Union Budget 2024 Highlights & Announcements: Not for country's progress, it's a 'save Modi govt' budget, says Congress leader Kharge

The left parties expressed their dissatisfaction with the Union Budget, stating that it fails to tackle crucial issues such as inflation and unemployment while attempting to conceal the government's shortcomings. The CPI(M) pointed out the absence of proposals for wealth or inheritance tax and the lack of relief on the indirect tax burden on citizens, asserting that this budget will exacerbate poverty among the underprivileged while benefiting the wealthy.

In a video statement released by the party, CPI(M) General Secretary Sitaram Yechury criticized the budget, saying, "The budget presented today is a contractionary budget. What the people required on the contrary is an expansionary budget."

Yechury highlighted the nation's high unemployment rates, soaring food inflation, and increasing levels of unrest and poverty, emphasizing that the budget fails to address these pressing concerns unless the economy expands.

The Department of Drinking Water and Sanitation has been allocated a budget of Rs 77,390.68 crores for the upcoming financial year 2024-2025. Compared to the revised estimate of Rs 77,032.65 crore in the previous budget for 2023-2024, this allocation shows a slight increase of just 0.5 per cent.

A significant share of the department's budget for this fiscal year is allocated to the Jal Jeevan Mission (JJM), which has been granted Rs 69,926.65 crore. This represents a small increase from the revised estimate of Rs 69,846.31 crore in 2023-2024.

The primary objective of this flagship programme is to ensure that every rural household has access to a functional tap connection by 2024. The mission emphasizes the importance of providing consistent and sufficient water supply to these households.

According to official data, more than 15 crore rural households have been provided with tap water connections as of now. Union Minister for Jal Shakti C R Paatil commended the achievement, stating, "this golden milestone has not only given a gift of pure water to countrymen but also uniquely improved their quality of life".

The data revealed that since the launch of the Jal Jeevan Mission (JJM) in 2019, 77.65 per cent, or 15,00,27,135 rural households, have been provided with tap water connections.

The mission has made significant progress towards its goals through collaboration with states, Union Territories (UTs), and development partners.
The JJM aims to provide a connection to all rural households by the end of this year.

As per the data, the states and UTs that have achieved 100 per cent coverage include Goa, Telangana, Haryana, Gujarat, Punjab, Himachal Pradesh, Mizoram, Arunachal Pradesh, Puducherry, Dadra and Nagar Haveli and Daman and Diu, and Andaman and Nicobar Islands.

Telecom goods- BCD increased from 10% to 15% on PCBA of specified telecom equipment
Plastic goods- BCD raised from 10 to 25%.
Ammonium Nitrate- Duty increased from 7.5% to 10%
PVC flex banners- Duty increased from 10 to 25 per cent.
PCBA (printed circuit board assembly) of specified telecom equipment- Duty increased from 10 to 15 per cent.

The Ministry of Home Affairs has been allocated Rs 2,19,643.31 crore in the Union Budget 2024-25, with a significant portion of Rs 1,43,275.90 crore being allocated to central police forces such as the CRPF, BSF, and CISF. These forces are tasked with maintaining internal security, guarding borders, and protecting vital installations. The previous interim budget for 2024-25 had allocated Rs 2,02,868.70 crore to the home ministry, which is led by Union Home Minister Amit Shah.

Jammu and Kashmir, which is currently under the direct control of the central government following the abrogation of Article 370, has been allocated Rs 42,277.74 crore by Union Finance Minister Nirmala Sitharaman. In August 2019, Jammu and Kashmir lost its special status and was divided into two Union Territories.

Other Union Territories have also received allocations in the budget, with Andaman and Nicobar Islands receiving Rs 5,985.82 crore, Chandigarh receiving Rs 5,862.62 crore, Ladakh receiving Rs 5,958 crore, Dadra and Nagar Haveli and Daman and Diu receiving Rs 2,648.97 crore, and Lakshadweep receiving Rs 1,490.10 crore.

The budget has also allocated funds for census-related work, with Rs 1,309.46 crore being allocated compared to Rs 578.29 crore in 2023-24. The National Disaster Response Force has been allocated Rs 1,606.95 crore, which is a slight decrease from the Rs 1,666.38 crore allocated in 2023-2

The Union Budget 2024-25, presented by Sitharaman in Parliament, has allocated Rs 2,357.14 crore to the civil aviation ministry for the current fiscal year ending in March 2024. This represents a decrease from the revised budgetary allocation of Rs 2,922.12 crore for the previous fiscal year, 2023-24.

One of the key components of the ministry's budget is the regional air connectivity scheme, which has been allocated Rs 502 crore for the current fiscal year. This is a significant reduction from the Rs 850 crore allocated in the revised budget for 2023-24. The funds are intended to support the revival of 22 airports, the commencement of 124 RCS routes, and provide Viability Gap Funding for North East Connectivity.

In addition to the regional air connectivity scheme, a new scheme has been introduced to enhance connectivity and aviation infrastructure in the northeast region. The details of this scheme have not been elaborated upon in the budget document.

West Bengal chief minister Mamata Banerjee has expressed her disappointment with the Union Budget 2024, calling it "directionless, anti-people, and lacking vision." She believes that the budget is solely focused on a political mission and fails to address the needs of the common people.

Banerjee said, "Directionless, anti-people, no vision, only political mission is there. I don't see any light, it is dark...They make tall claims and make promises during elections. But after they get votes, they forget Darjeeling, Kalimpong...People in the hills of Darjeeling should remember this. Let Sikkim get things, we have no objection but keeping Darjeeling deprived is not right...This Budget is anti-people, anti-poor and not for the common people. This is a Budget to appease one party. This is a Budget full of political biases."

On changes in tax slab and other changes, FM Sitharaman said, "It is not just because we have mentioned it in this budget but the attempt to widen the tax net is something which we have been repeatedly saying, that India's tax net will have to be widened - whether it is in the direct taxation or indirect. Second, there are also now PSU dividends which are improving because the valuations have gone up really high and their performance has also now substantially increased."

"So, revenue mobilisation is not just tax-based, you have non-tax revenue mobilisations which are also coming up. For three years now, we have been talking about asset monetisation, which is not selling of assets but optimum utilisation of those assets which are lying in the form of unutilised stadiums or land which is available with PSUs which can be utilised for better purposes," she added.

Former Bihar chief minister and RJD leader Rabri Devi expressed her dissatisfaction with the Rs 26,000 crore support allocated to Bihar for the development of crucial projects, including road connectivity and infrastructure, calling it a "jhunjhuna."

"Farmers' fertilisers and seeds should be made cheaper, and inflation should be stopped. The costs of petrol and diesel are high and farmers don't even get electricity. Rs 26,000 crore allotted to Bihar is a 'jhunjhuna," said the RJD leader.

In an interview with ANI, she highlighted various issues plaguing the state, such as displacement due to floods, loss of homes and belongings, prevalence of crimes, lack of employment opportunities for youth, unfair wages for labourers, and farmers' concerns regarding high costs of agricultural inputs and lack of electricity.

Anirudh A Damani -Managing Partner - Artha Venture Fund said: "The removal of the angel tax will make it significantly easier for us to complete transactions faster and streamline the investment process. Previously, the requirement for income tax officers to understand and assess valuations led to unnecessary conflicts and delays, involving CAs, valuers, and tax officials. Valuation assessments were never meant to fall within the purview of income tax officers, and this change eliminates those complications. This simplification allows us to focus on our primary job—investing in and supporting innovative startups—without the burden of navigating through cumbersome tax regulations.

As a venture capital fund, we see the Indian Budget 2024’s tax reforms as a major boost for the VC, PE, and startup ecosystem. The increase in LTCG tax rate for financial assets to 12.50% and STCG to 20% may pose challenges for listed investments. Still, it’s a significant advantage for other financial products like startups and Alternative Investment Funds. The reduction in LTCG tax from 20% to 12.50% for these investments will result in substantial savings and increased IRR, fostering growth and innovation. While we await the detailed budget, this move is a long-awaited positive development that will make India an even more attractive destination for global investors and drive further growth in the venture capital and private equity sectors."

Ratna Mehta - Managing Partner, Fundalogical Ventures said: "Abolition of angel tax will provide a boost to the budding Indian startup ecosystem. It will encourage the flow of capital without tax leakages, especially relevant at a time when the funding crunch is impacting startup liquidity. It is key to establish India as an innovation hub and leader v. follower for new and breakthrough ideas. Focus of the budget is on sustainable growth with employment generation, of continuity and stability. The changes on the capital gains tax structure was unexpected, especially during a time when the fiscal position of the economy seems to be in check.

The logistics and supply chain is the lifeline of India's growth story. The budget's identification of infrastructure, manufacturing, and skilling as key areas for long-term development and subsequent allocation is a step in making India the logistics and manufacturing powerhouse of the world. As a fund focused on investing in supply chain and logistics, we are bullish on backing innovative entrepreneurs building the support ecosystem of India's supply chain. The government's move to set up E-commerce export hubs to be set up for enabling MSMEs to export their local products is a huge step in the direction of driving growth through innovation and building on new-age trends to drive MSME growth."

The government has set aside Rs 6.21 lakh crore for defence expenditure in the fiscal year 2024-25, marking an increase from the previous year's allocation of Rs 5.94 lakh crore. The capital outlay for the defence sector has been set at Rs 1.72 lakh crore.

The defence sector has been allocated 12.9 per cent of the total budget of the government of India for the financial year 2024-25, highlighting its significance in the overall budgetary framework.

The Defence Minister, Rajnath Singh expressed his gratitude to Sitharaman for allocating the highest amount of Rs 6,21,940.85 crore to the Ministry of Defence, which constitutes 12.9 per cent of the government's total budget for 2024-25.

As far as the allocation to the Ministry of Defence is concerned, I thank Finance Minister Nirmala Sitharaman for giving the highest allocation to the tune of Rs 6,21,940.85 crore, which is 12.9 per cent of the total budget of the government for 2024-25, Singh said on X.

"The capital outlay of Rs 1,72,000 crore will further strengthen the capabilities of Armed Forces. Earmarking of Rs 1,05,518.43 crore for domestic capital procurement will provide further impetus to Atmanibharta," he said.

"I am pleased that Border Roads have been given 30 per cent increase in allocation over the last budget under the capital head. This allocation of Rs 6,500 crore to BRO will further accelerate our border infrastructure," he added.

K N Balagopal, the Finance Minister of Kerala, strongly criticized the Union Budget for the 2024-25 financial year, labeling it as a "political exercise" designed to prolong the life of the NDA coalition at the Centre. He described the budget as being detrimental to both the people and the nation, failing to consider the requirements of various states, including the legitimate needs of Kerala.

According to Balagopal, the budget demonstrates that the Modi government is unqualified to discuss cooperative federalism. He expressed his profound dissatisfaction and disappointment with the Union budget, stating, "Once BJP opened its account in Kerala, they closed the account of the state."

Kerala had requested the Centre to announce a special package of Rs 24,000 crore for the southern state in the Union Budget 2024-25. However, the state's demands appear to have been overlooked in the presented budget.

The government has unveiled significant plans for Bihar and Andhra Pradesh, focusing on enhancing infrastructure and providing targeted financial assistance. These initiatives aim to bolster human resource development, improve infrastructure, and create economic opportunities in the eastern region, which includes Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.

The goal is to transform this area into a driving force for achieving a developed India. Moreover, the government has revealed its intention to establish corridors in Gaya, modeled after the Kashi Vishwanath project, as stated by the Finance Minister.

In a move to support the mobile phone industry, the government has reduced the basic customs duty on mobile phones and mobile chargers to 15%.
Furthermore, the Finance Minister expressed the government's commitment to further streamlining and rationalizing the GST tax structure. Additionally, she announced that the government would grant customs duty exemptions on 25 essential minerals.

FM said that "comprehensive development" of Vishnupad Temple at Gaya and Mahabodhi Temple at Bodh Gaya in Bihar will be supported, modelled on the successful Kashi Vishwanath Temple Corridor to transform them into "world class pilgrim and tourist destinations".

The department of empowerment of persons with disabilities (DEPwD) has been granted a total budget of Rs 1,225.27 crore for the fiscal year 2024-2025. This allocation represents a slight increase of 0.02 per cent compared to the revised estimate of Rs 1,225.01 crore from the previous year.

A substantial portion of the budget, amounting to Rs 615.33 crore, has been allocated to the National Program for the Welfare of Persons with Disabilities for this fiscal year.

Andhra Pradesh chief minister N Chandrababu Naidu expressed his gratitude to the Central government on Tuesday for acknowledging the state's requirements in the Union Budget for the fiscal year 2024-25. The budget, presented by Sitharaman, allocated Rs 15,000 crore as special financial support for a capital city, pledged "full commitment" to the Polavaram project, and provided funds for infrastructure and backward areas.

Thanking the Union Finance Minister, the Chief Minister noted that the support from the Centre will go a long way towards rebuilding Andhra Pradesh.

"On behalf of the people of Andhra Pradesh, I thank Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for recognising the needs of our state and focusing on a capital, Polavaram, industrial nodes and development of backward areas in AP (Andhra Pradesh) in the union budget of FY 24-25," said Naidu in a post on X.

Further, he congratulated Sitharaman for presenting a "progressive and confidence-boosting budget."

Rahul Gandhi said, the recently announced budget, dubbed the "Kursi Bachao Budget," appears to prioritize political survival over the welfare of the nation. The government seems to be making empty assurances to its allies, potentially at the expense of other states' interests, in an attempt to maintain its grip on power.

:"Kursi Bachao Budget.

- Appease Allies: Hollow promises to them at the cost of other states.

- Appease Cronies: Benefits to AA with no relief for the common Indian.

- Copy and Paste: Congress manifesto and previous budgets." Rahul posted on X.

Nirmala Sitharaman on 12.5% tax on long-term capital gains, said, "...We wanted to simplify the approach to taxation - also for the capital gains. Second, if anything, the average taxation has actually come down when we say it is 12.5%. We have worked out for each of the different asset classes...The point that we brought it down from below the average to 12.5% encourages investment in the markets."

Mallikarjun Kharge, the Congress president, criticized the Union Budget on Tuesday, labeling it a "copycat" and claiming that it fails to promote the nation's progress and instead aims to protect the Modi government. The Budget for 2024-25, presented by Union finance minister Nirmala Sitharaman, marked her seventh consecutive budget, surpassing the record held by former prime minister Morarji Desai.

In a Hindi post on X, Kharge expressed his dissatisfaction, saying, "The Modi government's 'copycat budget' could not even copy the Congress' Nyay Patra properly! The Modi government's budget is distributing half-hearted 'rewadis (freebies)' to dupe its coalition partners so that the NDA survives."

In a press conference following the Budget announcement, Sitharaman emphasized the necessity to expand India's tax base. She reiterated the government's stance on broadening the tax net, which encompasses both direct and indirect taxation.

"The attempt to widen the tax net is something which we have been repeatedly saying... that India's tax net will have to be widened whether it is in the direct taxation and indirect taxation. Second, there are also now the PSU dividends that have been improving because their valuations have gone up really, and their performance has also increased. So, revenue mobilisation is not just tax based, you have non-tax revenue mobilisation which are also coming up," said FM Nirmala Sitharama in post-Budget press conference.

The Rashtriya Janata Dal (RJD) expressed disappointment with the Union Budget on Tuesday, arguing that the allocation of Rs 26,000 crore to Bihar primarily benefits the corporate sector rather than the common people. Bhai Virendra, a four-time RJD MLA from the Maner assembly constituency, voiced his concerns about the budget's priorities.

"This budget is only for the corporate sector," Virendra said

"As far as the allocation to Ministry of Defence is concerned, I thank the Finance Minister for giving the highest allocation to the tune of Rs 6,21,940.85 Crore, which is 12.9 % of total Budget of GoI for FY 2024-25," he said taking to X.

"The capital outlay of Rs 1,72,000 Crore will further strengthen the capabilities of Armed Forces. Earmarking of Rs, 1,05,518.43 Crore for domestic capital procurement will provide further impetus to Atmanibharta," he added.

"I am pleased that Border Roads have been given 30% increase in allocation over the last budget under the capital head. This allocation of Rs 6,500 Crore to BRO will further accelerate our Border Infrastructure. To boost the startup ecosystem in Defence Industries, Rs 518 crore has been allocated to iDEX scheme to fund technological solutions given by startups, MSMEs and innovators," he said.

The Prime Minister said "This Budget strengthens every section of the society. It takes the country's poor, village and farmer on the path of prosperity. In the last 10 years, 25 crore people have come out of poverty. This is a budget of continuity of empowerment of the new middle class. The youth will get unlimited opportunities from this budget. Education and skill will get a new scale from this budget."

"This budget will give power to the new middle class...This budget will help women, small businessmen, MSMEs," he added

In a recent press conference, Union Finance Minister Nirmala Sitharaman discussed the changes to capital gains taxation in the Union Budget 2024. She emphasized the government's intention to streamline the taxation process, particularly for capital gains.

"We wanted to simplify the approach to taxation, also for the capital gains. Second, if anything, the average taxation actual has come down. When we say it is 12.5 per cent, because we have worked out for each of the different classes... But the point is that we have brought it down from below average to 12.5 per cent, which is the lowest if you look at several years, encourages investment in the market," said Nirmala Sitharaman at a press conference.

"The first Budget of Narendra Modi's third term as the Prime Minister was announced today by our Finance Minister Nirmala Sitharaman. This Budget is history. It focuses on agriculture and employment. Rs 1.52 lakh crore has been allocated for these sectors. This will help in the development of these sectors," said Chhattisgarh CM Vishnu Deo Sai.

"We wanted to simplify the approach to taxation, also for the capital gains. Second, if anything, the average taxation actual has come down. When we say it is 12.5 per cent, because we have worked out for each of the different classes... But the point is that we have brought it down from below average to 12.5 per cent, which is the lowest if you look at several years, encourages investment in the market," said Sitharaman.

In her Budget speech for 2024-25, Finance Minister Nirmala Sitharaman announced that the borrowing cap under the MUDRA scheme will be increased to Rs 20 lakh, which is double the current limit. Additionally, she unveiled a new initiative aimed at providing internship opportunities to 1 crore young people in the top 500 companies over the next five years.

The finance minister also stated that the government will encourage the development of investment-ready industrial parks in 100 cities across the country. Moreover, to cater to the housing needs of industrial workers, the Centre will support the creation of dormitory-style rental housing through public-private partnerships (PPP).

Sitharaman further revealed that the government plans to initiate the auction of the first offshore mining blocks and establish a Critical Mineral Mission to secure assets in other countries. Lastly, she allocated Rs 20,000 crore for highway development projects in the state of Bihar.

In her Budget speech for 2024-25, Sitharaman announced several changes to the basic customs duty rates for various commodities. The duty on gold and silver will be reduced to 6 per cent, while platinum will see a reduction to 6.4 per cent. Additionally, the basic customs duty on ferronickel and blister copper will be removed entirely.

The finance minister also proposed lowering the basic customs duty on specific brood stocks, shrimps, and fish feed to 5 per cent. These reductions are expected to benefit the respective industries and boost their growth.

However, not all commodities will see a decrease in customs duty. Sitharaman announced that the duty on ammonium nitrate will be increased to 10 per cent, and non-biodegradable plastics will face a higher duty of 25 per cent. These measures aim to discourage the use of environmentally harmful products and promote sustainable alternatives.

In a move to support Micro, Small, and Medium Enterprises (MSMEs), the government plans to establish e-commerce export hubs through public-private partnerships. These hubs will provide a platform for MSMEs to sell their products and expand their reach in the global market.

The Union health ministry's budget allocation for the fiscal year 2024-2025 has been set at Rs 90,958.63 crore, marking a 12.96 per cent increase from the revised estimates of Rs 80,517.62 crore for the previous year.

In a move to provide relief to cancer patients, FM Nirmala Sitharaman announced three additional cancer treatment drugs - "Trastuzumab Deruxtecan, Osimertinib and Durvalumab" - will be fully exempt from Customs duties.

"To provide relief to cancer patients, I propose to fully exempt three more medicines from Customs duties. I also propose changes in the BCD (Basic Customs Duty) on X-Ray tubes and flat panel detectors for use in medical X-Ray machines under the Phased Manufacturing Program," Sitharaman said.

Finance Minister Nirmala Sitharaman presented the Union Budget for 2024-25, focusing on key priorities to drive economic growth and create opportunities. The nine priority areas include agriculture, employment and skilling, inclusive human resource development, social justice, manufacturing and services, urban development, energy security, infrastructure, innovation, research and development, and next-generation reforms.

The first priority focuses on raising agricultural productivity through climate-resilient varieties, supporting natural farming for 2 crore farmers in the next two years, achieving self-sufficiency in oilseeds, promoting large-scale vegetable production clusters, and expanding the coverage of farmers and their land under the DPI in Agri Infrastructure within three years. Additionally, a digital crop survey will be conducted in 400 districts this year, and Jan Samarth-based certificates will be issued.

The second priority introduces the First Timers Scheme, providing a 1-month wage to all persons newly entering the workforce in formal sectors, with direct benefit transfers up to Rs 15,000 in three installments for those earning up to Rs 1 lakh per month, benefiting 2.1 crore youth. Manufacturing Jobs Assistance will offer incentives to employees and employers in the first four years of employment, benefiting 30 lakh youth and employers. Support to employers will be provided through an additional Rs 3,000 per month for two years to cover EPFO charges for additional employment in all sectors within a salary of Rs 1 lakh per month, incentivizing the employment of up to 50 lakh persons. Furthermore, 20 lakh youth will be skilled over five years, and financial support up to Rs 10 lakhs will be provided for higher education in domestic institutions, with an annual interest subvention of 3%.

The third priority encompasses PM Vishwakarma, Swanidhi, and NRLM, along with Purvodaya, a plan for the all-round development of the eastern region, including Bihar, Jharkhand, Odisha, and Andhra Pradesh, with a focus on human resource development.