Deciphering Budget 2024: A Comprehensive Overview of Key Proposals
The recent unveiling of Budget 2024 by Finance Minister Nirmala Sitharaman has set the stage for a significant fiscal year. In this comprehensive overview, we delve into 15 key highlights that capture the essence of the budget and its potential impact across various sectors.
Tax Stability: No changes in income tax slabs or rates, coupled with the withdrawal of outstanding direct tax demands up to ₹25,000, providing relief to around one crore taxpayers.
Fiscal Discipline: A targeted fiscal deficit of 5.1% of GDP for FY25 reflects the government’s commitment to maintaining fiscal discipline, with lower gross and net market borrowings at ₹14.13 and ₹11.75 lakh crore, respectively.
Rail Infrastructure Boost: Sectoral development receives a boost with a capex target of ₹11.1 lakh crore for FY25, focusing on rail infrastructure projects such as the conversion of 40,000 rail bogies to Vande Bharat coaches.
Economic Empowerment Initiatives: Extending the Ayushman Bharat Scheme to all Asha workers, providing housing for the middle class, and targeting an increase in the number of Lakhpati Didis to 3 crores underscore the government’s commitment to economic empowerment.
Market Implications: Investors can anticipate positive implications with the withdrawal of direct tax demands and lower market borrowings. Sectors aligned with economic empowerment, like healthcare and affordable housing, present potential opportunities.
Bond Market Relief: Relief for the bond market follows lower gross borrowing and fiscal deficit numbers. An 8 basis points fall in bond yields and stable rupee trading signal positive outcomes.
Tech-Savvy Youth: Budget 2024 introduces a golden era for tech-savvy youth, offering 50-year interest-free loans for innovation, recognizing innovation as the foundation of development.
Green Energy Boost: The government aims to strengthen the electric vehicle (EV) ecosystem by supporting EV manufacturing and charging infrastructure. A new scheme for bio-manufacturing promotes green growth.
Inclusive Progress: Empowering the ‘Garib,’ ‘Mahilayen,’ ‘Yuva,’ and ‘Annadata’ reflects a vision of inclusive progress, marking a positive step towards a prosperous India.
Global Investor Confidence: The budget emphasizes prudent financial planning, building confidence with global investors by showcasing fiscal rectitude and a commitment to sustainable growth.
Rooftop Solarisation: A scheme for rooftop solarisation aims to provide 1 crore households with up to 300 units of free electricity every month.
FDI Inflows: FDI inflows stand at $596 billion, double that of 2014-15, marking a golden era and highlighting India as an attractive destination for foreign investment.
Middle Class Housing Scheme: A new scheme for middle-class housing, facilitating the purchase or construction of houses, addresses housing concerns for those in slums, chawls, or rented houses.
Focus on Agriculture: The budget expands the Matsya Sampada Yojana to generate more employment and increase earnings in the fisheries sector, aiming to reach the target of INR 1 lakh crore in exports.
Proactive Inflation Management: The government’s proactive inflation management is acknowledged, keeping inflation within policy bands and contributing to overall economic stability.
Sectors & Industries to Watch Out For:
Renewable Energy: With a focus on green energy, companies in the renewable energy sector are poised for growth, especially those involved in EV manufacturing and charging infrastructure.
Healthcare: The extension of the Ayushman Bharat Scheme and the commitment to inclusive growth in healthcare make this sector a potential hotspot for investors.
Infrastructure: The increased capex in rail infrastructure projects and the overall focus on sectoral development present opportunities for companies in the infrastructure sector.
Technology and Innovation: The budget’s emphasis on a golden era for tech-savvy youth and interest-free loans for innovation highlights the government’s commitment to technological advancement, making this sector one to watch.
Conclusion: Budget 2024 unfolds as a multifaceted strategy, blending stability, growth, and inclusivity. These 15 key highlights provide a comprehensive understanding of the budget’s potential impact on India’s economic landscape, urging stakeholders to adapt and seize emerging opportunities.
