Budget 2024: No Tax Changes, Rooftop Solar Scheme, Housing Scheme For Middle Class

Union Finance Minister Nirmala Sitharaman made no major announcement in her interim budget speech on Thursday. At 58 minutes, it was her shortest-ever budget speech.

Sitharaman Matches Desai's Record

With this budget presentation, Sitharaman has matched the record set by former Prime Minister Morarji Desai, who served as Finance Minister and presented five annual budgets and one interim budget between 1959 and 1964. It is her sixth Budget as the Finance Minister and the last in the second term of the Modi government.

In a relief to the citizens, she announced that the centre is neither tweaking nor raising the tax burden on citizens. "As for tax proposals, in keeping with the convention, I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties," said Sitharaman.

"However, certain tax benefits to start-ups and investments made by sovereign wealth or pension funds as also tax exemption on certain income of some IFSC units are expiring on 31.03.2024. To provide continuity in taxation, I propose to extend the date to 31.03.2025." The government proposed to increase capital expenditure outlay by 11.1 per cent to Rs 11.11 lakh crore in 2024-25.

A capital expenditure(capex) is utilized to establish long-term physical assets or fixed assets. In the previous year, during the final full Budget under the leadership of Prime Minister Narendra Modi's second term, the government proposed a 33 per cent increase in the capital expenditure outlay to Rs 10 lakh crore in 2023-24, which was estimated to be 3.3 per cent of the GDP.

The substantial increase in capex plays a crucial role in the government's efforts to boost growth potential and create employment opportunities, attract private investments, and provide a safeguard against global challenges. The interim budget addressed the financial requirements during the intervening period until a new government is formed after the Lok Sabha elections. A comprehensive budget will be presented by the new government in July.

Corpus of Rs 1 Lakh Crore To Scale Up Research In Sunrise DomainsS

Sitharaman said this will be a golden era for India's tech-savvy youth. "A corpus of Rs 1 lakh crore will be established with 50-year interest-free loan. The corpus will provide long-term financing or refinancing with long tenures and low or nil interest rates," she said.

"This will encourage the private sector to scale up research and innovation significantly in sunrise domains. We need to have programmes that combine the powers of our youth and technology," she added.

The budget session of Parliament commenced on Wednesday with President Droupadi Murmu addressing a joint sitting of Lok Sabha and Rajya Sabha.

During her speech to Parliament, the President highlighted the importance of economic development and emphasized the need for collective efforts to achieve progress and prosperity.

Highlights:

• No changes in the tax slab.
• Focusing on technological advancements for defense, the Finance Minister introduced a new scheme to strengthen deep-tech technologies. The initiative aims to expedite self-reliance and bolster the country's defense capabilities.
• The FM made an over rooftop solarization, a step towards sustainable energy solutions. The Finance Minister shared that one crore households would benefit from up to 300 units of free electricity through this innovative approach.
• Recognizing the potential of port connectivity in boosting tourism and employment, she announced the centre's plans to launch infrastructure projects in the Lakshadweep islands. This development is anticipated to not only attract tourists but also create job opportunities for the local population.
• The Finance Minister highlighted the significant strides in the railway sector, unveiling plans for the implementation of three major railway corridors. This move is poised to improve connectivity, facilitate transportation, and contribute to the overall development of the country.
• Extending the ambit of the Ayushman Bharat schemes, the Finance Minister announced the inclusion of ASHA and Anganwadi workers in the healthcare coverage. This expansion ensures that those at the grassroots level have access to quality healthcare services.
• Vaccination for girls: Encouragement of vaccination for girls aged 9 - 14 years to prevent cervical cancer.
• Lastly, the government is set to launch a housing scheme. This initiative reflects a commitment to providing affordable housing solutions, empowering the middle class with the opportunity to own a home.