Union Budget 2024: Prioritizing Growth and Inclusion

Union Budget 2024: A Blueprint for Inclusive Growth

The Union Budget 2024 marks a significant step in India's journey towards inclusive growth and economic resilience. With a focus on job creation, infrastructure development, support for MSMEs, and affordable housing, the Budget addresses critical national needs while reducing the fiscal deficit to 4.9%.

Key Initiatives:

Job Creation:

• Manufacturing Sector:
  • EPFO contribution incentives for both employees and employers for the first four years of employment.
  • Government reimbursement of up to ₹3,000 per month for two years for each additional employee’s EPFO contributions.
  • Aim to create employment opportunities for 5 million additional people.
• Direct Benefit Transfer (DBT) Scheme:
  • ₹15,000 to new workers registered with EPFO, disbursed in three instalments.
  • Benefits 210 lakh youth, with eligibility for salaries up to ₹1 lakh per month.
  • Emphasis on employment-linked skilling schemes.

Support for MSMEs:

• New Credit Guarantee Scheme:
  • Term loans for purchasing machinery and equipment without collateral.

Infrastructure Development:

• PM Awas Yojana Urban 2.0:
  • ₹10 lakh crore allocation for urban housing needs.
  • Additional ₹2.2 lakh crore initiative for affordable housing.

Energy Security and Sustainable Development:

• Removal of Angel Tax:
  • Boosts start-up morale and encourages innovation.

Tax Reforms:

• Simplification of Rules and Recognition for FDIs:
  • Facilitates inflow and promotes the use of the Rupee for overseas investments.
• Tax Law Operations Reforms:
  • Simplifies the process for taxpayers and rationalizes tax rates.

Fiscal Measures:

• Capital Gains Taxes:
  • Long-term and short-term capital gains taxes increased to 12.5% and 20%, respectively.
• Securities Transaction Tax (STT):
  • Modest rise in STT on Futures and Options (F&Os).

Overall Impact:

The Budget ensures balanced and inclusive development, steering India towards economic resilience and equitable growth.