Union Budget 2024: Key Highlights of the Union Budget 2024-2025

On July 23, 2024, Union Finance Minister Nirmala Sitharaman delivered her seventh consecutive budget, marking the first presented by the BJP-led NDA government since its re-election in June. This budget emphasizes employment, skill development, support for Micro, Small, and Medium Enterprises (MSMEs), and relief for the middle class, with a substantial allocation of ₹1.48 lakh crore designated for education, employment, and skill development.

So, let us have an overview of the Union Budget 2024-25 in this article:

Key Priorities and Initiatives:

The Finance Minister outlined nine key priorities for the Budget:

Agricultural Productivity and Resilience:

Focused on enhancing productivity and promoting natural farming practices. Initiatives include achieving self-sufficiency in pulses and oilseeds and developing digital public infrastructure to support the sector.

Inclusive Human Resource Development and Social Justice:

Emphasis on fostering inclusive growth and addressing social justice concerns through various programs.

Support for MSMEs:

Introduction of new measures to bolster Micro, Small, and Medium Enterprises, including a revised credit assessment model based on digital footprints rather than just assets and turnover.

Innovation, Research, and Development:

Promoting research and development to drive innovation across sectors.

Employment and Education Initiatives:

The budget introduces three new employee-linked incentive schemes under the Prime Minister's package. These schemes will encourage first-time employment and provide support to both employers and employees through the Employee Provident Fund Organisation.

To enhance educational opportunities, the budget includes support loans up to ₹10 lakh for students who have not benefited from any government schemes. Additionally, e-vouchers will be provided to 1 lakh students annually, offering a 3% interest subvention on education loans. A significant initiative involves providing internships in 500 top companies to 1 crore youth over the next five years, giving them practical exposure in business environments for 12 months.

Infrastructure Development:

For Bihar, the government has launched the "Purvodaya" plan aimed at holistic development in eastern states, including Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. Under this plan, ₹26,000 crore will be invested in constructing expressways in Bihar, along with new power projects, airports, medical colleges, and sports infrastructure.

In Andhra Pradesh, funds will be allocated under the AP Reorganisation Act to enhance industrial development by improving essential infrastructure such as water, power, and roads.

Support for Women:

A major allocation of over ₹3 lakh crore is designated for initiatives benefiting women and girls, reflecting the government's commitment to promoting women-led development and increasing opportunities for women across various sectors.

MSME Focus:

The Budget places a strong emphasis on MSMEs and labor-intensive manufacturing. A new assessment model for MSME credit will be introduced, focusing on the digital footprint of MSMEs rather than relying solely on traditional asset and turnover criteria.

Personal Income Tax Revisions:

The Finance Minister has revised the income tax slabs under the new regime, allowing salaried employees to save up to ₹17,500 in taxes. Although the tax rates remain unchanged, the slab sizes have been adjusted. The tax slab from ₹3 lakh to ₹6 lakh has been expanded to ₹3 lakh to ₹7 lakh, with a 5% tax rate maintained. Other slab adjustments include:

• ₹6-9 lakhs now expanded to ₹7-10 lakhs.
• ₹9-12 lakhs now expanded to ₹10-12 lakhs.
• Slabs beyond ₹12 lakhs remain unchanged.

This budget reflects a balanced approach toward economic growth, focusing on enhancing agricultural productivity, advancing human resource development, supporting MSMEs, and revising personal income tax regulations to benefit salaried employees.