Union Budget – FY 2024-25

Blog Credit: Trupti Thakur

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Union Budget – FY 2024-25

Union Budget 2024-25 Key Highlights and Announcements: Finance Minister Nirmala Sitharaman confirmed the continuation of existing tax rates, covering direct, indirect taxes, and export duties. She also disclosed an 11% surge in the upcoming year’s capex outlay, reaching₹11.1 lakh crore. Sitharaman, during the fiscal year’s federal budget announcement, revised the fiscal gap to 5.8% of the gross domestic product. The Finance Minister also introduced a housing scheme for the deserving middle class, focusing on those living in rented houses, slums, chawls, or unauthorised colonies. Prime Minister Modi stated that this initiative would assist them in acquiring or constructing their own homes. Amid various announcements benefiting youth, the impoverished, women, and farmers, Sitharaman highlighted the extension of Ayushman Bharat healthcare coverage to all ASHA and Anganwadi workers and helpers.

Highlights of Interim Budget 2024-25

• There are no changes in direct, indirect tax rates.
• The government withdrew income tax demands up to Ru. 25000 (till 2009-10) government withdrew income tax demands up to Ru. 25000 (till 2009-10) and Ru. 10000 from 2010-11 to 2014-15. This will benefit about one crore taxpayers
• A scheme to help middle class living in rented houses to buy or build their own houses will be launched
• Tax benefits to start-ups and investments made by sovereign wealth or pension funds extended by 1 year till March 31, 2025.
• Capital expenditure hiked 11% to Ru. 11.11 lakh crore
• Fiscal deficit for FY25 projected at 5.1%, lower than the revised estimate (5.8%) in FY24
• Govt to borrow Ru. 14.13 lakh crore in next fiscal, lower than ₹15.43 lakh crore in FY24
• Nominal GDP growth for FY25 is projected at 10.5%
• Mop-up from central public sector enterprises (CPSEs) disinvestment pegged at ₹50,000 crore for FY25, up from ₹30,000 crore in FY24
• Gross tax revenue target for FY25 hiked 11.46% to ₹38.31-lakh crore, from ₹34.37 lakh crore in FY24
• Direct tax collection target set at ₹21.99-lakh crore, while that of indirect tax is at ₹16.22-lakh crore
• The government will release a white paper on mismanagement of economy prior to 2014
• Next generation reforms will be unveiled in consultation with States and stakeholders
• Govt to form high-powered panel to address population growth challenges and demographic changes

 

Blog By: Trupti Thakur