What are the most significant announcements?
The standard deduction for salaried employees will be hiked to ₹75,000, from ₹50,000 under the new income tax regime in FY25.
The Union Budget 2024-25 identified nine priorities for generating ample opportunities —
Insights:
1) All major schemes for farmers see an increase in allocation:
Union Finance Minister allocated about ₹ 1.50 lakh crore to the agriculture sector. Almost all major schemes for farmers see an increase in allocation compared to previous budgets. However, the fertilisers subsidy is down by about ₹1 lakh crore when compared to the actual expenditure in 2022-23.
To address the price rise, the Finance Ministry has also provided ₹10,000 crore to the price stabilisation fund. In the last budget, the allocation was just ₹10 lakh
2) Are you Natural Enthusiast? Budget 2024 signals arrive of compulsory emission targets for industry:
For the first time Central Government signalled that polluting industries, such as iron, steel, and aluminium will have to conform to emission targets.
“A roadmap for moving the ‘hard to abate’ industries from ‘energy efficiency’ targets to ‘emission targets’ will be formulated. Appropriate regulations for transition of these industries from the current ‘Perform, Achieve, and Trade’ mode to ‘Indian Carbon Market’ mode will be put in place.
3) What’s in it for markets and investors?
For deepening tax base the Finance Minister has proposed to increase Securities Transaction Tax on Futures and Options contracts to 0.2% and 0.1%, respectively. This was expected to curb volatility in the market for which everyone including SEBI was concerned.
Also now income received on buyback of shares will be taxed in the hands of the recipient. As per the budget proposals now unlisted bonds and debentures, debt mutual funds and market-linked debentures will attract tax on capital gains irrespective of holding period.
4) ₹10 lakh crore investment into scheme for urban housing
To address the housing needs of urban poor and middle class families, the Union Finance Minister has announced an investment of ₹10 lakh crore under the PM Awas Yojana-Urban 2.0, including the Central assistance of ₹2.2 lakh crore in the next five years.
While tabling the Union Budget 2024-25, the Finance Minister said that under the PM Awas Yojana Urban 2.0, housing needs of 1 crore urban poor and middle-class families will be addressed with an investment of ₹10 lakh crore. This will include the Central assistance of ₹2.2 lakh crore in the next five years.
5) 18% hike for Department of Space
The Department of Space received an 18% hike over its expenses in 2023-2024 in the 2024-2025 Union Budget. The bulk of the hike goes towards the development of space technologies. The allocation increased marginally for space applications, decreased for space sciences, and almost halved for INSAT satellite systems over the budgeted amount in 2023-2024.
Since successfully concluding the Chandrayaan-3 mission in August 2023, the future road map of the Indian Space Research Organisation (ISRO) has expanded to include a new ‘next generation’ launch vehicle, more ambitious missions to the moon, and an Indian space station. ISRO is also working on its ambitious human spaceflight programme, Gaganyaan.
6) Budget provides customs duty exemptions for three cancer treatment drugs
The Union government has continued its emphasis on tackling non-communicable diseases, and allocating funds for research in the healthcare sector, with Finance Minister on July 23 announcing customs duty exemptions on three cancer treatment drugs — Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.
“To provide relief to cancer patients, I propose to fully exempt three more medicines from customs duties. I also propose changes in the BCD (basic customs duty) on X-ray tubes and flat panel detectors for use in medical X-ray machines under the phased manufacturing programme,” the Finance Minister said.
Its just few Insights .. For Detailed Budget Speech and Highlight attached for reference:
The standard deduction for salaried employees will be hiked to ₹75,000, from ₹50,000 under the new income tax regime in FY25.
The Union Budget 2024-25 identified nine priorities for generating ample opportunities —
Productivity and Resilience in Agriculture,
Employment and Skilling, Inclusive Human Resource Development and Social Justice,
Manufacturing and Service,
Urban Development,
Energy Security,
Infrastructure,
Innovation,
Research and Development and
Next Generation Reforms.
A look at how government spends its moneyInsights:
1) All major schemes for farmers see an increase in allocation:
Union Finance Minister allocated about ₹ 1.50 lakh crore to the agriculture sector. Almost all major schemes for farmers see an increase in allocation compared to previous budgets. However, the fertilisers subsidy is down by about ₹1 lakh crore when compared to the actual expenditure in 2022-23.
To address the price rise, the Finance Ministry has also provided ₹10,000 crore to the price stabilisation fund. In the last budget, the allocation was just ₹10 lakh
2) Are you Natural Enthusiast? Budget 2024 signals arrive of compulsory emission targets for industry:
For the first time Central Government signalled that polluting industries, such as iron, steel, and aluminium will have to conform to emission targets.
“A roadmap for moving the ‘hard to abate’ industries from ‘energy efficiency’ targets to ‘emission targets’ will be formulated. Appropriate regulations for transition of these industries from the current ‘Perform, Achieve, and Trade’ mode to ‘Indian Carbon Market’ mode will be put in place.
3) What’s in it for markets and investors?
For deepening tax base the Finance Minister has proposed to increase Securities Transaction Tax on Futures and Options contracts to 0.2% and 0.1%, respectively. This was expected to curb volatility in the market for which everyone including SEBI was concerned.
Also now income received on buyback of shares will be taxed in the hands of the recipient. As per the budget proposals now unlisted bonds and debentures, debt mutual funds and market-linked debentures will attract tax on capital gains irrespective of holding period.
4) ₹10 lakh crore investment into scheme for urban housing
To address the housing needs of urban poor and middle class families, the Union Finance Minister has announced an investment of ₹10 lakh crore under the PM Awas Yojana-Urban 2.0, including the Central assistance of ₹2.2 lakh crore in the next five years.
While tabling the Union Budget 2024-25, the Finance Minister said that under the PM Awas Yojana Urban 2.0, housing needs of 1 crore urban poor and middle-class families will be addressed with an investment of ₹10 lakh crore. This will include the Central assistance of ₹2.2 lakh crore in the next five years.
5) 18% hike for Department of Space
The Department of Space received an 18% hike over its expenses in 2023-2024 in the 2024-2025 Union Budget. The bulk of the hike goes towards the development of space technologies. The allocation increased marginally for space applications, decreased for space sciences, and almost halved for INSAT satellite systems over the budgeted amount in 2023-2024.
Since successfully concluding the Chandrayaan-3 mission in August 2023, the future road map of the Indian Space Research Organisation (ISRO) has expanded to include a new ‘next generation’ launch vehicle, more ambitious missions to the moon, and an Indian space station. ISRO is also working on its ambitious human spaceflight programme, Gaganyaan.
6) Budget provides customs duty exemptions for three cancer treatment drugs
The Union government has continued its emphasis on tackling non-communicable diseases, and allocating funds for research in the healthcare sector, with Finance Minister on July 23 announcing customs duty exemptions on three cancer treatment drugs — Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.
“To provide relief to cancer patients, I propose to fully exempt three more medicines from customs duties. I also propose changes in the BCD (basic customs duty) on X-ray tubes and flat panel detectors for use in medical X-ray machines under the phased manufacturing programme,” the Finance Minister said.
Its just few Insights .. For Detailed Budget Speech and Highlight attached for reference:
