venture capital fund of ₹1000 Crores will be set up.

 

11:57 AM: Land records in urban areas will be digitised with mapping.

11:58 AM: Government to facilitate a wide array of reforms to labourers.

 

11:59 AM: 

• To meet the financial needs of the economy. Government to prepare a strategy document and set the agenda for the next 5 years.

• Climate Finance Taxonomy - Enhancing the availability for capital adaptation.

 

12:00 PM: 

• Flexible mode of financing aircrafts and ships announced. 

• NPS Vatsal - Contribution by parents and guardians - will be started. 

 

12:01 PM: Data and statistics for improving data governance and databases will be done with the help of the latest technological tools.

 

12:02 PM:

• Jan Vishwas Bill 2.0 - States will be incentivised for business reform action plans. Expected to enhance ease of conducting business.

• New Pension Scheme - The committee reviewing this scheme has made considerable progress for central government employees. 

 

12:03 PM: Integration of the e-Shram portal with others to be undertaken.

 

12:04 PM: Budget Estimates for FY 24-25: 

• Total Receipts Other than borrowings - ₹32.07 Lakh Crores 

• Fiscal deficit - 4.9% of the GDP

• Market Securities - ₹14.01 Lakh Crores, less than FY23-24

• Aim to keep fiscal deficit below 4.5% next year 

 

Aim to reduce the central government debt will be on the declining path. 

 

12:05 PM: 

• Government to reduce GST compliance burden on central and state. Reform for sections expected. Reduction in custom duties rate to be reviewed.  

• Three more cancer medicines to be fully exempt from customs duty.

 

12:06 PM:  Mobile phone and related parts -  3-fold increase in domestic productions. Government proposes to reduce the BCD (Basic Customs Duty) on mobile phones, PCBs, and chargers.

 

12:07 PM: BCD to be reduced on two out of the several rare earth elements, including lithium, copper, cobalt etc. Expected to improve processing and refining. 

12:08 PM: 

• Solar Energy - Increase in list of capital-exempt goods for solar panels, etc. Not to extend the custom duties.

• Marine Products - Touched an all time high of ₹60,000 Crore. Shrimp accounted for 2/3rd of this. Reduction of BCD on certain good stock expected. Exempt custom duties on shrimp.

 

12:09 PM: Leather and Textile - Reduced BCD on duck and goose.

 

12:10 PM:

• Customs duties have been exempted on 25 vital minerals, and BCD lowered for two amongst them.

• Precious metals - Customs on silver and gold to drop to 6%; Platinum to fall to 6.4%. 

12:12 PM: 

• Domestic electronics - BCD reduced on oxygen-free copper.

• Increased BCD on Ammonium Nitrate to 10%.

 

12:13 PM: 

• Period of export imported for repairs extended from 6 months to 1 year.

• Over 2/3rd of taxpayers have availed of the new personal income tax regime in the last fiscal. 

• 58% of corporate tax filing came from the new regime for FY 21-22. Comprehensive review of the income tax act to simplify the provisions. To be completed in 6 months. Tax regime to be simplified for charities, capital gains taxation, and so on.

 

12:14 PM: Simplification for charities and TDS - Two tax regimes for charities to be merged into one.

 

12:15 PM: TDS on e-commerce operations to be reduced.

 

12:16 PM: 

• Standard operating procedure for compounding guidelines of defaults in tax filing. Reassessment can be opened after 3 years up to 5 years only if the income is over ₹50 Lakhs.

• Two tax exemption regimes have been merged for charities.

 

12:17 PM: 

• Capital gains taxations to be hugely simplified.That on all other financial assets should continue with the same rate of 12.05%.

• 20% tax on short term assets announced.

 

12:18 PM: 

• Unlisted bonds and debentures, irrespective of holding period, will attract applicable tax.

• Listed financial assets over 1 year are classified as long-term. Meanwhile, unlisted assets must be held for at least 2 years to be termed as long-term.

• Taxpayer services under GST and customs have been digitalised.

 

12:19 PM: Monetary limits for filing appeals to ₹60 Lakhs, ₹3 Crores, and ₹5 Crores to district, high, and supreme courts, respectively.  

 

12:20 PM: 

• Expansion of safe harbour roads is expected to make them attractive.

• Angel tax for all classes of investors has been abolished.

• Certain financial assets under short-term financial gains to attract 20% TDS.

 

12:21 PM: Simpler tax regime for foreign shipping companies.

 

12:22 PM: 

• For Indian employees working at MNCs, not reporting ESOPS and other movable assets has penal consequences.

• Social security benefits - Increased from 10% to 14% from the employer’s contribution to NPS. 

 

12:23 PM: 

• Personal income tax under the New Tax regime - Standard Deduction for salaried employees increased ₹75,000 from ₹50,000.

• Angel tax to be abolished for all investor calls, announces the Finance Minister.

 

12:24 PM: 

• Deduction on family pension for pensions to be enhanced from ₹15,000 to ₹25,000. This gives a relief to 4 crore salaried and pensioners.

• New tax slabs:

Date: February 1, 2024

 

Check this space for more updates on Budget 2024!

 

11: 58 AM: Interim Budget 2024: FM raises capex target by 11.1% to ₹11,11,111 Crores; FY25 fiscal deficit budgeted at 5.1% of GDP.

 

11:56 AM: Tax incentives for startups. Focus to remain on domestic tourism, to aid in generating employment. Direct tax collection over the last ten years has tripled.  

 

11:54 AM:

• Tax filing to be made simpler and easier for people.

• Same tax slabs to continue with no new changes in direct & indirect taxes.

• No tax liability for citizens with up to ₹7 Lakhs income.

 

11:52 AM: FY25 net market borrowing for dated securities set to ₹11.75 Lakh Crores. GST collection for this year so far stands at 1.66 Lakh Crores per month. FY25 Tax Receipts pegged at ₹26.02 Lakh Crores. FY25 Capex outlay at 3.4% of GDP. 

 

11:50 AM: Corporate tax drops from 30% to 22% for domestic companies and to 15% for certain new manufacturing companies. Gross borrowing stands at ₹14 Lakh Crores. Taxpayers appreciated for their support: FM

 

11:48 AM:

• For FY24, Revised Estimates of the total expenditure amounts to ₹44.90 Lakh Crores.

• Fiscal deficit to be 5.8% of GDP. Revised estimates of receipts (other than borrowings) to reach ₹27.56 Lakh Crores Of these, tax receipts are ₹23.24 Lakh Crores. 

 

11:47 AM: 

• Government will present a roadmap for Viksit Bharat in the Full Budget in July, FM reveals.  

• ₹75,000 Crore interest-free loans at 50-year to be given to states by Centre to support milestone-linked reforms. “For our tech-savvy youth, this will be a golden era”, adds FM Sitaraman. 

 

11:46 AM: New definition of FDI = First Develop India; bilateral treaties are being signed with multiple countries to encourage sustained foreign investment. 

 

11:45 AM: Govt. focusing on port connectivity; expansion of 100-tonne coal gasification & liquefaction capacity announced, will be set up by 2030. 

 

11:43 AM: Comprehensive development of tourism sectors under the G20 Presidency, presenting India’s diversity. Sector to aid in employment.

 

11:42 AM: Focus on metro rail expansion in large cities. Strengthen e-vehicle ecosystem, bio-manufacturing is the focus to push green growth, says FM. 

 

11:41 AM:

• Expansion of airports - airports doubled in number to 149.

• 570 new routes set up to support 1.3 crore passengers.

• Tech to be developed for defence.

• Indian air carriers placed orders for over 1,000 new aircrafts.

• Roll out of air connectivity to tier-two and tier-three cities under the UDAN scheme has been widespread, the Finance Minister adds.

 

11:39 AM:

• 3 major commodity-specific economic rail corridors to be developed: Energy, mineral and cement corridors, port connectivity corridors, and high traffic density corridors. 

• 49,000 railway bogies to be converted & thrust on Vande Bharat trains. 

 

11:38 AM: 8.3 million Self-help Groups transforming rural areas with empowerment and self-reliance, assisting almost 1 crore women to achieve financial success — target increased from 2 crore to 3 crores. 

 

11:36 AM: Fisheries to double exports to ₹1 Lakh Crores under PM Matsya Sampada Yojana. Aquaculture productivity to be enhanced from 3 tonnes to 5 tonnes per hectare. 

 

11:34 AM: Atmanirbhar Oilseed Bharat Abhiyan initiated. Seafood exports doubled since 2014. 55 Lakhs new jobs to come up in fisheries. 

 

11:32 AM: Comprehensive development for dairy farmers. Implementation of PM Matsya Sampada Yojana has been stepped up to benefit fisheries. 5 integrated aqua parks will also be set up. 

 

11:30 AM: Application of NANO-DAP will be expanded. New U-WIN Portal designed to document all immunisation and vaccination programmes in India. 

 

11:28 AM:

• Cervical cancer vaccines to be provided.

• Healthcare cover under the Ayushman Bharat scheme will be extended to all ASHA and Anganwadi Workers.

• Plan to set up more medical colleges.

• Maternity and childcare also remain areas of focus.

 

11:27 AM:

• Housing for the middle class - people living in rented houses/slums/chawls, will be able to buy or build their own houses, says PM Modi.

• 2 crore more houses to come up in next 5 years under Rural Plan.

 

11:26 AM: PM Awas Yojana to give 3 crore houses in India. Rooftop solarisation to help 1 crore homes. Energy and accessibility to improve. 

 

11:24 AM: MSMEs to grow & compete globally, orient to the regulatory environment. Aspirational districts programme - Govt to focus on the development of Eastern India, making it a powerful driver of India’s growth. 

 

11:22 AM: Middle-east corridor to become a game-changer for India. G20 Presidency amidst high inflation. The next 5 years will be of development. 

 

11:21 AM: GST-Boosted Tax-based growth in India. Mission of Viskit Bharat with Modern Infra, says FM. IFSCA creating a Global Gateway. 

 

11:15 AM: Average income of people increased by 50%, inflation is moderate, says FM. The government followed ‘citizen-first’ and ‘minimum government, maximum governance’ approaches. 

 

11:11 AM: Women’s Quota Bill Passed, Triple Talakh illegal, reservation for women in LS and State assemblies. GDP has a new definition in context to FM Sitaraman’s speech in the Election Year Budget - Governance, Development, Performance. 

 

11:08 AM:

• 11.8 Crore farmers benefit under PM Kisan Yojana.

• Crop insurance is given to 4 crore farmers under PM Fasal Bima Yojana.

• PM Mudra Yojana sanctioned 43 Crore Mudra Loans.

• 30 Crore PM Mudra Yojana loans given to women entrepreneurs.

• Women empowerment remains in focus.

 

11:06 AM:PM-Jan Dhan accounts used for the ‘Direct Benefit Transfer’ of ₹34 Lakh Crores from the government, leading to savings of ₹2.7 Lakh Crores. 

 

11:05 AM: India needs to focus on the needs and aspirations of 4 major castes – Garib (Poor), Mahilayen (Women), Yuva (Youth), Annadata (Farmer). The country will progress as these 4 groups progress, says FM. 

 

11:03 AM: India to achieve the status of ‘Viksit Bharat’ by 2047, says FM Nirmala Sitharaman, as she commenced her 6th Budget presentation on 1st February 2024.

Finance Minister Nirmala Sitharaman is gearing up to present her sixth consecutive budget on 1st February 2024. It will be an interim budget due to the impending general elections. This type of budget ensures continuity in spending without introducing major policy changes until the new government takes office. Despite its interim nature, the budget is expected to include measures aimed at pleasing voters, such as tax relief to aid in consumer spending.

Here are some of the key highlights that the Interim Budget may address:

• Fiscal Prudence in Focus: Addressing the Deficit Challenge

Although interim budgets typically focus on essential expenses without major policy announcements, this one is anticipated to address certain key issues. Fiscal prudence remains important, with efforts to reduce the fiscal deficit in line with post-pandemic consolidation goals.

• Anticipated Adjustments to the Tax Structure

Tax changes are expected, including targeted relief for taxpayers under the old regime and potential incentives for consumer spending. 

• Home Loan Dynamics

The housing sector anticipates revisions to home loan interest deductions to promote home ownership and real estate growth. 

• Increased Budget for Subsidies

Substantial allocations for food and fertilizer subsidies reflect welfare priorities ahead of the elections.

• Balancing Growth and Fiscal Goals

Despite the need for economic stimulus, spending growth is likely to be limited to align with revenue trajectories. 

• Investment Incentives for MSMEs

The budget may also introduce measures to incentivize investments, particularly for retail investors and MSMEs. 

• GST Revisions

Changes in the GST regime are expected to focus on simplification and compliance improvements.

Overall, the interim budget signals a commitment to responsible spending and long-term economic stability, balancing fiscal consolidation with measures to stimulate growth and ease the tax burden. The full budget will reveal the comprehensive plan for India's economic trajectory.