top highlights of union budget

Top 21 Budget Highlights of the Indian Union Budget 2024-25

March 28, 2024 • 510 views

The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, focused on boosting economic growth, infrastructure development, and social welfare. While it was an interim budget presented before the general elections, it offered several key takeaways for individuals and businesses. This blog discusses about the top 21 budget highlights and their potential impact. Keep reading! 

Full Budget vs Interim Budget

Before we discuss the most important budget highlights of the Union Budget 2024. understand the essential differences between a full budget and an interim budget. A full budget covers the finances for a complete fiscal year. On the other hand, interim budget is presented in an election year showcasing all expenses and revenue for a short span.

The Finance Minister presents the interim budget similarly to the full budget, but it is valid until the general election and the formation of a new government. You can think of it as a short-term financial plan for the country that mostly sheds light on the regular expenses and other ongoing programs. This explains why major policy changes or tax reforms are usually off the table.

Top 21 Budget Highlights (2024)

Following are the 21 most important highlights of the Budget 2024:

Budget and the Economy

  1. The government aims to reduce the fiscal deficit to 5.1% of GDP, indicating a commitment to fiscal consolidation. This is positive for long-term economic stability.
  2. Increased focus on infrastructure spending with a record Rs. 11.1Lakh Crore allocation. This bodes well for infrastructure-related businesses to invest in real estate ventures.
  3. The budget projects an ambitious GDP growth rate of 10.5%, signalling optimism for the overall economy. This could translate into increased demand for financial services, potentially benefiting various banks and NBFCs.

Budget and Income Tax

  1. While there were no changes to income tax slabs, the government extended tax exemptions for start-ups until March 2025. This remains beneficial for young businesses seeking financial support.
  2. Outstanding tax demands up to Rs. 25,000 for previous years will be waived off, providing relief to taxpayers and potentially increasing tax compliance.
  3. Encouragement of digital payments through tax incentives could benefit the digital financial services arm.

Budget and Indirect Taxes

  1. The rationalisation of customs duties on certain items could impact import costs for businesses. You should closely examine these changes for potential implications.
  2. Increased allocation for renewable energy projects presents opportunities for companies involved in green financing, potentially opening doors for exploring new avenues.
  3. In 2013-14, the processing time of tax returns was 93 days; in 2023-24 it has been reduced to 10 days.
  4. Interest-free loans to states for tourism promotion could lead to increased travel spending, positively impacting related sectors like hospitality and travel financing.

Budget and Senior Citizens

  1. The limit for the Senior Citizen Savings Scheme has been raised, providing better investment options for retirees. This could attract senior investors to invest in senior-focused financial products.
  2. Increased deductions for medical expenses incurred by senior citizens could ease their financial burden and potentially increase demand for health insurance products.

Budget and Youth

  1. Increased focus on skill development programs could benefit young job seekers and create a more skilled workforce, improving the talent pool for companies.
  2. Continued subsidies on education loans could make higher education more accessible, potentially leading to increased demand for financial products tailored for students.
  3. The government's push for affordable housing schemes could benefit young homebuyers and create opportunities in mortgage financing.

Budget and the Future

  1. The government's focus on digitalisation across various sectors could propel India towards a more tech-driven economy, opening doors for FinTech companies to play a crucial role.
  2. The budget highlights the government's commitment to sustainable development, which could create opportunities for companies offering green financing solutions.
  3. Supporting start-ups and MSMEs could foster innovation and entrepreneurship, potentially creating new business partnerships.

Budget and Sustainable Development

  1. The government will initially fund the viability gap to harness offshore wind energy for one giga-watt.
  2. A blending of PNG, CNG, and other compressed gas for domestic cylinders has been made compulsory.
  3. Under the Street Lighting National Program (SNLP), the government will install 1.3 Crore LED streetlamps throughout India.

Also Read - Importance and Impact of Yearly Union Budget

What’s Cheaper and What’s Expensive – At a Glance

Since the 2024 budget was an interim budget before the Lok Sabha Election, here are some of the most important fluctuations in the prices of goods in the budget 2024 highlights:

  • Expensive: Electric chimney, imitation jewellery, copper scrap, air travel, bicycles, Cigarettes, and textiles.
  • Cheaper:  Shrimp feed, smartphones, TVs, lab-made diamonds, compressed gas, and electric vehicles lithium-ion cells manufacturing machinery.

Also Read - How is the Union Budget Prepared?

To Conclude

The Union Budget 2024-25 offers a mixed bag for individuals and businesses. While there are no major game-changers, the emphasis on infrastructure, digitalisation, and social welfare presents potential growth opportunities. By carefully analysing the budget highlights and specific details and aligning its strategies accordingly, you can leverage these opportunities to navigate the economic landscape and achieve your financial goals.

Disclaimer

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Poonawalla Fincorp Team

Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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