Union Budget 2024 - A Roadmap to Sustainable Growth
The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, is a strategic financial plan aimed at fostering sustainable growth and addressing key economic priorities. This budget arrives at a crucial time as the government aims to balance economic development with fiscal prudence ahead of the general elections.
Key Highlights and Allocations
1. Fiscal Consolidation and Economic Growth:
The budget emphasizes fiscal consolidation with a target to reduce the fiscal deficit to 5.1% of GDP for FY25, down from 5.8% in FY24. This reduction is part of a broader strategy to achieve a fiscal deficit of 4.5% by FY26. To support economic growth, the capital expenditure is increased by 11%, amounting to ₹11.11 lakh crore.
2. Infrastructure Development:
A significant focus is placed on infrastructure development, with substantial investments in railways, airports, and urban connectivity. The budget includes converting 40,000 rail bogies to Vande Bharat coaches and expanding key rail corridors to enhance safety and efficiency.
3. Aviation Sector Boost:
India's aviation sector receives a major boost with plans to revive 22 airports, introduce 124 new air routes, and develop the Minicoy airport for both military and commercial use. The UDAN scheme continues to enhance regional connectivity, benefiting Tier 2 and Tier 3 cities.
4. Taxation:
The income tax structure remains unchanged, maintaining stability for taxpayers. The focus is on improving tax collection efficiency, which has seen a significant improvement over the last decade. The average processing time for tax returns has been reduced to 10 days, reflecting better administrative efficiency. The total tax collection for the fiscal year is projected to be ₹30.43 lakh crore, contributing significantly to the nation's revenue.
| Income Range (Rs) | New Tax Rate (%) | Old Income Range (Rs) | Old Tax Rate (%) |
|---|---|---|---|
| 0 to 3 lakh | Nil | 0 to 3 lakh | Nil |
| 3 to 7 lakh | 5% | 3 to 6 lakh | 5% |
| 7 to 10 lakh | 10% | 6 to 9 lakh | 10% |
| 10 to 12 lakh | 15% | 9 to 12 lakh | 15% |
| 12 to 15 lakh | 20% | 12 to 15 lakh | 20% |
| More than 15 lakh | 30% | More than 15 lakh | 30% |
5. Social Welfare and Inclusion:
The 'Lakhpati Didi' scheme targets enhancing the financial status of rural women, with a goal to empower 3 crore women through self-help groups. This initiative aims to boost rural socio-economic development and enhance self-reliance among women.
6. Green Energy and Sustainability:
The budget continues to support green energy initiatives, promoting sustainable practices and investments in renewable energy sectors. This aligns with India's long-term goals of reducing carbon emissions and fostering a sustainable environment.
Conclusion
Union Budget 2024 lays a robust foundation for India's economic trajectory, balancing development with fiscal responsibility. With its emphasis on infrastructure, social welfare, and sustainable growth, the budget seeks to propel India towards its Vision 2047, aiming to make the country a developed nation by its 100th year of independence. The strategic allocations and initiatives reflect the government's commitment to holistic and inclusive growth, ensuring benefits reach all sections of society.
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