Decoding Interim Budget 2024: A Peek into India’s Financial Landscape
The interim fiscal year 2024-25 budget offers a comprehensive snapshot of India's financial trajectory, encompassing direct tax proposals, GST insights, and a strategic roadmap for Viksit Bharat 2047. Let's delve into the key takeaways that shape our economic landscape.
Direct Tax Proposals:
Steadfast Tax Rates:
The Finance Minister assures continuity in the direct tax rates for FY 2024-25, with no tax liability for incomes up to Rs. 7 lakh under the new tax regime.
Corporate Tax Landscape:
Existing domestic companies face a 22% tax rate, while new manufacturing companies enjoy a reduced 15% rate, fostering a conducive business environment.
Impressive Growth:
Direct tax collections have tripled over the past decade, showcasing financial resilience coupled with a noteworthy reduction in the average processing time for tax returns.
Start-up and IFSC Benefits:
The extension of tax benefits for start-ups, investments by sovereign wealth funds, and tax exemptions for specific IFSC units emphasizes the government's commitment to entrepreneurial growth.
GST Insights:
Revenue Surge:
The average monthly gross GST collection has doubled to Rs. 1.66 lakh crore in FY24, reflecting a robust economic framework.
Customs Rates Consistency:
Import duties and customs rates will remain unchanged in FY 2024-25, providing stability for businesses.
Viksit Bharat 2047 - Development Roadmap:
Four Pillars: The budget revolves around 'Garib,' 'Mahilayen,' 'Yuva,' and 'Annadata,' outlining a people-centric approach to inclusive development.
Infrastructure Boost: The vision encompasses physical, digital, and social infrastructure development, ensuring a holistic growth trajectory.
Digital Public Infrastructure: The introduction of Digital Public Infrastructure (DPI) aims to enhance formalization and financial inclusion.
Tax Base Expansion: The government commits to widening the tax base through GST, reinforcing financial stability.
Global Financial Hub: Establishing GIFT IFSC as a global capital and financial services gateway indicates a forward-looking approach.
Garib Kalyan, Desh ka Kalyan:
Direct Benefit Transfer (DBT) Impact: DBT initiatives have saved Rs. 2.7 lakh crore, facilitating financial empowerment for millions.
Poverty Alleviation: Remarkably, 25 crore people have escaped multidimensional poverty, showcasing effective welfare policies.
Youth Empowerment: Extensive training under the Skill India Mission and loans under PM Mudra Yojana depict a commitment to fostering youth entrepreneurship.
Agricultural Support: Financial assistance to farmers and advancements in crop insurance and eNAM integration underscore a comprehensive approach to the welfare of 'Annadata.'
Nari Shakti:
Women Entrepreneurship: Mudra Yojana loans and support for self-help groups (SHGs) have empowered women economically.
Educational Progress: Noteworthy increases in female enrolment in higher education and STEM courses affirm the commitment to female education.
Strategy Shift for Amrit Kaal as Kartavya Kaal:
Sustainable Development: The emphasis on 'Net Zero' by 2070, offshore wind energy, coal gasification, and CNG, PNG, and compressed biogas blending illustrate a shift towards green energy.
Infrastructure Investment: Major railway corridor programs, port connectivity, and urban transformation projects under PM Gati Shakti promise improved logistics and connectivity.
Inclusive Development:
Aspirational District Programme: A dedicated program to accelerate development in aspirational districts aligns with the vision of inclusive growth.
Healthcare, Housing, and Tourism:
Healthcare Initiatives: Measures include cervical cancer vaccination, Saksham Anganwadi, Poshan 2.0, and the extension of Ayushman Bharat coverage.
Housing Boost: Pradhan Mantri Awas Yojana and a new scheme for middle-class housing aim to address housing needs.
Tourism Promotion: States are encouraged to develop iconic tourist centers, fostering opportunities for local entrepreneurship.
Agriculture and Food Processing:
Post-Harvest Investment: The push for private and public investment in post-harvest activities indicates a commitment to agricultural growth.
Aquaculture Emphasis: Pradhan Mantri Matsya Sampada Yojana and integrated aquaparks support the development of fisheries.
Allocations for Ministries and Schemes:
Significant allocations for defense, road transport, railways, consumer affairs, and rural development demonstrate a balanced approach to sectoral growth.
Interim Budget vs. Full Budget:
Understanding the nuances between interim and full budgets clarifies the expectations for significant policy changes and tax reforms post-election.
Budget 2023 Recap:
Looking back at Budget 2023 reveals a focus on inclusive development, a thriving economy, and strategic allocations for key sectors.
Expectations for Budget 2024:
Key expectations include Anticipated relaxation in ESOP taxation, increased home loan interest limits, and the inclusion of healthcare expenses in the new tax regime.
Indirect Tax Front:
Envisaging options for revising GST returns and extending e-invoicing for B2C transactions highlights the government's ongoing efforts to streamline indirect taxes.
Conclusion:
The interim budget for 2024 sets the stage for India's immediate fiscal direction, with an eye on inclusive growth, sustainable development, and strategic allocations. While the budget might not be revolutionary, it offers a roadmap for economic stability and progress until the entire budget unfolds post-election. Stay tuned for the next chapter in India's economic narrative!
