The Union Budget 2024-25: Key Announcements and Insights
The Indian Union Budget 2024-25 marked a significant episode in the nation's economic progress, introducing a plethora of new initiatives and reforms aimed at fostering growth and development. Here, we delve into the major announcements and their implications.
Agricultural Sector
The budget promised a robust transformation in the agricultural sector, with a comprehensive review of the agriculture research setup to enhance productivity and develop climate-resilient crop varieties. New 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops will be introduced to benefit farmers.
Employment and Skilling
One of the most eye-catching announcements was the One-month wage initiative, offering new entrants in formal sectors 15,000 in three instalments. Expected to benefit 210 lakh youth, this initiative aligns with the government's goal of generating 50 lakh jobs over two years. A significant development is the reimbursement of EPFO contributions by employers for up to 3000 per month, further encouraging job creation.
Infrastructure
A substantial allocation of 1111111 crore (Rs. 11.111 trillion) for infrastructure development, accounting for 3.4% of the GDP, was announced. This includes 1.5 lakh crore (Rs. 150,000 crore) in long-term interest-free loans to states to support resource allocation. Additionally, Phase IV of the Pradhan Mantri Gram Sadak Yojana (PMGSY) will be launched, providing all-weather connectivity to 25,000 rural habitations.
Taxation Reforms
The taxation landscape saw significant reforms with the revision of tax slabs and deductions. The standard deduction was raised from 50,000 to 75,000, aiming to benefit taxpayers across the board. The changes also included the removal of certain tax deductions, such as the exemption on home loan interest for self-occupied properties. Under the new regime, only the interest on home loans for let out properties can be claimed, limited to the rental income received.
Challenges Ahead
While the Union Budget 2024-25 introduced several innovative measures, it also highlighted the financial challenges faced by the government, with revenues reaching a saturated point and lower-than-expected revenue figures. This necessitates a renewed focus on transparency, efficiency, and effectiveness in public spending. The finance minister emphasized the importance of addressing these challenges while promoting a more equitable and inclusive economic model.
Conclusion
The Union Budget 2024-25 reflects the government's commitment to fostering sustainable growth through a combination of new policies, infrastructure development, and tax reforms. As we look ahead, the focus will be on implementation and ensuring that these initiatives benefit the broader population.