Union Budget 2024: 10 Key Highlights

Introduction

10 Key Highlights :Union Budget 2024, presented by the Finance Minister, outlines the government’s vision for economic growth and development in the coming fiscal year. This budget emphasizes infrastructure development, social welfare, digital transformation, and sustainable growth. Here are the ten key highlights of the Union Budget 2024, detailing the government’s initiatives and their expected impact.

1. Massive Boost to Infrastructure Development

The government has allocated ₹10 lakh crore for infrastructure development, marking a significant increase aimed at modernizing India’s infrastructure landscape. This funding will focus on:

• Highways and Roadways: Expansion and maintenance of national highways and rural roads to improve connectivity.
• Urban Infrastructure: Development of smart cities, urban transport systems, and sustainable urban housing projects.
• Rural Infrastructure: Investment in rural electrification, irrigation projects, and water supply systems to enhance rural development.

Impact: These initiatives are expected to create numerous job opportunities, enhance connectivity, reduce transportation costs, and drive economic growth across urban and rural areas.

2. Enhanced Education and Skilling Initiatives

A substantial allocation of ₹1.48 lakh crore has been earmarked for education, jobs, and skilling. The government’s focus includes:

• Educational Infrastructure: Upgrading and building new schools, colleges, and universities, particularly in underserved areas.
• Digital Learning: Expanding access to online education platforms and providing digital devices to students.
• Teacher Training: Enhancing the professional development of educators to improve teaching quality.
• Skill Development: Launching new skill development programs and expanding existing ones to equip the workforce with modern skills.

Impact: These measures will improve the quality of education, bridge the digital divide, and prepare a skilled workforce for the future job market.

3. Significant Healthcare Sector Boost

The healthcare sector received an allocation of ₹2.2 lakh crore, focusing on:

• Healthcare Infrastructure: Building new hospitals and upgrading existing facilities, particularly in rural and remote areas.
• National Health Mission: Enhancing the scope and reach of this mission to ensure comprehensive healthcare coverage.
• Ayushman Bharat Scheme: Increasing funding to provide health insurance coverage to more beneficiaries.

Impact: These initiatives aim to improve access to quality healthcare, reduce the healthcare burden on individuals, and promote overall public health.

4. Support for Agriculture and Rural Development

To strengthen the agriculture sector and rural economy, the budget has allocated ₹3.6 lakh crore. Key initiatives include:

• Irrigation Projects: Expanding irrigation facilities to ensure water availability for farming.
• Crop Insurance: Enhancing the Pradhan Mantri Fasal Bima Yojana to provide better coverage and faster claim settlements.
• Rural Infrastructure: Investing in rural roads, electrification, and storage facilities.

Impact: These measures are expected to boost agricultural productivity, improve farmers’ income, and enhance the quality of life in rural areas.

5. Tax Reliefs and Simplification

The budget has introduced several tax relief measures and simplifications:

• Personal Income Tax: Revision of tax slabs and increased exemption limits to provide relief to taxpayers.
• Corporate Tax: Reduction in the corporate tax rate for small businesses to 15%.
• GST Simplification: Streamlined GST filing processes and reduced compliance burden for small businesses.

Impact: These changes are aimed at increasing disposable income, encouraging investment, and simplifying the tax compliance process for individuals and businesses.

6. Promotion of Digital Economy and Fintech

Recognizing the importance of digital transformation, the budget includes significant support for the digital economy:

• Digital Payments: Incentives for adopting digital payment systems and expanding digital infrastructure.
• Fintech Innovations: Funding for fintech startups and development of digital financial services.
• Cybersecurity: Investments in strengthening cybersecurity frameworks to protect digital transactions.

Impact: These initiatives will promote financial inclusion, enhance the efficiency of financial transactions, and support the growth of the digital economy.

7. Focus on Renewable Energy and Sustainability

The budget has allocated ₹1.2 lakh crore for renewable energy projects and sustainability initiatives:

• Solar and Wind Energy: Expanding solar and wind energy projects to increase the share of renewables in the energy mix.
• Electric Vehicles (EVs): Incentives for EV manufacturing and adoption, and investment in charging infrastructure.
• Climate Action: Funding for projects aimed at reducing carbon emissions and promoting sustainable practices.

Impact: These measures will help India transition to a cleaner energy future, reduce dependency on fossil fuels, and combat climate change.

8. Support for Startups and MSMEs

To foster innovation and support small businesses, the budget includes several initiatives:

• Credit Support: Enhanced funding for the Credit Guarantee Scheme and easier access to credit for MSMEs.
• Tax Incentives: Tax reliefs for startups and MSMEs to encourage entrepreneurship.
• Infrastructure Support: Development of MSME clusters and business parks.

Impact: These measures will boost the startup ecosystem, support small business growth, and drive innovation across sectors.

9. Public Sector Reforms

The budget has outlined reforms aimed at improving the efficiency and effectiveness of the public sector:

• Disinvestment: Strategic disinvestment in public sector enterprises to improve their efficiency.
• Public Sector Modernization: Investment in technology and process improvements for public sector organizations.
• Transparency and Accountability: Measures to enhance transparency and reduce corruption in public sector operations.

Impact: These reforms will lead to a more efficient and competitive public sector, better utilization of public resources, and improved service delivery.

10. Enhanced Social Welfare Programs

The budget has significantly increased funding for social welfare programs aimed at supporting vulnerable sections of society:

• Affordable Housing: Increased allocation for affordable housing projects under the Pradhan Mantri Awas Yojana.
• Women and Child Development: Enhanced funding for programs focused on nutrition, healthcare, and education for women and children.
• Social Security: Expansion of social security schemes for senior citizens and differently-abled individuals.

Impact: These initiatives will improve the quality of life for marginalized communities, ensure inclusive growth, and reduce socio-economic disparities.