Indian Finance Minister Nirmala Sitharaman presented the full budget for the current financial year 2024-25 on Tuesday. This is her seventh consecutive budget. In this budget, the government has focused on job creation, skill development, strengthening infrastructure, and reforms for the next generation.
While presenting the budget in the Lok Sabha, Sitharaman said that the people of India have once again shown their trust in the Narendra Modi government by re-electing it for a third term. Sitharaman mentioned that while the global economy is still grappling with policy uncertainty, India’s economic growth continues. She said that the country’s inflation remains stable and is moving towards 4%. The core inflation stands at 3.1%.
Changes in Tax Slabs
The budget has attempted to win the hearts of the middle class by providing relief in the income tax slabs. Finance Minister Nirmala Sitharaman announced in her budget speech that the standard tax deduction is increased from ₹50,000 to ₹75,000. Additionally, there will be no tax on annual income up to ₹3 lakh. Income from ₹3 lakh to ₹7 lakh will be taxed at 5%, while income from ₹7 lakh to ₹10 lakh will be taxed at 10%. Those with an income between ₹10 lakh and ₹12 lakh will be taxed at 15%, and income between ₹12 lakh and ₹15 lakh will be taxed at 20%. Annual income above ₹15 lakh will be taxed at 30%.
Announcement of Internship Plan
Finance Minister Nirmala Sitharaman said, “The government will launch a scheme to provide internship opportunities to 10 million youths in 500 top companies, offering an internship stipend of ₹5,000 per month and a one-time assistance of ₹6,000.”
In the budget, items that became cheaper: cancer drugs, gold and silver, platinum, mobile phones, mobile chargers, electrical wires, X-ray machines, solar sets, leather, and seafood. The customs duty on mobile phones and chargers has been reduced to 15%. The customs duty on gold and silver jewellery has been reduced to 6%.
Prices will increase for: cigarettes, air travel, plastic items, and petrochemicals.
The budget presented by Union Finance Minister Nirmala Sitharaman focuses on employment, skill development, agriculture, and manufacturing, providing a roadmap for a “Developed India” by 2047. The first budget under Modi 3.0 outlines an economic perspective. This is the 13thconsecutive budget of the Modi government since 2014, including two interim budgets.