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Recently Union Budget of the Year 2024 was passed and announced by Finance Minister Nirmala Sitaraman.  This time with the theme of Viksit Bharat, it has led an ambitious roadmap for our nation’s progress. With ample of changes being aimed at boosting the economy, to address the key factors, youth and addressing the stakeholders as well. The budget is aimed to make a developed India.  

Let’s discuss some of the key highlights and the impacts which will affect the economy in either-ways.   

Growth and Fiscal Deficit  

As said above the prime focus is on the growth of economy and this time government has a GDP growth rate of 7.5%. for this upcoming fiscal year. The plan is to support growth, investments for infrastructure, technology and healthcare and fiscal deficit is planned to be reduced to 5.5% of GDP. Which will eventually showcase a balance in spending and fiscal responsibility.  

Tax  

There are several changes to both the form of taxes. Personal income tax and corporate tax.  

The changes in personal income tax are made to provide a relief to middle class families. The exemption limit has been raised and new tax slabs has been introduced to make the system more progressive.   

Corporate Tax  

There is reduction in the corporate tax for SMEs. By this it is expected to stimulate SME sector as this sector is a significant and major contributor to the economic growth and employment.  

Infrastructure  

Government has announced a massive expenditure on infrastructure development which focuses on roads, railways and urban infrastructure. Government has announced two projects named as Bharatmala and Sagarmala.  

Sustainability and Renewable Energy 

According to global commitments to curb the drastic climate change, the budget has put more weight on renewable energy and sustainability. Among the key areas of emphasis henceforth are solar, wind and other forms of renewable energy sources. All this is beside perks, the government has introduced for greener technologies in businesses to minimize carbon emissions. 

Digital transformation 

It has laid much emphasis on digital transformation in many sectors. These range from extending broadband connectivity to gram panchayats and incentivizing digital payment to promoting the use of technology in governance. Digital India Programs like these would get a fillip to make India into a digitally empowered society. 

Conclusion 

The Union Budget 2024 retains an inclination toward the very grassroots of economic growth with fiscal prudence while following a balanced approach. The government projected large investments in infrastructure, health, education and digital transformation, laying the stage for economic resilience and inclusivity. Moreover, the emphasis on tax reforms, support to SMEs and a focus on renewable energy further underscores the commitment of the Government to sustainable development and long-term prosperity.