New Delhi: Finance Minister Nirmala Sitharaman is presenting her seventh consecutive Budget in Parliament today – Tuesday, July 23. The Budget for 2024-25 is being considered the action plan for the Modi 3.0 government to outline a roadmap towards India’s development in the next five years.
In her 7th record Union Budget, Nirmala Sitharaman announced key employment schemes. She is also expected to announce an increase in the basic exemption limits under both old and new tax regimes in a huge relief for the middle class.
Prime Minister Narendra Modi yesterday had said that the Finance Minister will present a strong budget, adding that he will ensure that the government’s guarantees reach the common man. Nirmala Sitharaman yesterday – on the first day of the Monsoon Session of Parliament – tabled the Economic Survey in Parliament.
Stay tuned to our live blog as we bring all the relevant developments and updates on Union Budget 2024.
Budget 2024 LIVE Updates: Nirmala Sitharaman’s Big Employment Announcements in Budget Speech, Tax Relief Likely
As anticipation builds, Finance Minister Nirmala Sitharaman’s Budget 2024 speech has captured the nation’s attention, promising substantial employment initiatives and potential tax reliefs aimed at bolstering India’s economic growth and addressing critical employment challenges. Here, we provide comprehensive live updates and insights into the major announcements that are expected to shape India’s economic landscape.
Big Employment Announcements
In a significant move, Sitharaman has prioritized employment generation as a central theme of Budget 2024. Recognizing the critical need to create jobs, especially in the wake of global economic uncertainties and domestic challenges, the Finance Minister unveiled a series of initiatives aimed at revitalizing the job market.
1. Focus on Skill Development:
A pivotal component of the employment strategy involves enhancing skill development programs. The government plans to expand the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) with an increased budget allocation. This expansion aims to equip the youth with industry-relevant skills, making them more employable and bridging the skill gap prevalent in various sectors.
2. Boost to Manufacturing and MSMEs:
To stimulate job creation in the manufacturing sector, Sitharaman announced a series of incentives for the Micro, Small, and Medium Enterprises (MSMEs). These include easier access to credit, reduced compliance burdens, and subsidies for adopting advanced technologies. The ‘Make in India’ initiative receives a fresh impetus with policies designed to attract both domestic and foreign investments into manufacturing hubs.
3. Infrastructure Development:
Infrastructure development continues to be a cornerstone of the government’s employment strategy. Sitharaman highlighted new projects in road construction, railways, and urban development that are expected to generate millions of jobs. The National Infrastructure Pipeline (NIP) will see an increased outlay, focusing on completing pending projects and initiating new ones, thereby creating direct and indirect employment opportunities.
4. Agriculture and Rural Employment:
Addressing rural unemployment, the budget introduces measures to boost the agricultural sector and allied industries. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) sees a significant hike in funding, ensuring a robust safety net for rural laborers. Additionally, initiatives to promote agro-processing industries aim to create jobs within rural areas, reducing urban migration pressures.
Tax Relief Measures
Alongside employment initiatives, the Budget 2024 is expected to bring much-needed tax reliefs, aiming to enhance disposable incomes and stimulate consumer spending.
1. Income Tax Revisions:
Sitharaman is likely to propose revisions in the income tax slabs, providing relief to middle-class taxpayers. By increasing the threshold for taxable income and introducing higher exemption limits, the government aims to boost disposable incomes, encouraging greater spending and investment.
2. Corporate Tax Incentives:
To invigorate the business environment, especially for startups and MSMEs, corporate tax rates may be reduced further. Tax holidays and incentives for sectors such as technology, renewable energy, and healthcare are expected to attract new investments and spur job creation.
3. Simplification of Tax Compliance:
In a bid to simplify tax compliance, the Finance Minister announced measures to streamline the tax filing process. Enhanced digital infrastructure for tax administration will make compliance easier for individuals and businesses alike, reducing bureaucratic hurdles and encouraging voluntary compliance.
Economic and Social Impact
The dual focus on employment and tax reliefs underscores the government’s commitment to fostering economic resilience and social equity. By creating jobs and enhancing disposable incomes, these measures are expected to have a multiplier effect on the economy, boosting consumption, increasing savings, and driving investments.
Sectoral Reactions
1. Industry Leaders:
Industry leaders have lauded the budget’s focus on employment and skill development. Rajesh Agarwal, CEO of a leading manufacturing firm, stated, “The incentives for MSMEs and manufacturing are timely and essential. These measures will not only create jobs but also enhance the competitiveness of Indian industries on a global scale.”
2. Economists:
Economists have appreciated the balanced approach of the budget. Dr. Meera Shankar, a noted economist, commented, “The emphasis on infrastructure and rural employment is crucial for inclusive growth. Tax reliefs will boost consumer confidence, which is vital for sustaining economic momentum.”
Conclusion
Budget 2024 marks a significant step towards addressing India’s employment challenges and providing tax reliefs to spur economic growth. The initiatives outlined by Finance Minister Nirmala Sitharaman are poised to create substantial job opportunities, enhance skill development, and stimulate economic activities across various sectors. As the detailed implications of these announcements unfold, stakeholders remain optimistic about the positive trajectory set for India’s economic future.
