Budget 2024: Modi says neo-middle class empowered, newer opportunity for education & skill development offered

New Delhi: Prime Minister Narendra Modi said on Tuesday that the budget continues to empower the neo-middle class and offer new opportunities for education and skills development.

Modi said the budget provides new strength to the middle class and includes robust plans to empower tribal societies, Dalits, and the backward classes. The government has strengthened its commitment to create opportunities for employment and self-employment.

“In this budget, the government has announced the Employment Linked Incentive scheme, which will create crores of new jobs across the country. Under this scheme, our government will pay the first salary of young people starting their first job. Whether it's assistance for skill development and higher education or the internship scheme for 1 crore youngsters, this will enable young people from villages and impoverished backgrounds to work in top companies, opening new doors of possibility for them. We aim to foster entrepreneurship in every city, village, and household,” the Prime Minister said.

He said to support entrepreneurship, the limit for Mudra loans without collateral has been increased to ₹20 lakh from ₹10 lakh. Mudra provides support for the micro-enterprise sector in the country.

Modi said the budget will enhance the economic participation of women and create new avenues of progress for small traders and Micro and Small Medium Enterprises (MSMEs). The budget proposed a new scheme to improve the ease of credit for MSMEs.

It plans to set up e-commerce export hubs to enable MSMEs and traditional artisans to sell their products in the overseas markets and to facilitate the setting up of 100 food quality and safety testing labs with NABL accreditation.

He said the budget has introduced many new opportunities for startups and the innovation ecosystem. 

“Whether it is the ₹1,000 crore fund to promote the space economy or the decision to abolish the angel tax, several significant steps have been taken,” Modi said.

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Finance minister Nirmala Sitharaman said in her budget speech that a comprehensive review of the Income-Tax Act would be carried out to make it concise, lucid, easy to read and understand. She also announced some changes in the income tax regime.

“In this budget, income tax reductions and increased standard deductions have been introduced. TDS rules have been simplified, resulting in extra savings for every taxpayer,” the PM added.

To make India self-reliant in the agricultural sector, Modi said the government is establishing vegetable production clusters.

“This initiative will open new markets for small farmers to sell their fruits, vegetables, and other produce at better prices. Simultaneously, it will increase the availability of fruits and vegetables for the middle class, ensuring better family nutrition. Therefore, support has been announced to boost the production of pulses and oilseeds,” he said.

Sitharaman said the budget focuses on nine priority areas---productivity and resilience in agriculture, employment & skilling, inclusive human resource development and social justice, manufacturing & services, urban development, energy security, infrastructure, innovation, research & development and next generation reforms.

It includes major initiatives to eradicate poverty and empower the poor, under which a decision has been taken to construct 30 million houses for the poor.

The Janjatiya Unnat Gram Abhiyan will connect 50 million tribal people with basic amenities.

Additionally, the Gram Sadak Yojana will link 25,000 rural areas with all-weather roads, benefitting remote villages in all states.