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Top 100 Highlights of Budget 2024 by Nirmala Sitharaman


Budget 2024 proposes overhaul of Capital Gains Taxes – Short term gains 20% on all financial assets, On all other other assets it remains as it was, Long term – 12.5% on all assets, Exemption on profits 1.25 lakh a year

Standard Deduction Increased from 50,000 to 75,000.

Dedction of Family pension 15K to 25K

The New Slabs in the New Regime in , From 0-3 Lakh – Nil , 3-7 Lakh – 5% , 7-10 Lakh – 10% , 10-12 Lakh – 15% , 12-15 Lakh – 20% , If its more than 15 Lakh – 30%

Angel Tax Abolished for All Categories of Investors.
STT on F&O increased to 0.2 %

FM keeps capex at Rs 11.11 lakh crore or 3.4% of GDP

Capital Expenditure in the Budget, 2019 – ₹3.1 Lakh Crore, 2021 – ₹4.4 Lakh Crore, 2022 – ₹5.5 Lakh Crore, 2023 – ₹7.5 Lakh Crore, 2024 – ₹10 Lakh Crore, 2025 – ₹11.1 Lakh Crore

Fiscal deficit lowered to 4.9% of GDP, market borrowing unchanged at Rs 14.13 lakh crore

Fiscal deficit for FY25 further scaled down to 4.9 from 5.1% in interim Budget

Aim to reach a fiscal deficit of below 4.5% by FY26

BCD on mobile phones, chargers reduced to 15%.

Highest Capex Spending proposed to support the economy and job creation in

Govt allocates over Rs 3 lakh crore for schemes benefiting women,
girls:

Limit of Mudra loans to extend to Rs 20 lakh from Rs 10 lakh for those who have availed and paid previous loans.New mechanism announced for facilitating continuation of bank credit to during their stress period

The Budget focus on employment, skilling, MSMEs and Middle class

The Detailed roadmap to pursue nine priorities for generating opportunities for India These are: Agri, Employment, Inclusive development, Mfg and Services, Urban Devp, Energy, Infra, Innovation, R&D, NexGen Indian tax reforms needed.

Turning attention to the full year and beyond, in this budget, we particularly focus on employment, skilling, MSMEs, and the middle class. I am happy to announce the Prime Minister’s package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a 5-year period with a central outlay of ₹ 2 lakh crore

₹2 Lakh crore will be spent on youth and skill development over next 5 years

Digital coverage of farm land and farmers to help farmers get their dues.

PM Garib Kalyan Ann Yojna was extended for 5 years benefiting 80 crore people

Govt to provide incentive to 30 lakh youth entering job market by providing 1 month PF contribution. Govt to launch three employment-linked schemes

Govt to set up working women hostels to promote women participation in workforce

The PM Vishwakarma Scheme was announced by the Hon’ble Finance Minister in the Annual Union Budget 2023-24 on 01.02.2023 and launched by the Prime Minister on 17.09.2023. The Scheme aims to provide end-to-end support to artisans and craftspeople who work with their hands and tools

FM allocated Rs. 1.48 lakh cr for education, employment and skilling. 5 schemes for 4.1 crore youth with an outlay of Rs. 2 lakh cr over a period of 5 years.

We will formulate plan Purvodaya for all round development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh
Govt to provide e-vouchers directly to 1 lakh students every year with interest subvention of 3 per cent of loan amount
1,000 ITIs to be upgraded in hub and spoke model,
Model skilling loan scheme will be revised to facilitate loans up to Rs 7.5 lakh

New centrally-sponsored scheme for skilling in collaboration with states, industry; 20 lakh youth to be skilled over 5 years

Govt will release new 109 high yielding, climate resilient seeds for 32 field and horticulture crops. ₹ 1.52 lakh crore allotted for agriculture & allied sectors

Govt to set up working women hostels to promote women participation in workforce

Govt to provide funds to private sector, domain experts & others for developing climate-resilient seeds

Employment and skilling: 3 schemes for Employment linked incentives based on EPFO enrolment. Scheme A : First timers – 1 month wage to all entering the workforce in all formal sectors/eligibility of salary of 1 lakh a month . Scheme B : Job creation in Manf; Additional Employment in Manf to be incentivised EPFO contribution

100 branches of India Post Payments Bank to be set up in North East:

2.66L Cr Rs. Provision made for rural development

Union Budget 2024-25 proposes revision of Model Skill Loan Scheme to help 25,000 students every year.

E-vouchers for loans upto Rs. 10 lakh for higher education in domestic institutions to be given directly to 1 lakh students every year for annual interest subvention of 3% of loan amount.

Industrial node at Gaya on Amritsar Kolkata Industrial Corridor to be developed

On the Amritsar-Kolkata Industrial Corridor, we will support development of an industrial node at Gaya. This corridor will catalyze industrial development of the eastern region

More than 100 branches of India Post Payment Bank to be set up in the North East region

Budget provides Rs 2.66 lakh crore for rural development
Voluntary Closure of LLPs – Much needed Lakhs will save late fees and fine

We will formulate a plan ‘Poorvodaya’ for all-round development of the Eastern region of the country, covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh.

MSME Buyers T/o Threshold reduced for mandatory onboarding to treds reduced from Rs. 500 Cr to Rs. 250Cr.

The IBC has dissolved more than 1000 companies, resulting in direct recovery of Rs 3.3 lakh cr

Appropriate changes to IBC will be initiated, additional tribunals will be established

Rental housing with dorm like accomodation for industrial workers will be facilitated in PPP mode

For facilitating term loans to MSMEs, a credit guarantee scheme will be introduced. The scheme will operate on the cooling of credit risks of such MSMEs. A self-financing guarantee fund will provide to each applicant cover of up to Rs 100 crore while loan amount may be larger,

Andhra Pradesh Reorganisation Act- Our govt has made efforts to fulfil the commitments in Andhra Pradesh Reorganisation Act. Recognising the state’s need for capital, we will facilitate special financial support through multilateral agencies. In the current FY, Rs 15,000 crore will be arranged with additional amounts in future years

Sidbi to open 24 new branches to serve MSMEs clusters, says FM
Pradhan Mantri Janjatiya Unnat Gram Abhiyan will be launched for improving the socio-economic condition of tribal communities. The scheme will adopt saturation coverage for tribal families in tribal-majority villages and aspirational districts. This will cover 63,000 villages benefitting 5 crore tribal people.

Female Labour Force Participation Rate (LFPR) rose to 37% in 2022-2023 from 23.3% in 2017-2018

Women hold 55.6 per cent of PM Jan Dhan Yojana accounts
With creation of 8.3 million SHGs, 89 million women covered under Deendayal Antyodaya Yojana-NRLM

Under PM Mudra Yojana, 68% loans sanctioned to women and 77.7% women beneficiaries under Stand Up india

Nuclear energy to be an important part of energy requirements
1 crore farmers across the country will be initiated into natural farming supported by certification and, branding.

10,000 need-based bio-input resource centers will be established
Integrated technology platform to be set up for improving the outcomes under Insolvency & Bankruptcy Code

To achieve Aatmanirbharta in pulses & oil seeds, their production, storage, and, marketing

Debt recovery tribunals to be strengthened & additional tribunals to be established to speed up recovery

14 large cities with a population above 30 lakh will have Transit Oriented Development plans

1 cr urban poor and middle-class families to be covered under PM Awas Yojana Urban 2.0

100 weekly ‘haats’ or street food hubs in select cities
Investment-ready “plug and play” industrial parks to be developed in or near 100 cities

12 industrial parks sanctioned under National Industrial Corridor Development Programme

More than 1.28 crore registrations and 14 lakh applications received under PM Surya Ghar Muft Bijli Yojana

Pumped Storage Policy to be brought out for electricity storage and smooth integration of renewable energy in the overall energy mix

Joint venture between ntpclimited & BHEL_India to set up a full scale 800 MW commercial thermal plant using AUSC technology
Policy to support pump storage projects will be brought to provide round the clock energy, says finance minister.

Finance minister Sitharaman announced scheme for rooftop solar panels that would enable 1 crore households to have electricity free of cost upto 300 units per month.

substantial sum of Rs. 2.66 lakh crore has been earmarked for the development of rural areas, which includes the enhancement of rural infrastructure.

PM Awas Yojana-Urban 2.0 that would fulfill housing requirements of 1 crore poor and middle-class families.

Power projects, including setting up a new 2400 MW power plant at Pirpainti in Bihar, will be taken up at a cost of Rs 21,400 crore:

Govt will launch Phase IV of PM Gram Sadak Yojana in 25 rural habitations, which have become eligible due to population increase
Govt to maintain strong fiscal support for infra projects for next 5 year

Govt to facilitate investment grade energy audit of micro and small industries in 60 clusters

PM Surya Ghar Muft Bijli Yojana generated remarkable response with 1.8 crore people registering under it:

FM proposes central assistance of Rs 2.2 lakh crore for urban housing over next five years.

Proposes Rs 1.5 lakh cr long-term interest-free loans to support states towards infra development.

Vishnupad Temple Corridor & Mahabodhi Temple Corridor to be transformed into world class pilgrim & tourist destinations
Nalanda to be developed as a tourist Centre; Nalanda University to be revived to its glorious stature

Next gen reform proposal: NPS Vatsalya in which parents can contribute for child. Coverts to regular NPS account when child becomes major.

Government to aid flood-affected states like Bihar, Assam, Himachal Pradesh, Uttarakhand, and Sikkim with Flood Management and Development Support, including Financial Backing for Flood Control Projects

Reforms in land administration, urban planning, usage and building bylaws in both rural and urban areas

All lands in rural areas to be assigned Unique Land Parcel Identification Number

Land registry to be established in rural areas

The govt. is committed to the all-around, all-pervasive, and all-inclusive development of people, particularly farmers, women, youth, and the poor.

For achieving social justice comprehensively, the saturation approach of covering all eligible people through various programs including those for education and health will empower them by improving their capabilities.

Anusandhan National Research Fund to be set up for basic research and prototype development

Financing pool of ₹ 1 lakh crore to spur private sector-driven research and innovation at commercial scale

The government has proposed to set up a venture capital fund of ₹1000 crore for the space economy

Financial Assistance for Veteran Artists’ to provide financial assistance to veteran artists aged 60 years and above having annual income not exceeding Rs. 72,000/-

Internships for students of various technical disciplines within MSMEs

Government will strive to further simplify, rationalise GST tax structure

Technology Centres impart short term industrial training/internship as part of AICTE course curriculum to the youth. The National Institute for Micro, Small and Medium Enterprises (Ni-MSME) under the Ministry is providing internships for students of several educational institutions like IIIT Design Management, Andhra Pradesh, Institute of Public Enterprises, Hyderabad, Hissar

Agricultural University Haryana, Rajeev Gandhi National Institute for Youth Development, Tamil Nadu etc

Rules for FDI and overseas investment will be simplified, including nudging privatisation, using Indian rupee for overseas investment:
Government will develop taxonomy for climate

Govt will revamp Shram Suvidha Portal to enhance compliance for industry and trade

customs duties on 25 critical minerals, and lowers BCD for two of them. Many changes in Basic Custom Duty

Technology to speed up digitalization of economy, Jan Vishwas Bill 2.0 to improve Ease of Doing Business, States to be incentivized to implement Business Reforms Action Plans and digitalization

NPS for Minors NPS-Vatsalya, a plan for contribution by parents and guardians for minors, to be launched Plan can be seamlessly converted into a normal NPS account on minor becoming an adult

Net tax receipts estimated at Rs 25.83 lakh crore in FY25

propose to reduce customs duties on gold and silver to 6% and 6.5% on platinum

*The Kerala Revenue Recovery (Amendment) Bill, 2024*

The Kerala government has introduced significant amendments to the Kerala Revenue Recovery Act of 1968, aiming to provide substantial relief to debt-ridden borrowers, ensuring that the attached property is not lost forever.

The amendments, passed by the Kerala Legislative Assembly, are designed to offer a more compassionate approach to revenue recovery, especially in light of the financial hardships exacerbated by recurring floods and the COVID-19 pandemic.

One of the most significant changes is the introduction of provisions allowing the government to stay recovery proceedings.

This means that in cases where debtors are unable to repay their loans due to unforeseen circumstances, the government can temporarily halt the recovery process. Additionally, the amendments permit debtors to repay their outstanding amounts in instalments, providing much-needed flexibility. Previously, the rigid structure demanded immediate full repayment, causing undue stress for many borrowers.

New Sections were inserted such as Section 83A giving special power to the government to issue stay and instalments, Section 83B giving power to issue moratorium and Section 83C for bringing Settlement Schemes for the recovery of the arrear amounts. Another notable change is the amendment of Section 6, which brings a reduction in the maximum interest rate on outstanding amounts from 12% to 9%. This reduction is expected to ease the financial burden on debtors, making it more feasible for them to clear their dues without falling into a deeper debt trap.

By lowering the interest rate, the government aims to create a more equitable and supportive environment for struggling borrowers. The amendment to Section 2 introduces the concept of ‘bought-in land’, referring to properties that remain unsold during auctions and are subsequently taken over by the government. It also inserted a new Section 50A to the Act stressing the Reconveyance of Bought-in-land.

The new legislation stipulates that such land will be kept unsold for a lock-in period of five years, during which the original owner can reclaim the property by paying the outstanding amount along with interest. This provision prevents the immediate loss of property and offers debtors a fair chance to recover their assets. To further protect debtors, the amendment to Section 36 ensures that the attachment of property will be proportional to the outstanding amount.

This change prevents the excessive attachment of property, which has been a significant issue in the past. Additionally, as per the amendment to Section 44, debtors will now be allowed to sell wholly or in part, their attached land with the District Collector’s permission. The purchaser shall remit the revenue recovery dues with interest and other dues out of the sale consideration. It also enables the debtor to generate funds for repayment without losing their entire property.

The amendment to Sections 12 and 49 paves the way for the introduction of e-auctions for auction proceedings. This move towards digitalisation aims to enhance transparency and efficiency in the auction process, reducing the chances of manipulation and ensuring fairer outcomes for all parties involved. By embracing technology, the government seeks to modernise revenue recovery procedures and instil greater confidence among debtors and financial institutions alike.