Relax boys & girls, we read the entire Budget 2024, so you don't have to!
THREAD: Everything you need to know about the Annual Budget (in the easiest way possible)🧵
THREAD: Everything you need to know about the Annual Budget (in the easiest way possible)🧵
There are 2 parts of this budget:
💸Part A, which is focused on 9 budget priorities, and
💸Part B, which is focused on direct and indirect taxes.
While everyone is extensively talking about Part B, we believe everyone should also know more about Part A.
💸Part A, which is focused on 9 budget priorities, and
💸Part B, which is focused on direct and indirect taxes.
While everyone is extensively talking about Part B, we believe everyone should also know more about Part A.
So, in this read, we’ll be focusing more on that.
1⃣Productivity & resilience in Agriculture
In this budget, the allocation for agriculture has been increased by 21.6%, reaching ₹1.52L Cr.
The Digital Public Infrastructure will be established to enhance banks’ ability
1⃣Productivity & resilience in Agriculture
In this budget, the allocation for agriculture has been increased by 21.6%, reaching ₹1.52L Cr.
The Digital Public Infrastructure will be established to enhance banks’ ability
— to assess farmers' creditworthiness.
10,000 new Bio-input Resource Centers will be created to support sustainable farming practices.
And now the Agri-infrastructure fund got increased to to ₹30,000 Cr from ₹25,000 Cr to support cold-storage facilities and warehouses etc.
10,000 new Bio-input Resource Centers will be created to support sustainable farming practices.
And now the Agri-infrastructure fund got increased to to ₹30,000 Cr from ₹25,000 Cr to support cold-storage facilities and warehouses etc.
2⃣ Employment & Skilling
The govt provided a very holistic outline to uplift the youth by providing employment opportunity and skill upliftment.
It is planning to implement 3 schemes for “Employment Linked Incentive” to first time employees and employers.
The govt provided a very holistic outline to uplift the youth by providing employment opportunity and skill upliftment.
It is planning to implement 3 schemes for “Employment Linked Incentive” to first time employees and employers.
👉The new entrants would get 1 month wage in all formal sectors
— along with Direct Benefit Transfer of 1 month salary in 3 instalments up to ₹15,000.
👉To boost employment in manufacturing sector, additional employment is being incentivized for the 1st time employees.
— along with Direct Benefit Transfer of 1 month salary in 3 instalments up to ₹15,000.
👉To boost employment in manufacturing sector, additional employment is being incentivized for the 1st time employees.
👉To support employers, the govt will provide a reimbursement of up to ₹3,000/month for 2 years to cover their EPFO contributions.
Additionally, the govt aims to skill 20 lakh youth over a 5-years period.
Additionally, the govt aims to skill 20 lakh youth over a 5-years period.
Lastly, to support students financially, 2 loan initiatives were highlighted:
~ Model Skill Loan Scheme to facilitate loans up to ₹7.5L
~ Loan up to ₹10L for high studies in domestic institution.
~ Model Skill Loan Scheme to facilitate loans up to ₹7.5L
~ Loan up to ₹10L for high studies in domestic institution.
3⃣ Inclusive Human Resource Development and Social Justice
To achieve all-round, all-pervasive and all-inclusive development of people, the govt is aiming to empower individuals by enhancing their skills & abilities,
— so that they can focus on their health & education.
To achieve all-round, all-pervasive and all-inclusive development of people, the govt is aiming to empower individuals by enhancing their skills & abilities,
— so that they can focus on their health & education.
👉Purvodaya- The govt has launched this new plan for an all-round development of eastern-region of India
— including Bihar, Jharkhand, West Bengal, Odisha & Andhra Pradesh.
This plan is outlined to attain Vikist Bharat by providing for human resource & infra development.
— including Bihar, Jharkhand, West Bengal, Odisha & Andhra Pradesh.
This plan is outlined to attain Vikist Bharat by providing for human resource & infra development.
👉Govt will also support the development of road connectivity projects of
~ Patna-Purnea Expressway
~ Buxar-Bhagalpur Expressway
~ Bodhgaya, Rajgir, Vaishali & Darbhanga spurs
~ and additional 2-lane bridge over river Ganga at Buxar at a total cost of ₹26,000 Cr.
~ Patna-Purnea Expressway
~ Buxar-Bhagalpur Expressway
~ Bodhgaya, Rajgir, Vaishali & Darbhanga spurs
~ and additional 2-lane bridge over river Ganga at Buxar at a total cost of ₹26,000 Cr.
👉Pradhan Mantri Janjatiya Unnat Gram Abhiyan (PMJUGA)
The govt will launch this scheme to improve the socio-economic conditions of tribal communities. It will cover 63,000 villages and benefit 5 Cr tribal people.
The govt will launch this scheme to improve the socio-economic conditions of tribal communities. It will cover 63,000 villages and benefit 5 Cr tribal people.
4⃣ Manufacturing & Services
To support MSMEs & manufacturing sector, several measures are being taken by the govt.
👉Credit Guarantee Scheme for MSMEs in the Manufacturing Sector- ₹100 Cr will be provided to MSMEs under this scheme to purchase equipment without collateral.
To support MSMEs & manufacturing sector, several measures are being taken by the govt.
👉Credit Guarantee Scheme for MSMEs in the Manufacturing Sector- ₹100 Cr will be provided to MSMEs under this scheme to purchase equipment without collateral.
👉Mudra Loans- The limit of Mudra loans will be enhanced from ₹10L to ₹20L for entrepreneurs under the ‘Tarun’ Category.
👉Small Industries Development Bank of India (SIDBI) branches in MSME clusters- SIDBI will open 24 new branches this year,
👉Small Industries Development Bank of India (SIDBI) branches in MSME clusters- SIDBI will open 24 new branches this year,
— expanding its direct credit service to 168 of 242 major MSME clusters within 3 years.
5⃣ Urban Development
By utilizing the town planning schemes for the orderly development of peri-urban areas, the govt is focusing on the development of “Cities as Growth Hubs”.
5⃣ Urban Development
By utilizing the town planning schemes for the orderly development of peri-urban areas, the govt is focusing on the development of “Cities as Growth Hubs”.
Other than this, under the PM Awas Yojana Urban 2.0, ₹10L Cr will be invested to address housing needs for 1 Cr urban poor & middle-class families
— including ₹2.2L Cr in central assistance and interest subsidies for affordable loans over the next 5 years.
— including ₹2.2L Cr in central assistance and interest subsidies for affordable loans over the next 5 years.
6⃣ Energy Security
To ensure energy security, the govt is planning to work on various schemes for balanced employment & growth.
👉PM Surya Ghar Muft Bijli Yojana- This scheme aims to provide free electricity up to 300 units monthly for 1 Cr houses through rooftop solar plants.
To ensure energy security, the govt is planning to work on various schemes for balanced employment & growth.
👉PM Surya Ghar Muft Bijli Yojana- This scheme aims to provide free electricity up to 300 units monthly for 1 Cr houses through rooftop solar plants.
👉R&D of small & modular nuclear reactors- Nuclear energy would make a very significant part of our country's energy mix.
So, govt is taking some crucial steps with pvt sector like:
~ Setting up Small Reactors
~ R&D of Modular Reactor
~ R&D of newer tech for nuclear energy
So, govt is taking some crucial steps with pvt sector like:
~ Setting up Small Reactors
~ R&D of Modular Reactor
~ R&D of newer tech for nuclear energy
7⃣ Infrastructure
Our govt has approved ₹11,11,111 Cr to finance the infra development this year which is about 3.4% of our total GDP.
Govt is also appealing states to provide better support of similar scale for infrastructure.
A provision has also been made of ₹1.5L Cr
Our govt has approved ₹11,11,111 Cr to finance the infra development this year which is about 3.4% of our total GDP.
Govt is also appealing states to provide better support of similar scale for infrastructure.
A provision has also been made of ₹1.5L Cr
— for long-term interest free loans to support the states.
As Bihar frequently suffers from floods during Monsoon season, govt is planning to provide financial support of ₹11,500 Cr to more than 20 projects to tackle the situation better in the upcoming years.
As Bihar frequently suffers from floods during Monsoon season, govt is planning to provide financial support of ₹11,500 Cr to more than 20 projects to tackle the situation better in the upcoming years.
8⃣ Innovation, Research & Development
Govt will establish the Anusansadhan National Research Fund for basic research & prototype development
— and will create a ₹1L Cr financing pool to boost private sector-driven research & innovation.
Govt will establish the Anusansadhan National Research Fund for basic research & prototype development
— and will create a ₹1L Cr financing pool to boost private sector-driven research & innovation.
9⃣ Next Generation Reforms
The govt is working on formulation of an Economic Policy Framework to set out the overarching approach to economic development.
They’re planning:
~ Rural & Urban land-related reforms
~ Labour Related reforms and
~ Capital & entrepreneurship reforms
The govt is working on formulation of an Economic Policy Framework to set out the overarching approach to economic development.
They’re planning:
~ Rural & Urban land-related reforms
~ Labour Related reforms and
~ Capital & entrepreneurship reforms
Now let’s move Part B.
1. Providing Tax Relief
Apart from the revised tax slabs in the New Tax Regime, the standard deduction for salaried employees has also been increased from ₹50,000 to ₹75,000.
As a result, a salaried employee could save up to ₹17,500 in income tax.
1. Providing Tax Relief
Apart from the revised tax slabs in the New Tax Regime, the standard deduction for salaried employees has also been increased from ₹50,000 to ₹75,000.
As a result, a salaried employee could save up to ₹17,500 in income tax.
2. Simplification of Capital Gains Tax
The taxation of capital gains will be rationalized and simplified, effective immediately.
The taxation of capital gains will be rationalized and simplified, effective immediately.
3. Securities transaction tax (STT) rates will increase
For options, the rate will increase from 0.0625% to 0.1% of the option premium.
For futures, the rate will rise from 0.0125% to 0.02% of the trading price.
For options, the rate will increase from 0.0625% to 0.1% of the option premium.
For futures, the rate will rise from 0.0125% to 0.02% of the trading price.
4. Custom Duty Rate Changes
The basic custom duty (BCD) has been slashed or eliminated for commodities such as cancer medicines, precious metals, EVs
— to boost domestic manufacturing and increase exports competitiveness.
The basic custom duty (BCD) has been slashed or eliminated for commodities such as cancer medicines, precious metals, EVs
— to boost domestic manufacturing and increase exports competitiveness.
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Correction:
The table on the left shows the earlier tax slabs, while the table on the right shows the revised tax slab, where the tax rate for total income above ₹15 lakh is 30%, not 25%.
The table on the left shows the earlier tax slabs, while the table on the right shows the revised tax slab, where the tax rate for total income above ₹15 lakh is 30%, not 25%.
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