Finance Minister Nirmala Sitharaman presented the Union Budget 2024 in Parliament on Tuesday, outlining the government’s vision for the upcoming fiscal year. The budget emphasized nine key priorities: productivity, jobs, social justice, urban development, energy security, infrastructure, and reforms. The overarching policy goal is to accelerate the growth of the rural economy and enhance employment opportunities. Here are the main highlights of the budget speech:

Economic and Infrastructure Development

1. Capital Expenditure Allocation: The government has allocated ₹11 lakh crore for capital expenditure on infrastructure development, which is 3.4% of the GDP. This move aims to stimulate private investment in infrastructure through viability gap funding and enabling policies.
2. Digital Public Infrastructure: To boost productivity and innovation, the government proposes developing digital public infrastructure applications, fostering business opportunities and private sector innovation.
3. Debt Recovery Tribunals: Additional debt recovery tribunals will be established to expedite financial dispute resolutions, improving the efficiency of the financial system.
4. Critical Mineral Mission: A mission to acquire critical mineral assets overseas will be launched, ensuring a stable supply of essential minerals for various industries.
5. Offshore Mining Blocks: The government will commence the auction of the first offshore mining blocks, opening new avenues for resource extraction and economic growth.
6. Rental Housing for Industrial Workers: Dormitory-type rental housing will be facilitated for industrial workers through Public-Private Partnership (PPP) mode, addressing housing needs and improving living conditions.

Social and Employment Initiatives

1. Employment Opportunities: The government will provide incentives to 30 lakh youth entering the job market by offering one month’s Provident Fund (PF) contribution. Additionally, a scheme to provide internship opportunities to 1 crore youth in 500 top companies will be launched, offering a monthly allowance of ₹5000 and a one-time assistance of ₹6000.
2. Working Women Hostels: New hostels for working women will be established, providing safe and affordable accommodation for women in the workforce.
3. Upgradation of ITIs: 1,000 Industrial Training Institutes (ITIs) will be upgraded using the hub and spoke model, enhancing vocational education and skill development.
4. Higher Education Loans: Financial support will be provided for loans up to ₹10 lakh for higher education in domestic institutions, making education more accessible.
5. Credit Guarantee Scheme for MSMEs: A new credit guarantee scheme will be introduced to facilitate term loans for Micro, Small, and Medium Enterprises (MSMEs). This scheme aims to reduce credit risks and provide up to ₹100 crore in cover for each applicant.

Tax Reforms and Customs Duty Adjustments

1. Income Tax Reforms: For those opting for the new tax regime, the standard deduction for salaried employees will increase from ₹50,000 to ₹75,000. The revised tax slabs are as follows:
   • • ₹0-3 lakh: Nil
     • ₹3-7 lakh: 5%
     • ₹7-10 lakh: 10%
     • ₹10-12 lakh: 15%
     • ₹12-15 lakh: 20%
     • Above ₹15 lakh: 30%

These changes will result in annual tax savings of up to ₹17,500 for salaried employees under the new regime.

2. Customs Duty Reductions: Basic customs duty on mobile phones and chargers will be reduced to 15%. Additionally, customs duty on gold and silver will be decreased to 6%, and on platinum to 6.4%.

Miscellaneous Announcements

1. Global Economic Context: The Finance Minister acknowledged the ongoing global economic uncertainty but emphasized that India’s inflation remains stable and is moving towards the 4% target.
2. Reaffirmation of Government’s Mandate: Sitharaman highlighted the people’s reinforced faith in the Modi-led government, re-elected for a third term, which continues to strive for economic stability and growth.

The Union Budget 2024 aims to foster economic growth, enhance infrastructure, provide social justice, and create job opportunities while maintaining fiscal discipline. These measures are expected to drive India towards a more prosperous and equitable future.