Union Budget 2024-25

Current Context : Recently, Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 in the Lok Sabha.

• Budget is presented as per Article 112 of the Constitution, formally known as ‘Annual Financial Statement’.
• The Budget focused on provisioning for the agricultural sector, the introduction of schemes related to employment, loan schemes, announcements for financial support to the MSME sector, infrastructural development, and fiscal deficit projection at 4.9% with a commitment to reducing it down to 4.5%.

KEY HIGHLIGHTS

• Announcement of Prime Minister’s package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 Cr youth over a 5-year period with a central outlay of INR 2 Lakh Cr.
• Rationalization of Custom Duties on various sectors to support domestic manufacturing, deepen local value addition, promote export competitiveness, and simplify taxation.
• Revision of tax rate structure under new tax regime.
• TDS rate reduced on some payments and e-commerce operators.
• Short term gains and Long term gains on financial assets to attract a tax rate of 20% and 12.5%, respectively.
• Development of investment-ready plug-and-play industrial parks with complete infrastructure in or near 100 cities.
• Vivad Se Vishwas Scheme, 2024 proposed for resolution of income tax disputes.
• Corporate tax rate on foreign companies reduced from 40 to 35 %
• Shram Suvidha and Samadhan portals will be revamped to enhance ease of compliance for industry and trade.
• Anusandhan National Research Fund for basic research and prototype development to be operationalised.