Important Highlights of the Union Budget 2024-25

Finance Minister Nirmala Sitharaman announced the 2024-25 Union Budget in parliament mainly focused on the poor, middle class, women, youth, and farmers. An interesting part of this budget is Finance Minister Nirmala Sitharaman presented her seventh consecutive Union Budget, surpassing Morarji Desai’s record of presenting six consecutive budgets. 

The key highlights of the budget are the increased spending, Employment creation initiatives, and relief in tax for the middle class. Significant changes in taxation include an increase in securities transaction tax, reduced capital gains tax in short term and long term and elimination the angel tax. 

Sitharaman budget presentation is a milestone, cementing her position as the first finance minister to set this milestone.

The Finance Minister presented the budget with a focus on creating opportunities for all. The budget was made to achieve a fiscal deficit of 4.5% in FY25 with a new Tax structure. 

Key Highlights of the Union Budget 2024-25

• Agriculture: Union Budget 2024-25 focused on a comprehensive review of agriculture research, the national cooperation policy, and focused on natural farming and export financing.

• Employment and skilling: Introduced 5 Schemes for 4.1 crore youth, internship schemes employment incentives and women skilling programmes.

• MSME and Manufacturing: Support the MSMEs, credit guarantee scheme, technology guidance package and SIDBI branches.

• Financial Initiatives: The Mudra loan limit increased, financial guidance was provided for higher education loans and rental housing was made available under PPP mode.

• Infrastructure and Regional Development: Introduced special financial guidance for Andhra Pradesh, with new medical facilities and giving special funds to Bihar for Road Projects, and power projects with medical College’s facilities.

• Economic Outlook: With the target of inflation of 4%, focus on jobs, and boosting consumption.

• Social Welfare: Expansion of PMGKAY, allocated the schemes for the benefit of women and girls.

• Budget Estimates: Receipts estimated at Rs. 32.07 lakh crore, total expenditure Rs. 48.21 lakh crore, with a fiscal deficit of 4.9% of GDP.

• Capital Gains Tax: 20% short-term capital gains tax was revised, on financial assets long-term capital gain tax was increased to 12.5% and 0.02% STT was raised on derivatives.

New Tax Rate Structure Introduced in 2024- 25 Budget 

Tax structure revised in the new Income Tax Regime:

• Rs. 0- 3 lakh- NIL

• Rs. 3-7 lakh – 5%

• Rs. 7-10 lakh- 10% 

• Rs. 10-12 lakh- 15%

• Rs. 12-15 lakh- 20%

• More than Rs. 15 lakh- 30%

• The standard deduction amount was raised to 75,000

So, overall, the focus of the budget is on employment, new skilling, agriculture, MSMEs, new infrastructure and finally social Welfare with the aims of boosting economic growth and new jobs.

Author:

Akansha Upadhyay

B.A.LL.B 4th year student of Banasthali Vidyapith, Rajasthan