Union Budget 2024: Key Highlights and Updates

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The Union Budget 2024, presented in July, outlines significant measures aimed at propelling India towards the vision of a "Viksit Bharat" or a developed India. This comprehensive blog explores the pivotal highlights and updates from the budget that impact various sectors and demographics. This guide is essential for understanding the economic strategies and initiatives set forth by the government for the financial year 2024-2025.


Budget Theme: Roadmap for ‘Viksit Bharat’

The overarching theme of the Union Budget 2024 is to establish a clear roadmap for achieving a developed India. The budget focuses on four key areas:

1. Women (Mahilayen)
2. Poor (Garib)
3. Youth (Yuva)
4. Farmers (Annadata)


Key Areas of Focus


1. Agriculture and Farmers' Welfare

- Vegetable Production & Supply Chain: 
Promotion of Farmer Producer Organizations (FPOs), cooperatives, and startups to enhance vegetable supply chains.

- Release of New Varieties: 
Introduction of 109 new high-yielding and climate-resilient varieties of 32 field and horticulture crops.

- National Cooperation Policy: 
Development of the cooperative sector to ensure systematic growth.

- Natural Farming: 
Initiation of 1 crore farmers into natural farming, supported by certification and branding.

- Shrimp Production & Export: 
Financing for shrimp farming, processing, and export through NABARD.



2. Employment and Skilling

- Women Workforce Participation: 
Setting up of working women hostels and creches to facilitate higher participation of women in the workforce.

- Wage Support: 
One-month wage to new entrants in all formal sectors, benefiting 210 lakh youth.

- Job Creation Schemes:
  - Scheme A: Incentives for EPFO contributions for first-time employees.
  - Scheme B: Job creation in manufacturing.
  - Scheme C: Government reimbursement of EPFO contributions for new hires.



3. MSMEs (Micro, Small, and Medium Enterprises)

- Credit Support: Enhanced credit guarantee scheme for MSMEs in the manufacturing sector.

- Mudra Loans: Increased limit under the ‘Tarun’ category from ₹10 lakh to ₹20 lakh.

- Stress Period Support: Credit support to MSMEs during stress periods.



4. Middle-Class Support

- Standard Deduction: Increased from Rs. 50,000 to Rs. 75,000 for salaried employees.

- Capital Gains Tax: New tax rates for financial and non-financial assets.



Infrastructure Development

- PMGSY Phase IV: All-weather connectivity to 25,000 rural habitations.

- Flood Mitigation: Financial support for projects in states like Assam, Sikkim, and Uttarakhand.

- Urban Development: Development of 100 weekly ‘haats’ or street food hubs in select cities.



Energy and Climate

- Clean Energy Initiatives: Financial support for micro and small industries to shift to cleaner forms of energy.

- Nuclear Energy: Establishment of Bharat Small Reactors and a joint venture between NTPC and BHEL for an 800 MW commercial plant.

- Energy Storage: Policies for electricity storage to integrate renewable energy sources.



Social Justice and Inclusion

- Pradhan Mantri Janjatiya Unnat Gram Abhiyan: Socio-economic upliftment of tribal communities.

- Allocation for Women and Girls : Over Rs. 3 lakh crore allocated for schemes benefiting women and girls.

- North East Region Development: Establishment of over 100 branches of India Post Payment Bank in the North East.



Tax Proposals

- Direct Tax Proposals: Simplification to reduce the compliance burden, promote entrepreneurial spirit, and provide tax relief.

- Customs Duty Changes: Reduction in duty for mobile phones, PCBA, chargers, and other essential items to boost domestic manufacturing and exports.


Conclusion

The Union Budget 2024 is a forward-looking budget that aims to address the needs of various sectors and demographics through targeted initiatives and financial support. By focusing on employment, skilling, MSMEs, and sustainable development, the budget sets the stage for India’s economic growth and development in the coming years.

Stay updated with the latest developments in the Union Budget 2024 and how it impacts different sectors by visiting our blog regularly. For expert advice and assistance with financial planning and tax compliance, contact Verotus LLP.


You Can Check the Budget in detail from link given below :
- [Government of India Budget Portal](https://www.indiabudget.gov.in/)
- [Ministry of Finance](https://www.finmin.nic.in/)


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