Vikas Khemani : Praises Growth-Oriented Budget 2024 Focus for Targeted Sector
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Major Features of the 2024-25 Union Budget: Focusing on Promoting Economic Growth
The current government has focused on long-term programs and benefits across several industries, and the Union Budget 2024 is balanced. The government provided a clear plan for “Viksit Bharat” by focusing on important issues including urban infrastructure development, youth skill development, manufacturing promotion, agriculture reforms, and employment creation.
Its finances efficiency is one of the budget’s noteworthy features. The current year’s fiscal deficit is kept at 4.9%, with the goal of bringing it down to 4.5% the next year. In order to preserve fiscal stability, this balanced fiscal strategy makes sure that resources are allocated effectively to the appropriate areas. Such stability is likely to draw liquidity flows into the nation, lowering India’s cost of capital and creating a favorable climate for economic growth.
The budget has allocated Rs 11.11 lakh crore for infrastructure capital spending, which accounts for 3.4% of GDP. This significant contribution underlines the government’s commitment to infrastructure development and industry growth. The emphasis on infrastructure development is likely to have a knock-on effect, boosting economic activity and creating job opportunities across a variety of industries. The budget’s emphasis on supporting MSMEs is significant. Credit guarantees for MSME loans up to 100 crores and Mudra Loans are intended to boost the growth of small and medium-sized businesses. These initiatives will give MSMEs with the financial resources they need to expand their operations, innovate, and make substantial contributions to the economy.
Another ideal development is the lowering of customs charges on mobile phones, gold, and silver. It will also make consumer gadgets and jewelry more cheap, therefore increasing spending. Salaried employees would profit from the new tax system, potentially saving up to Rs 17,500 in income tax. This respite is projected to increase small-ticket spending since people would have more discretionary cash to spend on products and services. Increased consumption will increase demand, hence supporting economic development. The end of the angel tax is a key step toward creating a strong startup culture in India. By reducing this tax, the government wants to encourage investment in new businesses, so developing a culture of creativity. This move is intended to bring more investors into the startup ecosystem, giving the funding required for new enterprises to expand and grow.
The government’s commitment to improving society is demonstrated by its commitment to spend Rs 3 lakh crore on projects for women and girls. Increasing women’s involvement in the labor is a goal, and these programs are intended to empower women by providing them with the skills and opportunities they require to contribute to the economy.
Students enrolled in any study at domestic universities can apply for education loans from the government up to a maximum of 10 lakh rupees. This program will increase talent generation in the nation and make higher education more accessible. Students also receive an electronic voucher with a 3% interest subvention, which lowers the total cost of their loans.
