Modi Government Aims for Developed Nation Status by 2047: Key Highlights from Finance Minister Sitharaman’s 2024 Budget
Focus on the Poor, Women, Youth, and Farmers; New Tax Regime Changes and Major Allocations for Education and Employment
The Narendra Modi government is gearing up to transform India into a developed nation by 2047. This commitment was evident in Finance Minister Nirmala Sitharaman’s budget speech on Tuesday. Presenting her seventh budget, and the Modi government’s 13th, Sitharaman emphasized that this budget focuses on the poor, women, youth, and farmers. She highlighted the continued trust of the Indian populace in Prime Minister Modi’s leadership, with the NDA government receiving a third mandate. Despite challenging times, India’s economy is progressing rapidly. In this budget, the common man received some relief with changes to the new tax regime, where income up to ₹3 lakh is now tax-free. Under the old tax regime, the tax exemption on income up to ₹2.5 lakh remains unchanged, indicating a gradual shift towards the new tax regime. Let’s delve into the key announcements made by Sitharaman.
The Finance Minister increased the deduction limit for the new tax regime from ₹50,000 to ₹75,000. Under the new tax regime, income up to ₹3 lakh will be tax-free. However, no relief was provided under the old tax regime. The new tax regime will impose a 5% tax on income between ₹3 lakh to ₹7 lakh, 10% on ₹7 lakh to ₹10 lakh, 15% on ₹10 lakh to ₹12 lakh, 20% on ₹12 lakh to ₹15 lakh, and 30% on income up to ₹50 lakh.
During her budget presentation, Sitharaman announced the extension of the Prime Minister’s Garib Kalyan Yojana for another five years, benefiting 80 crore people across the country. The government’s focus is on employment, skills, and youth. Currently, inflation is at 3.1%. This year, ₹1.48 lakh crore is proposed to be spent on education and employment.
Sitharaman allocated ₹2 lakh crore for job creation, skill development, and other facilities, aiming to create job opportunities for 4.1 crore youth over five years. She announced a provision of ₹1.48 lakh crore for education, employment, and skill development this year. The government will contribute up to ₹3,000 to the PF accounts of first-time job seekers earning up to ₹1 lakh per month.
Under Modi government’s new scheme, internships will be promoted in 500 large companies, benefiting 1 crore youth. This special internship package will offer opportunities to young people in top companies, along with a monthly internship allowance of ₹5,000 and an additional ₹6,000 upon completion of the internship. Over five years, this scheme will benefit 1 crore youth.
The Finance Minister also announced loans up to ₹10 lakh for higher education in domestic institutions. An e-voucher will provide an annual interest subsidy of 3% on the loan amount for 1 lakh students.
Sitharaman emphasized that agriculture, employment, and social justice are government priorities. Urban development and energy security are also crucial. Enhancing productivity and capacity in agriculture is essential, with plans to increase the production and storage of pulses and oilseeds. Digital infrastructure in agriculture will be strengthened, with digital surveys of crops in 400 districts.
The budget allocated ₹1.52 lakh crore for agriculture and related sectors, a 21.6% increase from the previous year’s ₹1.25 lakh crore. However, there was no announcement regarding the Minimum Support Price (MSP), despite farmers’ demands, and the Kisan Samman Nidhi amount remains at ₹6,000.
The Finance Minister announced ₹3 lakh crore for schemes benefiting women and girls. To increase female workforce participation, the government will establish hostels for working women. Over 100 branches of India Post Payment Bank will be set up in the northeastern region. The Polavaram irrigation project will be completed to ensure national food security. Funds will be allocated for development in the Kopparthi region of the Visakhapatnam-Chennai industrial corridor and the Orvakal region of the Hyderabad-Bangalore industrial corridor.
Sitharaman’s budget is seen as particularly beneficial for the poor, with several schemes included. The Prime Minister’s Garib Kalyan Anna Yojana will be extended for five years, providing relief to the poor. She also announced housing for 1 crore urban poor and middle-class families, with a government investment of ₹10 lakh crore. The 2024-2025 budget under the Prime Minister Awas Yojana includes plans to build an additional 3 crore houses, with ₹10 lakh crore allocated for the current fiscal year.
