budget 2024 live updates : Direct and Indirect tax rates
In a pivotal move, the Indian government has announced its budget for the fiscal year 2024-25, outlining a series of measures aimed at fostering economic growth, providing relief to taxpayers, and addressing demographic challenges. The budget, presented by Finance Minister XYZ, reflects a delicate balance between fiscal prudence and the need for strategic investments to propel the nation forward.
One of the key highlights of the budget is the stability in direct and indirect tax rates. Maintaining continuity, the government has refrained from introducing any changes, offering a sense of predictability for businesses and individuals alike. Additionally, a significant relief measure has been implemented with the withdrawal of income tax demands for amounts up to ₹25,000 until the financial year 2009-10 and ₹10,000 from 2010-11 to 2014-15. This move is expected to benefit approximately one crore taxpayers, providing a welcome respite.
To address the housing needs of the middle class residing in rented accommodations, the government has unveiled a new scheme that facilitates the purchase or construction of their own houses. This initiative acknowledges the challenges faced by this segment of the population and aims to empower them on their journey to homeownership.
In a bid to stimulate innovation and entrepreneurial spirit, the government has extended tax benefits for start-ups and investments made by sovereign wealth or pension funds. This extension, valid until March 31, 2025, underscores the government’s commitment to fostering a conducive environment for economic growth and development.
Capital expenditure has been given a substantial boost, with an 11% increase, reaching ₹11.11-lakh crore. This significant allocation signals the government’s intent to invest in crucial infrastructure projects, thereby propelling economic activity and job creation.
The fiscal deficit projection for the financial year 2024-25 stands at 5.1%, lower than the revised estimate of 5.8% in the previous fiscal year. This demonstrates a commitment to fiscal discipline while ensuring adequate resources for developmental initiatives.
In terms of government borrowing, the announcement reflects a judicious approach, with ₹14.13-lakh crore earmarked for the next fiscal year, a reduction from ₹15.43 lakh crore in the previous year. This move is aligned with the government’s emphasis on responsible fiscal management.
Aiming for robust revenue mobilization, the budget sets ambitious targets. The gross tax revenue target for the fiscal year 2024-25 has been raised by 11.46% to ₹38.31-lakh crore, with a specific focus on direct tax collection at ₹21.99-lakh crore and indirect tax at ₹16.22-lakh crore.
In a transparency move, the government has announced the release of a white paper on the mismanagement of the economy prior to 2014. This document is expected to provide insights into the challenges faced and the corrective measures undertaken, offering a comprehensive understanding of the economic trajectory.
Looking ahead, the government envisions next-generation reforms that will be unveiled in consultation with states and stakeholders. This collaborative approach aims to incorporate diverse perspectives and ensure the inclusivity of policies that drive India’s future growth.
Recognizing the challenges posed by population growth and demographic changes, the government has taken a proactive stance by forming a high-powered panel to address these issues. This strategic move reflects a commitment to sustainable development and proactive management of demographic dynamics.
In conclusion, India’s budget for the fiscal year 2024-25 presents a comprehensive roadmap that balances fiscal discipline with targeted investments for growth. The emphasis on tax relief, infrastructure development, and future-oriented reforms underscores the government’s commitment to steering the nation towards a prosperous and sustainable future.
