The Union Budget 2024-25: Impact On The Common Man

On Thursday, February 1, 2024, the honourable Finance Minister, Mrs. Nirmala Sitharaman, released the interim budget for the year 2024-25. An interim budget is a crucial financial document presented in an election year, covering government expenditures and revenues until a new government is elected. It acts as a bridge, outlining fiscal plans until a full-fledged budget is presented by the new government. The Union Budget, on the other hand, is an annual statement detailing the government's estimated receipts and expenditures for the fiscal year, running from April 1st to March 31st. In 2024, Finance Minister Mrs. Nirmala Sitharaman released the interim India budget 2024-25, with the final budget to be presented by the new government post-Lok Sabha elections.

Key Highlights Of Union Budget 2024-25

Let’s look at the key highlights of budget 2024-25:

• The government is working towards making India 'Viksit Bharat' by 2047, with a focus on 'Sabka Sath, Sabka Vikas.'
• Focus on four major castes: poor, women, youth, and farmers.
• The government's focus is on poverty eradication, with 25 crore people lifted out of poverty in the last 10 years.
• Emphasis on comprehensive 'governance, development, performance' (GDP) and the impact of Goods and Service Tax (GST) on 'one nation, one market, one tax.'
• Establishment of an INR 1 lakh crore corpus with a 50-year interest-free loan to provide long-term financing with minimal or no interest rates.
• FDI now stands for 'First Develop India,' with bilateral trade treaties encouraged to boost FDIs.
• FY25 gross market borrowing is estimated at INR 14.13 lakh crore.
• FY25 fiscal deficit projected at 5.1%, aiming to reduce it below 4.5% by FY26.
• FY24 tax receipts are estimated at INR 23.24 lakh crore.
• FY24 fiscal deficit is seen at 5.8% of GDP, with total expenditure revised to INR 44.90 lakh crore and total receipts (other than borrowings) at INR 27.56 lakh crore.
• Tax benefits for startups, with investments by sovereign wealth and pension funds extended to March 2025.
• Withdrawal of outstanding direct tax demands up to INR 25,000 for the period up to the financial year 2009-10 and up to INR 10,000 for the financial years 2010-11 to 2014-15, benefiting a crore taxpayers.
• The government aims for 2 crore more houses in five years under the PM Awas Yojana.
• 40,000 normal rail bogies will be converted to Vande Bharat standards.
• A new scheme for strengthening deep-tech technologies for defence purposes.
• Capital expenditure increased by 11.1% to over INR 11.18 lakh crore, or 3.4% of GDP.

Must Read: Key Takeaways For Salaried Individuals From Union Budget 2023

What Does The Interim Budget Mean For You?

The Union Budget 2024-25 brings a host of implications for the common man, catering to diverse segments of the population:

For Salaried Individuals

Salaried individuals stand to benefit from the withdrawal of outstanding direct tax demands, offering immediate relief for amounts up to INR 25,000 for specified periods. The focus on reducing fiscal deficits contributes to economic stability, potentially leading to a positive impact on job security and overall financial well-being.

For Self-Employed Individuals

The budget encourages entrepreneurship by extending tax benefits for startups and providing an extension for investment deadlines. Self-employed individuals can leverage these measures to fuel their ventures, fostering innovation and growth. Access to credit facilities tailored for self-employed professionals can further support their business aspirations.

For Women

The budget acknowledges the crucial role women play in the economy and society. It introduces initiatives supporting women's financial independence, potentially leading to increased employment opportunities and entrepreneurship. Tax benefits and schemes specifically tailored for women may provide them with a more robust financial foundation.

For Farmers

The budget underscores a commitment to the welfare of farmers by promoting agricultural schemes and initiatives. This includes ensuring access to credit, modernizing infrastructure, and introducing technologies to enhance agricultural productivity. These measures aim to alleviate the challenges faced by farmers, ensuring a more sustainable and prosperous future for the agricultural community.

For Youth

The focus on overall economic development creates a conducive environment for the youth. Initiatives aimed at skill development and employment generation provide avenues for young individuals to enhance their capabilities and contribute to the workforce. The budget's commitment to reducing fiscal deficits and promoting foreign direct investment signals stability, potentially leading to increased job opportunities and career growth for youth.

Must Read: Key Highlights of Central Budget 2020 in All Sectors

Conclusion

The Union Interim Budget 2024-25 not only sets the tone for comprehensive economic development and inclusive growth but also presents promising opportunities for individuals, both salaried and self-employed. 

Against this backdrop, financial institutions like SMFG India Credit are poised to play a pivotal role in supporting the aspirations and financial needs of the workforce. With competitive interest rates, flexible repayment terms, and a 100% online application process, you can now apply for a personal loan seamlessly to achieve your financial dreams.