The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman during the Monsoon Session of Parliament, outlines the Modi government’s roadmap for economic growth and development. This budget marks the Modi 3.0 administration’s first major policy announcement and Sitharaman’s seventh consecutive budget presentation.
Key Announcements
1. Infrastructure Development: The budget includes significant investments in infrastructure, with plans for new airports, medical facilities, and sports infrastructure in Bihar. This move aims to boost regional development and improve public amenities.
2. Financial Assistance to Andhra Pradesh: The government has announced special financial assistance to Andhra Pradesh to support its economic growth and development projects. This assistance is crucial for the state’s infrastructure and social welfare programs.
Economic Strategy
3. Economic Growth and Fiscal Consolidation: Sitharaman faces the dual challenge of fostering economic growth while controlling inflation and maintaining fiscal discipline. The budget seeks to balance investment and consumption to support productive sectors and achieve sustainable growth.
4. $5 Trillion Economy Goal: The budget outlines strategies to propel India towards becoming a $5 trillion economy and the world’s third-largest economy. This includes policies to boost investment, enhance tax revenues, and support public spending.
5. Agriculture and Employment: Addressing the needs of the agriculture sector and generating employment are key priorities. The budget proposes measures to enhance agricultural productivity and create job opportunities across various sectors.
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Tax Reforms
6. Potential Tax Relief: The salaried class anticipates potential tax relief through reductions in personal tax rates or increased tax exemption limits. The government may introduce these changes under the new tax regime to benefit taxpayers.
7. Fiscal Dividend: The government benefits from a strong economic foundation and a substantial dividend of Rs 2.11 lakh crore from the Reserve Bank of India (RBI) for FY24. This dividend will support fiscal consolidation, reduce the debt-to-GDP ratio, and lower market borrowing.
Conclusion
The Union Budget 2024 aims to set the stage for sustained economic stability and growth. With a focus on infrastructure, financial assistance, economic strategy, and tax reforms, the budget addresses the nation’s immediate needs while laying the groundwork for future prosperity.
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