Budget 2024 Top 10 Highlights: Sector Wise Allocation, Tax Slabs, Employment & Skilling

Budget 2024 Top Highlights & Updates

As per the Press Information Bureau (PIB), the following are the key updates on the Indian Budget 2024 presented by Finance Minister Nirmala Sitharaman:

• Finance Minister Nirmala Sitharaman lays down nine priorities of the Budget: productivity and resilience in agriculture, employment and skilling, improved human resources and social justice, manufacturing and services, urban development, energy security, infrastructure, innovation and R&D, and next-generation reforms.
• The Budget for FY24-25 allocates ₹1.48 lakh crore towards education, employment, and skills development.
• One crore farmers will be introduced to natural farming with certification and branding, implemented through scientific institutions and participating Gram Panchayats.
• Incentives for 30 lakh youth entering the job market, including one month’s PF (provident fund) contribution.
• Benefits extended to Bihar and Andhra Pradesh but no announcement about a special package for these states.

Top Budget 2024 Highlights

Here’s a sector-by-sector breakdown of the major announcements made in the Union Budget 2024 so far:

1) Budget 2024 Key Highlights: Income Tax Slabs Revised

The revised tax slabs are said to result in ₹17,500 savings in income tax, the Finance Minister has said. 

Related Read: Income Tax Budget 2024 Highlights

2) Budget 2024 Key Highlights: FY25 Fiscal Deficit projected at 4.9% of GDP

• FM Nirmala Sitharaman projects the FY25 fiscal deficit at 4.9% of GDP, down from 5.1% in the Interim Budget, with a goal to reduce it below 4.5% next year.
• Expenditure for FY25 is set at ₹48.21 lakh crore, while receipts are projected at ₹32.07 lakh crore.

3) Budget 2024 Key Highlights: ₹1.52 lakh crore allocated to Agriculture sector

• ₹1.52 lakh crore allocated to agriculture and allied sectors.
• Establishment of 10,000 bio research centers.
• Natural farming initiative for 1 crore farmers with branding and certification.
• Development of vegetable production clusters near consumption centers.
• Financial support for shrimp breeding centers and export facilitation through NABARD.
• Launch of Kisan Credit Cards in five states and registration of 6 crore farmers for self-sufficiency in pulses and oilseeds.

Read More: Union Budget 2024 Highlights for Agriculture Sector

4) Budget 2024 Key Highlights: Job Opportunities for 4.1 Crore Youth

• ₹2 lakh crore allocated to create job opportunities for 4.1 crore youth over the next five years.
• Proposal to employ approximately 4.1 crore young people within the next five years.

5) Budget 2024 Key Highlights: ₹2.66 lakh crore for rural development

• ₹2.66 lakh crore allocated for rural development, encompassing rural infrastructure.
• Additional three crore houses to be built under the PM Awas Yojana, covering both rural and urban areas.

6) Budget 2024 Key Highlights: Skilling, ITIs & Internships

Industrial Training Institutes

1,000 ITIs to be upgraded through hub and spoke models over the next five years, focusing on outcomes and quality with state and industry collaboration.

Internship Program

One crore youths to receive skills training from leading Indian companies within five years, including a 12-month Prime Minister’s Internship with a monthly allowance of ₹5,000.

Read More About: Budget 2024 Highlights for Education, Employment and Skilling

7) Budget 2024 Key Highlights: Support for MSMEs

• A new mechanism to ensure continued bank credit for MSMEs during financial stress.
• Mudra loan limits to be increased from ₹10 lakh to ₹20 lakh.
• The turnover threshold for mandatory onboarding on the TReDS platform to be reduced from ₹500 crore to ₹250 crore.
• Financial support to be provided for 50 multi-product food irradiation units in the MSME sector.
• E-Commerce Export Hubs to be established in PPP mode to help MSMEs and traditional artisans sell products internationally.

Related Read: Top Highlights of Budget 2024 for MSMEs

8) Budget 2024 Key Highlights: Revised Model Skill Loan Scheme

• The Model Skill Loan Scheme to be revised to offer loans up to ₹7.5 lakh with government-backed guarantees, benefiting 25,000 students annually.
• Working women’s hostels and creches to be set up in collaboration with industry.
• E-vouchers for loans up to ₹10 lakh for higher education at domestic institutions to be provided to 1 lakh students each year, including a 3% annual interest subvention.

9) Budget 2024 Key Highlights: 3 Schemes for Employment Linked Incentive

Scheme A: First-Time Employment Incentive

New employees to receive one month’s wage, up to ₹15,000, paid in three installments as a direct benefit transfer.

Scheme B: Manufacturing Job Creation

Incentives to be offered for hiring first-time employees in the manufacturing sector, with benefits based on EPFO contributions for the first four years of employment.

Scheme C: Employer Support

Employers to be reimbursed up to ₹3,000 per month for two years for EPFO contributions for each additional employee, with a salary cap of ₹1 lakh per month, benefiting 2.1 lakh youths.

Related Read: List of Schemes and Policies Announced in Budget 2024

10) Budget 2024 Key Highlights: Industrial Parks in 100 Cities

• Investment-ready “plug and play” industrial parks to be created in or near 100 cities.
• Twelve industrial parks to be sanctioned under the National Industrial Corridor Development Programme.
• A mission to be established for the domestic production and recycling of critical minerals, as well as the acquisition of mineral assets abroad.

11) Budget 2024 Key Highlights: Custom Duties Slashed

• Customs duties on gold and silver reduced to 6%, and on platinum to 6.4%.
• Lithium, copper, and cobalt are now exempt from customs duties.
• Expanded exemption list for capital goods used in manufacturing solar cells and panels.
• Basic Customs Duty (BCD) on MDI for spandex yarn manufacturing reduced from 7.5% to 5% under specific conditions.
• Customs duty exemptions applied to the manufacturing of connectors and oxygen-fused copper.

12) Budget 2024 Key Highlights: Changes in Capital Gains Tax

• The tax rate on short-term capital gains for certain financial assets has been set at 20%.
• Long-term capital gains tax for financial assets is now 12.5%.
• The TDS rate for e-commerce operators has been reduced to 0.1%, down from 1%.

13) Budget 2024 Key Highlights: Advanced Ultra-Super Critical Thermal Power Plants

• Indigenously developed Advanced Ultra-Super Critical Thermal Power Plants, known for their high efficiency, will include an 800 MW commercial plant supported by government fiscal assistance.
• The government to develop solutions for electricity storage to support renewable energy and advance research on smaller nuclear reactors. 
• Collaboration with the private sector to focus on establishing Bharat Small Reactors and innovating new nuclear technologies.
• A strategic roadmap to be created for industries with challenging emissions, covering energy efficiency and emission reduction targets.

14) Budget 2024 Key Highlights: Angel Tax Abolished

• Angel Tax for all class of investors stand abolished. This move has been proposed to bolster the startup ecosystem.

15) Budget 2024 Key Highlights: Three Cancer Medicines Exempt From Customs Duty

• The FM announced plans to review and rationalize customs duty rates over the next six months following a reduction in 2022-23.
• Three additional medicines for cancer patients to be fully exempted from customs duties to provide relief.
• Changes are proposed to the basic customs duty on X-ray tubes and flat panel detectors to support domestic production of X-ray machines.

16) Budget 2024 Key Highlights: Private Infrastructure Investment to be fuelled

• An allocation of ₹11.11 lakh crore for capital expenditure has been set, amounting to 3.4% of GDP.
• Private sector investment in infrastructure to be boosted through Viability Gap Funding, and a new market-based financing framework to be introduced.
• States to be encouraged to match this investment level based on their own infrastructure development priorities.

17) Budget 2024 Key Highlights: Scheme to Support Development of 100 Weekly Haats

• Building on the existing PM Swanidhi scheme for street vendors, a new initiative to be launched to establish 100 weekly markets in selected cities over the next five years.

Budget Allocation 2024 – Sector Wise Breakdown

Finance Minister Nirmala Sitharaman presented the Union Budget 2024, focusing on balanced growth across various sectors. Here’s a detailed breakdown:

Defence

The defence sector maintains its top priority with an allocation of ₹6.21 lakh crore, unchanged from the interim budget. This ensures continued investment in national security and modernization.

Education

The budget allocates ₹1.48 lakh crore for education, employment, and skill development. Initiatives include financial assistance for higher education loans, skilling 20 lakh youth, and upgrading ITIs.

Housing

₹10 lakh crore is dedicated to the Pradhan Mantri Awas Yojana (PMAY), emphasizing housing for urban poor and middle-class families, with plans to build two crore rural homes.

Agriculture

₹1.52 lakh crore is set aside for agriculture, focusing on productivity and resilience. The introduction of one crore farmers to natural farming and the development of 10,000 bio-input resource centers are key highlights.

Railways

The railways receive a significant boost with ₹2.52 lakh crore, introducing three economic corridors and upgrading 40,000 rail bogies to Vande Bharat standards under PM Gati Shakti.

Infrastructure

An 11% increase in capital spending, totaling ₹11.11 trillion, aims to enhance infrastructure and job creation.

Women Welfare

Over ₹3 lakh crore is allocated for programs supporting women and girls, focusing on employment and skill development.

Tourism

The tourism sector receives ₹2,479 crore, with plans to develop famous destinations and support state branding efforts.

Healthcare

₹89,287 crore is allocated to healthcare, with added support for pharmaceutical PLI schemes and extending Ayushman Bharat coverage to health workers.

Green Energy

₹19,100 crore is dedicated to renewable energy, aiming for a 100 MT coal gasification capacity and promoting e-buses and wind energy.

IT and Telecom

₹1,16,342 crore is allocated to IT and telecom, with reduced customs duty on mobile phones and related technology.

Research and Innovation

A ₹1 trillion fund supports deep-tech defence technologies and self-reliance, offering a 50-year interest-free loan for growth.

Free Power and Solarisation

The PM Surya Ghar Muft Bijlee Yojana proposes 300 units of free power monthly, benefiting about one crore households through solarisation.

Budget 2024 PDF Download

To download the full set of documents of the Union Budget 2024, follow these steps: 

• Visit the Ministry of Finance website
• Scroll down to “Union Budget and Economic Survey” section and click on it.
• Download all available documents shown in the new window.

FAQs on Budget 2024 Highlights

1. What are the important points of Budget session 2024?

Budget 2024, presented by Finance Minister Nirmala Sitharaman, focuses on enhancing job creation, infrastructure development, and social welfare. Key highlights include revised tax slabs, increased allocations for agriculture, education, and rural development, as well as new schemes for employment-linked incentives and support for MSMEs.

2. How will Budget 2024 impact small businesses?

Budget 2024 supports small businesses through increased Mudra loan limits, a new mechanism for continued bank credit during financial stress, and the establishment of e-commerce export hubs. Additionally, the reduction in TReDS platform turnover thresholds aims to improve financial access for MSMEs.

3. How does the Budget address inflation concerns?

The Budget aims to manage inflation indirectly by focusing on fiscal discipline and economic growth through increased infrastructure investment and support for agricultural productivity, which are expected to stabilize prices and boost supply chains.

4. Where can I find detailed information on Budget 2024 allocations?

Detailed information on Budget 2024 allocations can be accessed by visiting the Ministry of Finance website, scrolling to the “Union Budget and Economic Survey” section, and downloading the available documents.

5. How does Budget 2024 plan to boost infrastructure development?

Budget 2024 allocates ₹11.11 lakh crore for capital expenditure, promotes private investment through Viability Gap Funding, and introduces a market-based financing framework. It also encourages states to match this investment for local infrastructure projects.