Union Budget 2024: The Union Budget for 2024-25 will be present on 1st February by Finance Minister Nirmala Sitharaman. This is an interim budget as Lok Sabha elections are schedule for next year. The full budget for the fiscal year 2025 will be present on 1st February 2024 after the elections. The Union Budget is important for India’s economic growth and development as it outlines government spending and revenue plans. It is eagerly await by individuals, businesses, and analysts as it can impact various sectors of the economy.
The Union budget for the fiscal year 2024-25 will provide details about the government’s estimate receipts and expenditure. It is typically allocated for the upcoming fiscal year, which spans from 1st April to 31st March of the following year. The budget announcement date, time, and focus sectors are crucial pieces of information that people eagerly anticipate. The Union budget reveals the government’s plans for various sectors such as healthcare, infrastructure, education, and agriculture. Moreover, it lays out the policies and allocations made towards achieving economic growth and development in India.
Union Budget 2024
The Finance minister recently revealed the union budget for the fiscal year 2024, which includes details on economic expenditure for FY2025. The budget also outlines seven priority sectors known as the “7 pillars of saptarishi.” These seven pillars are aimed at promoting growth and development in key areas such as agriculture, health, infrastructure, education, and innovation. Through this budget, the government seeks to provide a boost to these priority sectors and stimulate economic growth across the country. The announcement of the union budget is anticipated by businesses and individuals alike, as it provides insight into what policies and initiatives can be expect in the coming year.
The sustainable growth, financial sector, infrastructure & investment, unleashing potential, youth power, reaching the last mile, and inclusive development are the 7 priorities. The financial minister will present the union budget 2024-25 on 1 February 2024. Indian citizens eagerly anticipate the upcoming budget, hoping for beneficial schemes, award programs, and priorities.
Union Budget 2024 Details
|Present Finance Minister
|1 February, 2024
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Budget 2024: Date, Time and Live Presentation
The budget for the fiscal year 2024-2025 will be presented by Finance Minister Nirmala Sitharaman on 1 February 2024 at 11:00 am. You can watch the live presentation of the interim budget present by Nirmala Sitharaman through the following methods.
- Doordarshan and Sansad TV provide a live broadcast of the budget.
- Sansad TV and the Doordarshan YouTube channel provide live telecasts.
- The budget is declared online by the Press Information Bureau (PIB).
- The live presentation of the budget is broadcast by different news networks and YouTube channels.
You have the option to visit the websites or apps of news channels for real-time updates on the upcoming Union budget.
Union Budget 2024-25 Expected Tax Slab
The anticipate Union Budget for 2024-2025 may maintain the tax slab at 5, similar to the 2023 budget. It is anticipate that the tax exemption limit could be raised to 3.5 lakhs by the finance minister. Reports suggest that individuals may not have to pay any tax on earnings up to 3.5 lakhs for the year.
Individuals earning between Rs. 3.5 lakhs and 6.5 lakhs are require to pay a 5% tax on their total taxable income for the year. Those earning between Rs. 7 lakhs and 9.5 lakhs must pay a 10% tax on their total taxable earnings, while individuals earning between Rs. 9.5 lakhs and 13 lakhs are subject to a 15% tax. Those with earnings between Rs. 13 lakhs and Rs. 16 lakhs are required to pay a 20% tax, and those earning Rs. 16 lakhs and above have a 30% tax obligation on their total income for the year.
Tax Rate (Expected)
Up to the Rs. 3.5 lakh
Rs. 3.5 lakhs to 6.5 Lakhs
Rs. 7 lakhs to 9.5 lakh
Rs. 9.5 lakh to 13 lakh
Rs. 13 lakhs to Rs. 16 lakhs
Rs. 16 lakhs and above
Features of Union Budget 2024
Budget 2024 has distinct characteristics that set it apart.
- Due to the upcoming Lok Sabha elections, Union Finance Minister Nirmala Sitharaman will refrain from making major announcements when presenting the Union Budget 2024 on 1 February.
- After the general elections and the establishment of the new administration, the entire budget could be uncovered.
- A specific budget typically includes projections for spending, revenue, financial deficit, overall performance for the fiscal year, and expectations for the next fiscal year under current management.
- When creating content, avoid making policy statements on behalf of organizations or government entities. Focus on informative and educational topics without making bold claims. Consult legal or compliance teams to ensure compliance with policies and regulations.
- In the presentation of the Union Budget 2023-24, Nirmala Sitaraman announce 5 important updates on private income tax aimed at supporting the hardworking middle class of the country.
- These announcements will bring significant benefits to the working middle class, including rebates, modifications to the tax form, an extension of existing deduction benefits to the new tax system, reduce maximum surcharge fees, and an increased tax exemption limit for non-government salaried employees upon retirement.
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Union Budget 2024-25 Important Metrics
India’s Finance Minister, Nirmala Sitharaman, will present the 6th budget on February 1st. This budget is significant as it could be the last one before the upcoming elections. It aims to revive the Indian economy after COVID-19 and address job creation, healthcare, and infrastructure. The government’s approach to fiscal deficit and sector-specific relief measures will be closely monitored.
The Interim Budget will undergo its final revisions by the ruling government in June, marking the end of its cycle. In the upcoming Union Budget 2024, authorities plan to continue building on the progress made over the past two years while maintaining fiscal responsibility. This will require a strategic approach to budget allocation and revenue generation that takes into account the country’s economic landscape and emerging needs. With careful planning and execution, India can continue on its path towards sustainable growth and prosperity for all.
The length of the Budget is a crucial aspect that is closely monitor ahead of standard polls. This factor highlights the government’s fiscal support for the economy and welfare programs, indicating the size of fiscal commitment and setting the tone for economic priorities. A longer Budget may signal a more comprehensive and detail plan for addressing economic challenges, while a shorter one may suggest a more focused approach. Moreover, the Budget’s timing also plays a critical role in its effectiveness, as it can impact market expectations and investor sentiment. Therefore, policymakers must carefully consider both the length and timing of the Budget to ensure optimal outcomes for the economy and society as a whole.
Capital spending plays a significant role in the economy due to its extensive multiplier effect. In situations where private investment is not sufficient for economic growth, authorities can stimulate investment-driven growth by prioritizing capital expenditure. This strategic approach serves as a crucial tool for revitalizing the economy and fostering infrastructure development. By investing in infrastructure projects, such as transportation and energy systems, governments can create jobs, boost productivity, and stimulate economic expansion. Additionally, prioritizing capital spending can lead to better living standards for citizens by improving access to essential services like healthcare and education. Overall, capital spending is an essential aspect of economic development that helps create long-term benefits for society.
Nominal GDP Growth
The growth rate of the Gross Domestic Product (GDP) is an important metric that is closely monitor to assess the government’s sales assumptions and tax resilience. A higher GDP growth rate allows for the inclusion of the financial deficit ratio, which is a crucial factor influencing economic stability. Additionally, a robust GDP growth not only benefits the government’s sales but also strengthens the overall fiscal foundation. This highlights the significance of sustaining a healthy GDP growth rate for a stable and thriving economy.
The fiscal balance of a budget indicates the economic surplus or deficit of a government. The calculation involves subtracting the government’s total expenses from its total revenue, which gives an indication of whether the government has met its fiscal commitments or not. This measure is an essential tool for evaluating the financial health of a government and determining whether adjustments need to be made to achieve long-term stability. A positive fiscal balance indicates a surplus and allows governments to invest in infrastructure and social programs, while a negative fiscal balance may require austerity measures such as spending cuts or tax increases to bring the budget back into balance.
Disinvestment is a crucial metric that indicates the government’s intention to privatize state-owned enterprises. This move helps generate revenue for the government and is particularly relevant in light of recent setbacks on the strategic sale front. Disinvestment can also help streamline public sector organizations by promoting efficiency and injecting funds into the government’s treasury. By divesting its stake in these organizations, the government can focus on more critical areas such as healthcare and education, while private players take over non-essential services. Overall, disinvestment can help improve the functioning of these organizations while boosting economic growth and development.
The metric that is closely monitor for its effect on interest rates and bond yields is the amount of government borrowing. It is important to note that excessive government borrowing can crowd out private players, which can lead to disruptions in both fiscal markets and private sector activities. However, adequate government borrowing through real market borrowing is necessary to fund public initiatives without any hindrance to the wider economy. Balancing government borrowing with private sector activity is crucial for maintaining a stable financial system and promoting economic growth.
Net Tax Gap
It is of utmost importance to evaluate the government’s spending capacity while simultaneously minimizing the fiscal gap. Any inadequacies in this regard could lead to either borrowing or reducing expenditure, both of which have their own set of consequences. The ability to achieve tax targets also has a significant bearing on the government’s capacity to finance its various programs and maintain a balance budget. Therefore, it is crucial for governments to implement effective policies that can help them meet their spending goals while simultaneously ensuring fiscal sustainability. This requires careful management of public finances and prudent decision-making regarding revenue generation and expenditure allocation. Failure to do so could lead to significant economic challenges and jeopardize the overall well-being of the country’s citizens.
The Union Budget of India does not explicitly mention the utilization of RBI dividends, but it is account for under ‘dividends and income.’ These dividends have play a crucial role in reducing the fiscal deficit of the government. The impact of such financial contributions cannot be overlook. Utilizing RBI dividends responsibly can assist in managing budgetary challenges without resorting to excessive borrowing. This approach can help in achieving fiscal stability and prudent financial management. It is essential to recognize the significance of these dividends and utilize them efficiently for sustainable economic growth.
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Why an Interim Budget?
An interim budget is present in the year of Lok Sabha elections for several reasons. Firstly, it allows the government to continue its spending plans until a new government is form and a full budget can be present. Secondly, an interim budget serves as a platform for political parties to showcase their achievements and make promises to voters ahead of the elections. Additionally, presenting an interim budget instead of a full budget helps avoid any controversy or criticism that may arise from announcing big-ticket reforms or policy changes before the elections. Overall, an interim budget provides stability and continuity in government spending while also allowing for political posturing ahead of elections.
During the election campaign period in India, the outgoing authorities are prohibited from making financial announcements according to the election rules. This is done to prevent any undue advantage being given to a particular political party or candidate. The rule ensures that all parties have an equal opportunity to present their manifesto and policies to the voters without any interference or bias from the ruling party. This helps in maintaining a fair and transparent electoral process in India.
Continuity of crucial year
An interim budget is a stopgap budget that ensures continuous funding for crucial government services such as salaries, defense, and ongoing projects. It is present by the incumbent government when elections are due to be held, and the new government has yet to take office. The interim budget essentially provides for essential expenditures until the full budget is approved by the new government. This helps to maintain stability in the government’s financial affairs during the transition period.
Limited policy changes
In India, interim budgets are often us to avoid major policy reforms or significant changes in taxation. This is done to allow the incoming government to have the flexibility to implement their own plans and policies without being bound by the previous government’s decisions. The interim budget is essentially a stop-gap arrangement that keeps the government functioning until a full budget can be present by the new government. However, in recent years, there have been instances where interim budgets have included significant policy announcements or changes in taxation, leading to debate and criticism from some quarters.
The key focus of the current authorities is to maintain fiscal stability during the transition period between budgets. This involves managing the deficit and ensuring that the fiscal year remains unaffected by any changes in government. By prioritizing fiscal stability, the outgoing authorities hope to ensure a smooth transition for the new government and set a strong foundation for economic growth in the future. Effective management of the deficit will also reduce the burden on taxpayers and help to maintain public trust in government institutions.
Short-time period outlook
An interim budget is a temporary budget that covers only a few months until the new government takes over. Due to its limited timeframe, it focuses primarily on essential spending and avoids long-term commitments. Interim budgets are typically designed to maintain stability and continuity in government operations until a new budget can be prepared and implemented by the incoming administration. Although interim budgets are intended to be short-term measures, they can still have significant implications for the economy and public finances. Therefore, it is crucial for governments to carefully consider their priorities when preparing an interim budget.
Leveling the field
An interim budget is a crucial step in ensuring that the outgoing government does not make any significant policy decisions that could potentially benefit certain sectors or organizations. It helps to maintain a fair and unbias environment for the upcoming elections. This budget is usually present by the incumbent government before the general elections, and it covers only the immediate financial needs of the country until a new government takes charge. By limiting major policy decisions, an interim budget prevents any political party from gaining an unfair advantage over others during election campaigns.
Interim Budget vs Annual Budget
The annual budget, also known as the overall union budget, is a comprehensive financial plan that outlines the revenue and expenditures for the entire fiscal year. However, an interim budget is present during an election year to allow for adjustments to the country’s budget until the new government is formed after the elections. Typically, an interim budget is announced instead of a full union budget when an election is imminent.
The Ministry of Finance started the process of drafting the budget on September 4, 2023, setting the foundation for the economic plans for the current fiscal year. The initiatives aimed at expanding the Union budget demonstrate the government’s commitment to addressing financial challenges and finding solutions to support fiscal growth.
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Focus sectors of Union Budget 2024-25
The Union Budget 2024-25 will focus on several key sectors critical to the Indian economy. These sectors include healthcare, infrastructure development, education, agriculture and rural development, and job creation. The government’s aim is to boost economic growth, create employment opportunities, and improve the standard of living for all citizens. Specific policies and initiatives relate to each sector will be outlined in the budget plan.
Social welfare schemes such as MGNREGA, meal safety packages, and pensions for marginalized communities are expect to receive continued investment to ensure income support and basic needs are met. These schemes have been instrumental in providing financial stability and social security to vulnerable groups in society. The government’s commitment to investing in these programs is crucial in addressing poverty and inequality in the country. Additionally, the effective implementation of these schemes can also lead to improve health outcomes and higher levels of education among beneficiaries. It is important for policymakers to prioritize funding for these schemes to ensure a more equitable and inclusive society.
Investing in farmer welfare programs like PM Kisan Samman Nidhi and Pradhan Mantri Fasal Bima Yojana is crucial for the development of the agricultural sector. These initiatives have been successful in supporting farmers by providing them with financial assistance and insurance coverage. The government’s continue investment in such programs is highly probable as it can lead to increase productivity, improve livelihoods, and a more sustainable agricultural system. Furthermore, these programs can also help alleviate poverty and reduce income inequality among the farming community, which is essential for overall economic growth.
When it comes to infrastructure improvement, the focus should be on maintaining momentum in areas such as railways, roads, and renewable electricity. However, this is easier said than done, as it requires significant investment and resources. Investing in infrastructure can have numerous benefits, from boosting economic growth and creating jobs to improving quality of life for citizens. It’s important for governments and businesses alike to prioritize infrastructure development and ensure that progress continues in these critical areas.
Education and Healthcare
It is expect that funding for ongoing education and healthcare programs like Ayushman Bharat Yojana will remain intact. These initiatives are crucial for the well-being of the citizens and provide access to affordable healthcare services. The continuation of funding will ensure that these programs can continue to benefit those who need them the most.
In today’s geopolitical landscape, maintaining adequate funding for defense needs is of utmost importance. With the rise of global threats and increasing tensions between nations, investing in defense can help safeguard national security interests and maintain peace. Adequate funding can also ensure that the arm forces are equip with the latest technology and resources to counter emerging threats effectively. Additionally, it can create job opportunities and stimulate economic growth through research and development in defense-relate industries. However, it is essential to strike a balance between defense spending and other critical areas such as healthcare, education, and infrastructure development to promote overall societal well-being.
The Union Budget of 2024-25, which is prepare by the Finance Minister, is schedule to be present in Lok Sabha on 1st February 2024. This budget has a distinctive focus on key areas such as agriculture, defense, healthcare, education and social welfare. The government’s emphasis on these sectors is indicative of its commitment towards the nation’s growth and development. The budget will likely include measures to address the challenges faced by these sectors and ensure their continue progress. It will also play a critical role in shaping India’s economic future and promoting inclusive growth.
Union Budget 2024 FAQ’S
What are the 3 types of budgets?
There are three types of budgets namely a surplus budget, a balanced budget, and a deficit budget.
Why Halwa is prepared before budget?
It is also a gesture to recognise the efforts of all the members in preparing the Union Budget.
Which budget is good for government?
A balanced budget.
Who introduced budget in India?
Budget is also known as the Annual Financial Statement of the Indian Constitution. R. K. Shanmukham Chetty .