Union Budget Breakdown You Can’t Miss

“You might have missed yesterday's Nirmala Sitharaman speech or today’s newspaper updates, and maybe you haven’t had a chance to catch up on the Union Budget posts. But don’t let this summary pass you by! I’ve simplified the entire budget into an easy-to-understand format, so you can quickly get up to speed. Check it out to stay informed!”

1. Income Tax Changes: More Savings for the Middle Class

Budget 2023-24:

• Standard deduction of ₹50,000.

• Traditional income tax slabs.

Budget 2024-25:

• Standard deduction increased to ₹75,000.

• New tax slabs introduced:

  • 0-3 Lakh: Nil

  • 3-7 Lakh: 5%

  • 7-10 Lakh: 10%

  • 10-12 Lakh: 15%

  • 12-15 Lakh: 20%

  • Above 15 Lakh: 30%

Impact: Increased standard deduction and new tax slabs mean more savings for middle-class families. This extra cash can be used for savings, investments, or shopping sprees.

2. Capital Gains Tax Simplified

Budget 2023-24:

• Capital gains tax varied based on asset type.

Budget 2024-25:

• Short-term gains: 20% on all financial assets.

• Long-term gains: 12.5% on all assets, with a ₹1.25 lakh profit exemption.

Impact: “Kya baat hai, tax ka jhanjhat kam!” Simplified capital gains tax makes it easier to understand tax liabilities. The exemption on long-term gains is a win for long-term investors.

Potential Negative Impact: “Short-term traders ko sochna padega!” Short-term traders might have to rethink their strategies due to higher short-term tax rates, which could impact their overall profits.

3. Angel Tax Abolished: Boost for Startups

Budget 2023-24:

• Angel tax applied to certain investors.

Budget 2024-25:

• Angel tax abolished for all investors.

Impact: “Startups ke liye good news!” Abolishing the angel tax will make it easier for startups to attract investment, leading to more innovation and jobs.

Potential Negative Impact: “Tax evasion ka dar!” The government must ensure that this doesn’t lead to tax evasion through inflated valuations, which could reduce overall tax revenue.

4. Big Boost in Capital Expenditure

Budget 2023-24:

• Capital expenditure: ₹7.5 lakh crore.

Budget 2024-25:

• Capital expenditure: ₹11.1 lakh crore.

Impact: “Desh mein nayi sadkein aur pul banenge!” More money for infrastructure projects like roads, bridges, and railways means job creation and better quality of life.

Potential Negative Impact: “Implementation ka issue!” Effective implementation and monitoring are crucial to prevent wastage and corruption. Without this, funds might not reach the intended projects.

5. Focus on Employment and Skilling

Budget 2023-24:

• Basic schemes for youth employment.

Budget 2024-25:

• ₹2 lakh crore for youth and skill development over 5 years.

• New employment schemes and initiatives.

Impact: “Naye naukri aur skill training opportunities!” Investing in youth and skill development can reduce unemployment and prepare the workforce for future challenges.

Potential Negative Impact: “Execution zaruri hai!” Proper execution and reach are essential for these schemes to succeed. Without it, the intended benefits may not be realized.

6. Support for Women and Social Welfare

Budget 2023-24:

• Basic support for women and child development.

Budget 2024-25:

• ₹3 lakh crore allocated for women and girls’ welfare.

• New hostels for working women and increased support for women entrepreneurs.

Impact: “Mahilayein hogi aur mazboot!” Enhanced support for women promotes gender equality and economic empowerment.

Potential Negative Impact: “Proper distribution chahiye!” Effective delivery of these benefits is key. If not properly distributed, the funds might not reach those who need them the most.

7. Agriculture and Rural Development: A Priority

Budget 2023-24:

• Regular funding for agriculture.

Budget 2024-25:

• ₹1.52 lakh crore for agriculture.

• New schemes for natural farming and climate-resilient seeds.

Impact: “Kisano ke liye acchi khabar!” More investment in agriculture can increase productivity and farmer income.

Potential Negative Impact: “Training ki zarurat!” Training and education for farmers are essential. Without it, the new techniques might not be adopted effectively.

8. Infrastructure and Urban Development: Major Investments

Budget 2023-24:

• Standard funding for infrastructure projects.

Budget 2024-25:

• ₹11.1 lakh crore for infrastructure projects.

• Development of industrial corridors and urban development plans.

Impact: “Nayi sadkein aur sheher sudhrenge!” Improved infrastructure attracts businesses and investments, leading to economic growth.

Potential Negative Impact: “Time par project complete ho!” Timely and corruption-free implementation is crucial. Delays and corruption can derail the benefits of these projects.

9. Technology and Innovation: Future-Ready Initiatives

Budget 2023-24:

• Basic funding for technology and innovation.

Budget 2024-25:

• ₹1 lakh crore for research and innovation.

• New venture capital fund for the space economy.

• Digitalization initiatives.

Impact: “Desh banega tech-savvy!” Investing in technology and innovation positions India as a global leader.

Potential Negative Impact: “Continuous support chahiye!” Continuous support and favorable policies are needed to maintain momentum in technological advancements.

10. MSMEs and Startups: Enhanced Support

Budget 2023-24:

• Basic support schemes for MSMEs.

Budget 2024-25:

• Credit guarantee scheme for MSMEs.

• Increased loan limits for Mudra loans.

• New incentives for startups and small businesses.

Impact: “Chhoti businesses ka hoga vikas!” MSMEs are the backbone of the economy. Enhanced support can help them grow and create jobs.

Potential Negative Impact: “Accessibility zaruri hai!” Ensuring benefits are easily accessible is key. If not, small businesses might still struggle to get the support they need.

11. Custom Duty Changes: What’s New?

Electronics:

• Old Duty: 10%

• New Duty: Reduced to 7.5%

Luxury Items:

• Old Duty: 15%

• New Duty: Increased to 20%

Essential Medicines:

• Old Duty: 10%

• New Duty: Reduced to 5%

Impact:

• Electronics: Good News: Lower prices for gadgets; Concern: Increased competition for local manufacturers.

• Luxury Items: Negative: Higher costs for luxury goods; Concern: Potential decrease in luxury market sales.

• Medicines: Good News: Cheaper medicines; Concern: Pressure on domestic pharmaceutical companies.

Special Focus on Andhra Pradesh and Bihar

Andhra Pradesh:

• Budget 2024-25 Initiatives:

  • Special allocation for coastal infrastructure development.

  • Boost for IT and electronics manufacturing hubs in Visakhapatnam.

  • Enhanced funding for agricultural research and aquaculture.

Impact: “Andhra Pradesh ka coastal infrastructure sudhrega!” Better coastal infrastructure can boost trade and tourism. Investment in IT and electronics can create jobs and attract global companies. Agricultural research can benefit local farmers.

Potential Negative Impact: “Execution aur monitoring zaruri!” Effective execution and continuous monitoring are crucial to ensure the benefits reach the intended sectors.

Bihar:

• Budget 2024-25 Initiatives:

  • Special package for flood management and disaster resilience.

  • Enhanced funding for educational infrastructure.

  • New skill development centers in rural areas.

Impact: “Bihar ke liye khaas package!” Improved flood management can save lives and property. Better educational infrastructure can increase literacy and skill levels. New skill development centers can reduce unemployment and uplift rural areas.

Potential Negative Impact: “Funds sahi jagah use honi chahiye!” Proper utilization of funds is crucial. Without it, the initiatives might not yield the expected results.

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Conclusion

The Budget 2024-25 introduces several positive changes and new initiatives that can significantly impact the economy and our daily lives. From tax reforms to infrastructure investments and support for women, youth, and MSMEs, the budget aims to promote inclusive growth. However, the success of these measures depends on effective implementation and continuous monitoring.