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FM Nirmala Sitharaman Delivers Union Budget 2024-25

Finance Minister Nirmala Sitharaman announces a package of five schemes for education, skilling and employment with an outlay of INR 2 lakh crore.

A detailed roadmap for Vikshit Bharat in line with the economic vision is presented through the budget, says Nirmala.

For farmers, the government announced higher MSP a month ago for all major crops. The PM Garib Kalyan Anna Yojana was extended for five years to benefit more than 80 crore people.

She further states that administrative actions for the approval and implementation of various schemes announced in the interim budget are on.

The financing support for farmers will be facilitated through NABARD.

1.52 lakh crore allocation for agriculture and allied sector

The Finance Minister said that job creation in the manufacturing sector will be incentivized through a scheme linked to the employment of first-time employees.

This scheme will ensure incentives to both employees and employers concerning EPFO contributions for the first four years of job, benefitting 30 lakh youth and cover additional employment in all sectors.

FM said that the government will reimburse employers up to INR 3,000 per month for two years towards EPFO contributions for each additional employee, incentivising the additional employment of 50 lakh people.

Participation of women in the workforce through collaboration with industries. The partnership will seek to organise women skilling programs, said Nirmala.

25,000 youth to be skilled over the next five years.

Offshore blocks for mining and exploration are already carried out.

What Did the FM Announce for MSMEs?

The model skill loan will be revised to INR 7.5 lakh crore through a guarantee by the government-promoted fund, a monumental announcement by the FM.

Government announces loan support of up to Rs 10 lakh for higher education.

Multilateral development banks will be expedited for the development of Bihar on the request of the state government.

Formulated a package for financing and regulatory changes concerning MSMEs in the manufacturing sector.

Guarantee cover worth up to INR 1 crore for MSMEs, announces FM Nirmala Sitharaman.

Bank credit for MSMEs with stressed accounts to help continue business and stay out of NPA crisis.

Mudra loan for entrepreneurs who have previously repaid the loan under 'Tarun' category.

Setting up of 100 food quality and testing labs

12 industrial parks under the national corridor development program will also be sanctioned, says Nirmala

Integrated technology for IBC ecosystem will be launched to improve banking efficiency.

Appropriate changes to the IBC and tribunal will be made through resolution under the Companies Act.

FM Announces Allocations for Housing Schemes

The government will facilitate the development of cities, utilising town planning schemes.

INR 10 lakh core, including central assistance of 2.2 lakh crore, as part of PM Awas Yojana will be allocated, says hon'ble FM.

What Did the FM Announce for Power Projects?

PM Surya Garg Muft Bijli Yojana has been launched to install rooftop solar plants to enable 1 crore households avail free electricity. The scheme has generated remarkable response with 15 lakh applications.

A policy will be launched to promote electricity projects, says FM.

800 megawatt commercial plant using advanced technology will be facilitated. The government will provide the required infrastructure to make this project a grand success.

Fiscal support for infratsure for the next five years in conjunction with other priorities

INR 11 lakh crore for infratructure announced by the FM.

A provision for 5.5 lakh crore ensuring interest-free loan for infrastructure development.

Vishnubad Temple and Bodh Gaya Temple of Bihar are of immense spiritual significance. These corridors will be supported on lines Kashi Vishwanath temple, fostering world-class tourism experience.

FM announces to revive the Nalanda University and Odisha's scenic beauty, crastsmanship and sanctuaries by providing financial assistance.

INR 1000 crore fund will be set up for the space research.

A scheme for promoting for all factors of production will be launched by the government, says FM.

Interest-free loan for land-related reforms, both in rural and urban areas, will be implemented.

A wide array for services for labour will be launched.

Shram Suvidha and Samadhan portal will be revamped for ease of compliance for industries and trade.

The government will introduce a strategy to improve the financial sector.

Rules for foreign direct investment and overseas investment will be simplified, says Hon'ble FM

Adoption of technologies for digitalisation of economy.

Fiscal deficit is defict is estimated at 4.9% of the GDP.

GST has decreased the compliance for trade and industries while enhancing revenues for the state and central government.

Custom duty proposals are aimed at promoting domestic investment while keeping the larger interest of the nation intact.

Custom Duty Announcements

Medicine & medical equipment for cancer patients are exempted from custom duty

BCD on X-ray tubes and flat panel detectors are exempted

BCD on mobile chargers reduced to 15%

Custom duty exemption on 25 critical minerals and reduce BCD on two minerals

Expand the list of exempted capital goods for use in solar panels

Reduce BCD on real down-filling materials from duck

BCD reduced on methaline, MDI for manufacture of yarn to 5.5%

Reduce custom duty on gold and silver to 6% and those on platinum to 6.4%

NIL BCD for nickel cathode

Remove BCD, subject to conditions, on oxygen-free copper

BCD raised to 25% from 10% on plastics and PVCs to abandon the use of non-biodegradable materials

Direct Tax Announcements

Two tax exemption regimes for charity are to be merged into one.

TDS rate on e-commerce operates to be reduced to 0.1%

Standard operating procedure for TDS defaults

Provisions for reopening and reassessment for taxpayers

Capital gains taxation is simplified

Long-term gains of financial and non-financial assets will attract a tax rate of 12.5%

Exemption on LTCG raised to INR 1.25 lakh from INR 1 lakh

Listed financial assets held for more than a year will be classified as long-term

Debt mutual funds and market-linked debentures will continue to attract tax at applicable rates.

Abolishment of angel tax for all investors

Simple tax regime for foreign shipping companies with domestic operations in India

Safe harbour rates for foreign companies selling raw diamonds in India

Corporate tax rate for foreign companies reduced from 40% to 35%

Tax on income received on buyback of shares

Standard deduction raised to INR 75,000 from INR 50,000 under the new tax regime

In the new tax regime, proposed tax rates are as follows

0-3 lakh - NIL

3-7 Lakh _ 5%

7-10 Lakh -10%

10-12 Lakh - 15%

12-15 Lakh - 20%

Above 15 Lakh -30%

An Overview of the Economy, Budget Expectations and More

The Union Cabinet sits to discuss the Union Budget 2024-25. Finance Minister Nirmala Sitharaman is going to present her seventh straight budget as the government lays a roadmap for a 'Developed India' by 2047. With that, she holds an envious record of having presented the maximum budget for India, overtaking Morarji Desai who previously held the record of delivering six straight budgets.

All eyes are on this budget as the Common Man of India seeks income tax relief to get more in hand to deal with the burgeoning inflation. Retail inflation surged to 5.08% in June 2024 from 4.75% a month ago. Also, worrying is the high market cap to GDP ratio as highlighted in the economic survey.

The cabinet meeting concludes as Prime Minister Narendra Modi heads to the Parliament. The cabinet has approved the Union Budget 2024-25, which will decide the economic movement for the next one year. The focus will also be on job creation, education package, infrastructure push, green energy ecosystem and more. As per market experts, the government will continue to lay emphasis on building a skilled workforce through several initiatives.