Interim Budget Highlights - 2024

While not a full roadmap, the Interim Budget 2024 offers a glimpse into India's current economic state and priorities, serving as a stepping stone for the post-election government to build upon. Let's explore its key highlights to see where India's future might be headed.

Taxation:

• Individuals and Companies: No changes to income tax slabs or rates for either individuals or companies, providing stability for taxpayers.

• Startups and Investment Incentives: Extension of existing tax benefits for startups and select investments until March 2025, encouraging entrepreneurship and capital infusion.

• Direct Tax Demand withdrawn:

Upto F.Y 2009-10: ₹25,000/-

F.Y 2010-11 to 2014-15: ₹10,000/-

Key Initiatives:

• PM Janman Yojana: Focused program aimed at addressing development needs of marginalized tribal communities.

• Free Electricity through Rooftop Solar: Scheme offering 1 crore households 300 units of free electricity per month via rooftop solar power installation, promoting clean energy and reducing electricity bills.

• Affordable Housing Schemes: New program facilitating homeownership for middle-class individuals, coupled with the construction of 2 crore additional rural houses through PMAY-Gramin, supporting housing accessibility and infrastructure development.

• Defense Technology Modernization: Introduction of a new deep-tech program, enhancing India's defense capabilities through advanced technological applications.

• Expansion of Higher Education: Establishment of additional IITs, IIITs, IIMs, AIIMS, and universities, increasing access to quality education and fostering skilled workforce development.

• Electric Vehicle Charging Infrastructure: Creation of opportunities for entrepreneurs, suppliers, and skilled individuals by promoting the development of electric vehicle charging infrastructure.

• Boosting R&D: Establishment of a ₹1 lakh crore fund to support private sector research in crucial areas like AI, robotics, and biotechnology, driving innovation and future economic growth.

Economic Indicators:

• Revised Budget Deficit: Slight decrease in the revised budget deficit for FY 24 to 5.8%, indicating progress towards fiscal consolidation.

• Focus on Sustainability and Job Creation: Initiatives such as rooftop solarization, electric vehicle infrastructure, and R&D funding demonstrate a commitment to clean energy, sustainable development, and job creation in emerging sectors.

What has remained the same?

• Income tax slabs and rates: Both for individuals and companies, the existing tax slabs and rates remain unchanged. This provides stability and predictability for taxpayers.

The budget presented a balanced perspective, offering tax stability while focusing on targeted initiatives to uplift underserved communities, promote affordable housing, modernize defense capabilities, enhance education access, and support future-oriented research and development. These measures aim to foster inclusive and sustainable growth for India

Let us know in the comments your views or doubts in the comments below.