Union Budget 2024
Costlier and Cheaper Items:
The Union Budget 2024 has introduced changes to the cost of various goods. Certain items are set to become costlier, including telecom equipment, ammonium nitrate, non-biodegradable plastics, and footwear. On the other hand, some items will see reduced prices. Mobile phones, gold, silver, platinum, cancer drugs, seafood, minerals, and solar energy parts will be cheaper. These adjustments aim to balance consumer costs and support key industries.
Focus on Youth and Jobs:
The government has allocated ₹1.48 lakh crore for education, employment, and skill development. This initiative aims to benefit 4.1 crore youth and create numerous job opportunities. As part of this effort, 30 lakh new job entrants will receive a month’s provident fund (PF) contribution as an incentive. Additionally, loans of up to ₹10 lakh will be available at 3% interest for higher education at Indian institutions. To further support women in the workforce, the government will establish new hostels for working women.
Infrastructure Developments:
A significant focus has been placed on infrastructure with a ₹2.66 lakh crore allocation for rural development. This includes a major investment of ₹21,400 crore in a 2400 MW power plant in Pirpainti, Bihar. The budget also provides ₹2.2 lakh crore in central assistance for urban housing projects and ₹1.5 lakh crore in long-term interest-free loans to help states develop their infrastructure. The ‘Poorvodaya’ initiative will drive comprehensive development in Eastern India, covering Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.
Support for Businesses and Startups:
The budget has introduced measures to support businesses and startups. The angel tax has been abolished for all investor categories, and startups established between April 1, 2016, and March 31, 2025, will be recognized and incentivized, provided their turnover is under ₹100 crore. A new credit guarantee scheme will facilitate term loans for micro, small, and medium enterprises (MSMEs). Additionally, delays in tax deduction at source (TDS) have been decriminalized, and the penalty for e-commerce TDS delays has been reduced from 1% to 0.1%.
Investments in Bihar and Andhra Pradesh:
The budget outlines substantial investments for Bihar and Andhra Pradesh. Bihar will receive ₹26,000 crore for road projects, new airports, and sports infrastructure, along with an additional ₹11,500 crore for flood mitigation efforts. Andhra Pradesh will benefit from ₹15,000 crore in financial assistance aimed at developing Amaravati, the state’s new capital.
Miscellaneous Announcements:
Several other significant announcements were made in the budget. Customs duties have been reduced to 6% on gold and 6.5% on silver and platinum. Foreign direct investment (FDI) regulations are being simplified to attract more overseas investments. A ₹1 lakh crore financing pool has been set up to boost private sector-driven research and innovation. The agriculture sector will receive ₹1.52 lakh crore in funding, and a new rooftop solar scheme will provide free electricity to 1 crore households with solar panels.
These measures are designed to stimulate economic growth, support key sectors, and improve the quality of life for citizens across India.