Budget 2024: Changes in new tax regime, MSME reforms; top 10 points you need to know

Budget 2024: Finance Minister Nirmala Sitharaman announced the Union Budget 2024 today, July 23, 2024, with the new tax regime taking centre stage. Spanning nine key priorities, the budget impacts various sectors, including agriculture. Here are the top 10 points you need to know about the Budget 2024.

1. New Tax Regime Budget 2024

The finance minister has announced new tax rates which would impact the taxpayers falling in these tax brackets:

Those earning between ₹6-7 lakh will now pay 5 per cent tax instead of 10 per cent.

Those earning between ₹9-10 lakh will now pay 10 per cent tax instead of 15 per cent.

According to Budget 2024 announcements, salaried taxpayers in the new tax regime can now save ₹17,500 in income tax.

2. Employment and Skilling

The government has also promised an internship scheme that would enable one crore youth to intern in top companies over a five-year period. Employment-linked incentives, including wage support for first-time employees, will be provided for at least a month.

Finance Minister Nirmala Sitharaman also promised to set up 1,000 industrial training institutes and provide 20 lakh youth with skill-based training.

3. MSME and Manufacturing Support

Special attention has been given to MSMEs and the manufacturing sector. The government has introduced credit guarantee schemes and term loans for machinery purchases. In addition, technology support packages will also be available for MSMEs. Small Industries Development Bank of India (SIDBI) will open 24 new branches to serve the MSME clusters.

4. Financial Initiatives

The government has announced education loans of up to ₹10 lakh for higher education in domestic institutions. The limit for previous borrowers of Mudra loans has been increased to ₹20 lakh from ₹10 lakh.

5. Agriculture and Rural Development

While presenting the Budget 2024, the finance minister announced an allocation of ₹1.52 lakh crore for the agriculture sector. The government will also release 109 high-yielding, climate-resilient seeds for 32 field and horticulture crops.

6. Infrastructure and Regional Development

Special financial support of ₹15,000 crore for Andhra Pradesh has been announced, while Bihar has been promised new airports, medical facilities, and sports infrastructure development.

7. Inflation and Economic Growth

With India's economic growth described as a "shining exception," Finance Minister Nirmala Sitharaman said the government aims to reduce the inflation rate to 4 per cent. There would be an increased focus on job creation and boosting consumption, potentially benefiting consumer goods, real estate, and auto sectors.

8. Nine Priority Areas Outlined

The announcement of Budget 2024 outlines nine areas: Agriculture, Employment, Inclusive Development, Manufacturing and Services, urban development, Energy, Infrastructure, Innovation and R&D, and Next-Generation Reforms.

9. Women and Social Welfare

Over ₹3 lakh crore has been allocated for schemes benefiting women and girls. More working women hostels have also been planned. To spread social welfare, the PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana) scheme has been extended for five years, which would benefit over 80 crore people.

10. Digital and Technological Advancements

Development of Digital Public Infrastructure (DPI) applications for credit, e-commerce, law and justice, and corporate governance has also been announced.