BUDGET 2024 HIGHLIGHTS (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     2nd February 2024        
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Context: Finance Minister Nirmala of India confirmed the continuation of existing tax rates, covering direct, indirect taxes, and export duties.

Highlights of Budget 2024-25

  • Stability in Tax Rates: There are no changes in direct, indirect tax rates
  • Relief for Taxpayers: The government withdrew income tax demands up to ₹25,000 (till 2009-10) and ₹10,000 from 2010-11 to 2014-15. This will benefit about one crore taxpayers
  • Support for Middle Class: A scheme to help middle class living in rented houses to buy or build their own houses will be launched
  • Extended Tax Benefits for Start-ups: Tax benefits to start-ups and investments made by sovereign wealth or pension funds extended by 1 year till March 31, 2025
  • Boost in Capital Expenditure: Capital expenditure hiked 11% to ₹11.11-lakh crore
  • Fiscal Deficit Projection: At 5.1%, lower than the revised estimate (5.8%) in FY24
  • Reduced Borrowing: Govt to borrow ₹14.13-lakh crore in next fiscal, lower than ₹15.43 lakh crore in FY24
  • Nominal GDP Growth: For FY25 is projected at 10.5%
  • Mop-up from central public sector enterprises (CPSEs) disinvestment pegged at ₹50,000 crore for FY25, up from ₹30,000 crore in FY24
  • Tax Collection Goals: Gross tax revenue target for FY25 hiked 11.46% to ₹38.31-lakh crore, from ₹34.37 lakh crore in FY24

oDirect tax collection target set at ₹21.99-lakh crore, while that of indirect tax is at ₹16.22-lakh crore

  • Transparency: The government will release a white paper on mismanagement of economy prior to 2014
  • Next Generation Reforms: It will be unveiled in consultation with States and stakeholders.
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