Union Budget 2024-25 for Inclusive Growth and Sustainable Development
Welcome to Startupportal’s blog, today we are going to explore the most important subject i.e. Union Budget 2024- 25, in the rearmost budget announcement, India’s Finance Minister Nirmala Sitharaman has unveiled a strategic roadmap for the fiscal year 2024- 25, outlining crucial initiatives across taxation, infrastructure development, green energy, investment promotion, housing, MSME empowerment, and agriculture support. This comprehensive overview delves into the vital aspects of the budget, slipping light on the government’s forward- thinking approach to foster profitable growth and inclusivity.
Taxation:
The Finance Minister has declared that there will be no differences in the income tax rates for direct taxes in the financial year 2024- 25. individualities earning up toRs. 7 lakh will be pure from tax liability under the new tax governance. Commercial taxes will remain steady at a rate of 22 for existing domestic companies, while certain new manufacturing companies will benefit from a reduced commercial tax rate of 15. Over the once decade, direct tax collections have further than tripled, and the number of return filers has surged by 2.4 times. The average processing time for tax returns has significantly dropped from 93 days in 2013- 14 to just 10 days in 2023- 24.
In addition, the Finance Minister has put forth a proposal to extend the time limit for specific tax benefits for start- ups and investments made by autonomous wealth finances and pension finances. Furthermore, the tax impunity for designated IFSC( International Financial Services Centre) units, originally set to expire on March 31, 2024, has been dragged until March 31, 2025.
Infrastructure Development:
Over the last four years, infrastructure spending tripled, boosting the economy and creating jobs. The Finance Minister plans an 11.1% increase next year, allocating 11.11 lakh crore, 3.4% of the total economic output. Railway enhancements include converting 40,000 bogies into Vande Bharat coaches and establishing three new corridors for improved connectivity. Electricity sector reforms involve a rooftop solar scheme benefitting 10 million households and steps towards achieving ‘net zero’ by 2070, including funding for offshore wind energy and mandatory biogas blending.
Green Energy:
Aligned with the commitment to achieve ‘net zero’ by 2070, the government has introduced several measures to propel environmental sustainability. To tap into offshore wind energy potential and bridge viability gaps, funding support will be extended, commencing with an initial capacity of one gigawatt. Additionally, strategic plans are in stir to establish coal gasification and liquefaction capacity of 100 million tonnes by 2030, a pivotal step towards reducing dependence on imports of natural gas, methanol, and ammonia. The government aims to apply a phased approach, mandating the blending of compressed biogas( CBG) with compressed natural gas( CNG) for transportation and piped natural gas( PNG) for domestic use. Likewise, fiscal assistance will be handed to procure biomass aggregation machinery, easing the effective collection of biomass resources. These initiatives collectively underscore the government’s proactive stance in promoting cleaner energy solutions and meeting ambitious environmental targets.
Investment Promotion and Technology Advancements:
With a concentrated effort on Foreign Direct Investment( FDI) and ongoing negotiations for bilateral investment covenants, the government seeks to draw and maintain foreign investments, propelling profitable growth and development. To beget research and innovation in arising technologies, a corpus of ₹ 1 lakh crore has been allocated for a fifty- time interest-free loan. This visionary initiative positions India as a frontrunner in global technology leadership.
Housing:
The Pradhan Mantri Awas Yojana (Grameen) is nearing its target of 3 crore houses and aims to construct an additional 2 crore houses within the next five years. A forthcoming scheme dedicated to middle-class housing will be introduced, aiming to promote home purchase or construction.
MSME Empowerment and Agriculture Support:
The budget underlined the significance of providing training to MSMEs for global competitiveness. The government’s dedication to enhancing skills through upskilling and reskilling is manifested in the creation of new Industrial Training Institutes( ITIs). Emphasis was placed on elevating farmers’ income and fostering value addition in the agrarian sector, with the ideal of stimulating both private and public investment inpost-harvest activities.
Government's Focus on Inclusive Growth:
Finance Minister Sitharaman emphasized the government’s dedication to advancing four key categories: women, youth, the economically disadvantaged, and farmers. Numerous schemes and initiatives were detailed to uplift these segments, contributing to holistic economic development.
Conclusion:
India’s budget for the financial year 2024- 25 reflects a balanced and forward- looking approach, combining stability in taxation, significant investments in infrastructure, a push for green energy, and initiatives to empower various sectors of the economy. The government’s commitment to inclusive growth underscores a vision for a prosperous and sustainable future.