Union budget 2024: Key announcements and implications

The Modi government, in a bid to decrease the tax burden on the common man, has modified the income tax slabs in the Union Budget for FY 24-25. As per the new regime, a progressive structure has been brought in which is as follows:-

- Income up to INR 3 lakh: No tax
- Income between INR 3 lakh and 7 lakh: 5 per cent tax
- Income between INR 7 lakh and 10 lakh: 10 per cent tax
- Income between INR 10 lakh and 12 lakh: 15 per cent tax
- Income above INR 15 lakh: 30 per cent tax

Increased limits on Mudra loans
The government increased the limits on the Mudra loan from INR 10 lakh to 20 lakh. This enhanced loan limit shall be given only to those people who availed of loans previously under the TARUN category and paid up their loans.

Lower mobile phone costs
In another major concession, FM Nirmala Sitharaman announced a 15 per cent reduction in the customs duty on mobile phones and chargers. With this reduction in customs duty, these electronic goods will get cheaper and result in gains for the consumer.

Support to organic farmers
In a mammoth initiative for organic farming, the budget has set a target to introduce one crore farmers to organic farming in the next two years. The government will also release 109 varieties of 32 different crops for the same.

Investment in education and skills
A good amount of INR 1.48 lakh crore has been provided to the education and employment sectors. This fund will lay emphasis on the skill development of the youth, thereby hitting at the much-proclaimed agenda of this government to improve the state's educational outcomes.

Financial support to Andhra Pradesh
Union Finance Minister Sitharaman gave Andhra Pradesh a special facilitation of INR 15,000 crore. Additional funding could come in future years to support the state's development projects.

Youth skilling initiatives
It has brought in five new schemes, all with an outlay of more than INR 2 lakh crore combined, for skilling the 4.1 crore youth and making them employable. These developments strongly mark the first time for the Center towards workforce readiness.

Inflation targets
The Minister expressed that, for now, the situation of inflation is within control and moving towards the goal of 4 per cent, thus showing a stable economic environment.

The Union Budget 2024 presented a slew of reliefs for lowering taxes, making finance more accessible, supporting agriculture and education, and promoting regional and youth development. All these initiatives, at one go, are bound to spur economic growth and bring about improved living standards in almost all sections of society.