INVC NEWS
New Delhi : Explore the key highlights of Union Budget 2024 presented by Finance Minister Nirmala Sitharaman, including significant financial support for Bihar and Andhra Pradesh, tax relief for salaried individuals, and special schemes for infrastructure development.
Introduction
The much-anticipated Union Budget 2024 was presented by Finance Minister Nirmala Sitharaman on Tuesday, July 23rd. In her seventh consecutive budget speech, spanning 1 hour and 23 minutes, Sitharaman unveiled a series of measures aimed at boosting the economy, providing relief to the salaried class, and supporting infrastructure development across various states, with a special focus on Bihar and Andhra Pradesh.
Key Takeaways from the Budget
Relief for the Salaried Class
In a significant move, the Finance Minister announced tax relief for those opting for the new tax regime. Income up to ₹7.75 lakh is now tax-free, offering a benefit of ₹17,500. This change is expected to provide much-needed financial relief to many middle-class families.
Major Financial Support for Bihar and Andhra Pradesh
Bihar is set to receive ₹58,900 crore, while Andhra Pradesh will get ₹15,000 crore. This substantial allocation underscores the government’s commitment to the development of these states.
Special Infrastructure Development Schemes
Infrastructure development is a key focus in this year’s budget, with special schemes announced for Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. These initiatives aim to boost connectivity and economic growth in these regions.
What’s Becoming Cheaper?
Several items will become more affordable due to reduced customs duties, including:
- Cancer medicines
- Gold and silver
- Mobile phones and chargers
- Electrical wires
- X-ray machines
- Solar sets
- Leather and seafood
Tax Benefits for Salaried Individuals
- New tax regime: Income up to ₹7.75 lakh tax-free, benefiting individuals by ₹17,500.
- Family pension tax exemption increased from ₹15,000 to ₹25,000.
First-Time Job Seekers
Individuals earning less than ₹1 lakh and registering with EPFO for the first time will receive ₹15,000 in three installments to support their transition into the workforce.
Educational Loans
Students who do not benefit from existing government schemes can avail loans for admissions across the country, with the government covering up to 3% of the interest. E-vouchers will be introduced, benefiting 100,000 students annually.
Major Announcements for Bihar and Andhra Pradesh
Bihar
Bihar has received a significant boost with an allocation of ₹58,900 crore. Key projects include:
- ₹26,000 crore for various road projects.
- Expressways connecting Patna-Purnia, Buxar-Bhagalpur, Bodh Gaya-Rajgir-Vaishali-Darbhanga.
- A ₹21,400 crore power project in Pirpainti.
- ₹11,500 crore for flood relief and mitigation.
Additionally, the development of tourism corridors, such as the Vishnupad Temple Corridor and Mahabodhi Temple Corridor, and the promotion of Nalanda University as a tourist hub, have been announced.
Andhra Pradesh
Andhra Pradesh will benefit from an allocation of ₹15,000 crore. The budget also includes special infrastructure development schemes for Andhra Pradesh, focusing on enhancing connectivity and boosting economic growth in the region.
Support for Farmers
- Land registry information for 60 million farmers.
- Issuance of new Kisan Credit Cards in five states.
Youth Initiatives
- Increase in Mudra loan amount from ₹10 lakh to ₹20 lakh.
- Internship programs for 1 crore youths in 500 top companies, with a monthly stipend of ₹5,000 and a one-time assistance of ₹6,000.
Support for Women and Girls
- ₹3 lakh crore allocated for schemes benefiting women and girls.
Solar Power Initiatives
Under the Suryaghar Free Electricity Scheme, 1 crore households will receive up to 300 units of free electricity per month.
Detailed Analysis
Relief Measures for the Salaried Class
The announcement that income up to ₹7.75 lakh is tax-free under the new regime is a significant relief for the salaried class. This change simplifies the tax structure and offers more disposable income, which can help stimulate consumer spending and economic growth.
Focus on Infrastructure
The infrastructure push, particularly in Bihar and Andhra Pradesh, is expected to have a ripple effect on the economy. Improved connectivity through expressways and road projects will enhance trade, reduce travel time, and boost tourism. The new power projects will address electricity shortages and support industrial growth.
Education and Employment
The focus on educational loans and first-time job seekers highlights the government’s commitment to empowering the youth. By reducing the financial burden on students and providing support to new entrants in the workforce, these measures aim to create a more skilled and productive workforce.
Support for Women and Farmers
The significant allocation for women-centric schemes underscores the government’s focus on gender equality and empowerment. Similarly, the support for farmers through land registry information and new credit cards aims to enhance agricultural productivity and rural incomes.
Health and Solar Power
Reducing the cost of cancer medicines and introducing solar power initiatives are commendable steps towards improving public health and promoting sustainable energy.
FAQs
What are the major tax changes in the Union Budget 2024?
The new tax regime now offers tax-free income up to ₹7.75 lakh. The family pension tax exemption has increased from ₹15,000 to ₹25,000.
How will Bihar and Andhra Pradesh benefit from the budget?
Bihar will receive ₹58,900 crore for various infrastructure projects, including roads, power, and flood relief. Andhra Pradesh will get ₹15,000 crore for similar development initiatives.
What support is provided for first-time job seekers?
Individuals earning less than ₹1 lakh and registering with EPFO for the first time will receive ₹15,000 in three installments.
How does the budget support education?
Students who do not benefit from existing schemes can avail loans for admissions, with the government covering up to 3% interest. E-vouchers will be introduced for 100,000 students annually.
What are the initiatives for women in the budget?
₹3 lakh crore has been allocated for schemes benefiting women and girls.
What are the key infrastructure projects announced for Bihar?
Key projects include expressways connecting Patna-Purnia, Buxar-Bhagalpur, Bodh Gaya-Rajgir-Vaishali-Darbhanga, and a power project in Pirpainti.
How does the budget support farmers?
The government will bring land registry information for 60 million farmers and issue new Kisan Credit Cards in five states.
Conclusion
The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, showcases a balanced approach aimed at economic growth, infrastructure development, and social welfare. With significant allocations for Bihar and Andhra Pradesh, tax relief for the salaried class, and numerous initiatives for youth, women, and farmers, the budget addresses diverse needs and sets the stage for a more prosperous future. As these measures are implemented, their impact on the economy and society will become clearer, paving the way for continued progress and development.
