Budget 2024: As India gears up for Union Finance Minister Nirmala Sitharaman‘s presentation of the interim budget 2024 on February 1, let’s revisit five significant announcements from the previous year. Meanwhile, the upcoming budget is poised to set the stage for the full financial year 2024-25, with several key expectations on the horizon.
Major Announcements from Last Year
Income Tax Revisions:
- No changes to the old tax regime, but revised tax slabs under the new system.
- Basic exemption limit increased to ₹3 lakh.
- Tax rebate raised to ₹7 lakh.
- Standard deduction of ₹50,000 extended to the new regime.
Capex Hike:
- Capital investment outlay increased by 33% to ₹10 lakh crore.
- Overall capital investment outlay accounted for around 3.3% of the GDP.
Health and Education Allocations:
- ₹89,155 crore allocated to the health and education sector.
- Mission announced to eradicate Sickle Cell Anemia by 2047.
- Plans for 157 new nursing colleges.
PM Awas Yojana Boost:
Pradhan Mantri Awas Yojana (PMAY) allocation enhanced by 65% to ₹79,000 crore.
Agriculture Initiatives:
- Introduction of the Agriculture Accelerator Fund to encourage rural startups.
- Agriculture credit target increased to ₹20 lakh crore.
- New sub-scheme under PMMSY unveiled with ₹6,000 crore investment.
Anticipating Key Developments for Budget 2024-25:
Welfare Spending and Fiscal Deficit:
- Forecasts suggest increased welfare spending and a potential reduction in the fiscal deficit to 4.5% of GDP by 2025-26.
Tax Reduction and Rural Support:
- Hopes for tax reduction and support for farming and rural areas while emphasizing capex.
Infrastructure Focus:
- Anticipation of higher funds allocation for infrastructure, emphasizing digitization, green hydrogen, EVs, and broadband.
Food and Fertilizer Subsidies:
- Contemplating an allocation of around Rs 4 trillion ($48 billion) for food and fertilizer subsidies.
Affordable Housing Funding:
- Signals indicate a potential increase of over 15% in funding for affordable housing.
Divestment Goals:
- Government aims to raise Rs 510 billion ($6 billion) through divestment.
While these insights provide a glimpse into potential developments, it’s essential to note that the final budgetary decisions lie with the Finance Ministry. The forthcoming budget will unveil the concrete fiscal measures for the year ahead.
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