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India Budget 2024 LIVE: FM Sitaraman Unveils Major Tax and Jobs Reforms; Opposition Calls it a ‘Kursi-Saving Budget’

The wait is over… The treasury of the Modi government’s third term first budget has been unveiled. Finance Minister Nirmala Sitharaman has announced that the government’s budget will focus on nine priorities, including employment, skill development, and infrastructure. During the budget speech, several important announcements related to employment were made. Additionally, the budget aims to win over the middle class by offering relief in income tax slabs. Furthermore, one of the major announcements includes making several essential items cheaper.

Key Announcements and Reforms

Employment and Skill Development

The budget emphasizes generating employment opportunities and enhancing skill development programs. This includes the introduction of new training initiatives and expanding existing ones to meet the evolving needs of the job market. The government aims to align these programs with industry requirements to ensure that the workforce is equipped with relevant skills.

Infrastructure Development

A significant portion of the budget is dedicated to infrastructure development. This includes investments in building and upgrading roads, railways, airports, and other critical infrastructure. The aim is to boost economic growth, improve connectivity, and create jobs through these projects.

Major Announcements in the Budget Speech
FM Nirmala Sitharaman's 2023 Budget speech was 87 minutes; See her longest  and shortest speeches - BusinessToday

Reduction in Customs Duty on Cancer Drugs

In a move to provide relief to cancer patients, Finance Minister Nirmala Sitharaman announced the removal of customs duty on three cancer drugs. This decision is expected to reduce the cost of treatment for patients and make these essential drugs more accessible.

Increase in Price of Cigarettes

On the other hand, the budget includes an increase in the price of cigarettes. This measure is likely aimed at discouraging smoking and increasing government revenue through higher taxes on tobacco products.
cigarettes tax

Changes in Tax Slabs

Finance Minister Nirmala Sitharaman has provided relief to the middle class with changes in the income tax slabs:

  • Standard Tax Deduction: Increased from ₹50,000 to ₹75,000.
  • 0 to ₹3 Lakh Annual Income: No tax.
  • ₹3 Lakh to ₹7 Lakh Annual Income: 5% tax.
  • ₹7 Lakh to ₹10 Lakh Annual Income: 10% tax.
  • ₹10 Lakh to ₹12 Lakh Annual Income: 15% tax.
  • ₹12 Lakh to ₹15 Lakh Annual Income: 20% tax.
  • Above ₹15 Lakh Annual Income: 30% tax.

These changes are designed to provide financial relief to the middle-income segment and increase disposable income.

Customs Duty Cuts to Boost Domestic Manufacturing and Exports

To support domestic manufacturing and boost exports, the budget proposes several cuts in customs duty:

These reductions are aimed at making these items more affordable and encouraging local manufacturing, which in turn is expected to create jobs and enhance export competitiveness.

Stock Markets React to Budget

The stock markets responded with high volatility during the budget presentation. The Sensex tanked 1,266.17 points to 79,235.91 following the announcement of a hike in Securities Transaction Tax (STT) on Futures and Options (F&O). The Nifty also tumbled 435.05 points to 24,074.20. This reaction indicates investor concerns over the increased tax on trading activities.
stock market

Historic Budget Presentation

Union Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 on July 23, 2024, marking her seventh consecutive budget presentation. This achievement sets a new record, surpassing Morarji Desai, who presented the Union Budget six times consecutively. Desai holds the record for presenting the budget 10 times in total, followed by former Finance Minister P. Chidambaram, who presented the budget nine times.

Opposition’s Response

The opposition has termed the budget as a ‘kursi-saving budget’, implying that it is designed to secure political support rather than address the real economic challenges facing the country. Critics argue that while the budget offers some relief to the middle class and focuses on infrastructure and employment, it may not be enough to tackle deeper economic issues.

Conclusion

The India Budget 2024 brings a mix of reforms and reliefs aimed at different sectors of the economy. From tax reforms and job creation initiatives to reductions in customs duty on essential items, the budget aims to stimulate growth and provide relief to various segments of the population. However, the reaction from the stock markets and the opposition highlights that not all stakeholders are convinced about the efficacy of these measures. As the details of the budget continue to unfold, it remains to be seen how effectively these proposals will be implemented and what impact they will have on the Indian economy.

mayank
Author: mayank

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