Union Budget 2024-25 Date – Features, Focus sectors, Expected Tax Slab

Union Budget 2024-25

The Finance minister announced the union budget for the coming fiscal year of 2024. In the union budget 2024-25, the economic expenditure for FY2025 is mentioned. The seven priority sectors are also mentioned in this budget. The seven priorities are 7 pillars of saptarishi.

These 7 priorities are sustainable growth, financial sector, infrastructure & investment, unleash potential, youth power, reach to last mile, and inclusive development. The union budget 2024-25 will be presented on 1 February 2024 by the financial minister. All Indian citizens are excited about the union budget for FY25 because they expect that the upcoming budget will consist of beneficial schemes for them, awarding programs, and priorities.

Union Budget 2024-25 Release Date

Year	2024
Announced by	Financial Minister
Present Finance Minister	Nirmala Sitaraman
Announced on	1 February, 2024
Announce in	Assembly
Official Website	http://indiabudget.gov.in/

Budget 2024: Date, Time and Live Presentation

Finance Minister Nirmala Sitharaman will present the budget for the fiscal year 2024-2025 on 1 February 2024 at 11:00 am. You can view the real-time exhibit of the interim budget offered by Nirmala Sitharaman in the following ways.

• Doordarshan and Sansad TV offer a live telecast of the budget
• Sansad TV and doordarshan YouTube channel give you live telecast
• The Press Information Bureau (PIB) declares the budget online
• Various news networks, in addition to YouTube channels, telecast the live presentation of the budget

You can also visit the websites or apps of news channels to get updates about the upcoming Union budget in real-time.

Union Budget 2024-25 Expected Tax Slab

It is predicted that in this new Union Budget 2024-2025 Expected Tax Slab might be 5 just like the budget of 2023. It is expected that the tax limit exemption could be increased by using the finance minister up to 3.5 lakhs. According to the news,  it’s expected that all the individuals need to pay Rs. 0 as tax up to the Rs. 3.5 lakh earnings earned by using them in the year.

All the people who earned Rs. 3.5 lakhs to 6.5 Lakhs needed to pay a 5% tax of their total taxable income for the financial year. The person who earned Rs. 7 lakhs to 9.5 lakhs in fiscal year has to pay 10% tax on total taxable earnings of that financial year, and those who earned Rs. 9.5 lakh to 13 lakh has to pay 15%, all people that earned Rs. 13 lakhs to Rs. 16 lakhs to pay 20%, and Rs. 16 lakhs and above have to pay 30% tax on their total incomes of the fiscal year.

Earning	Tax Rate (Expected)
Up to the Rs. 3.5 lakh	Nil
Rs. 3.5 lakhs to 6.5 Lakhs	5%
Rs. 7 lakhs to 9.5 lakh	10%
Rs. 9.5 lakh to 13 lakh	15%
Rs. 13 lakhs to Rs. 16 lakhs	20%
Rs. 16 lakhs and above	30%

Expectations of Union Budget 2024

Here are the unique features of Budget 2024.

• Since the Lok Sabha elections are scheduled for early in the coming year, Union Finance Minister Nirmala Sitharaman will now not be making any big bulletins while she offers the Union Budget 2024 on 1 February.
• Following the general elections and the status quo of the new administration, the complete budget could be discovered.
• Estimates of spending, revenue, the financial deficit, fiscal year overall performance, and expectations for the subsequent fiscal year of modern-day management are generally protected in a specific budget.
• It can’t, however, contain any good-sized policy declarations.
• During the presentation of the Union Budget 2023–24, Nirmala Sitaraman made 5 significant bulletins regarding private income tax with the intention to help the country’s hardworking center class.
• The working middle class will significantly benefit from these announcements regarding rebates, a change in the tax form, an extension of the same old deduction benefit to the new tax regime, a discount within the maximum surcharge fee, and an extension of the limit of tax exemption, on go-away encashment at the retirement of non-government salaried employees.
• OFFICIAL WEBSITE http://indiabudget.gov.in/

Union Budget 2024-25 Important Metrics

On 1 February, Nirmala Sitharaman, the Finance Minister of India, will deliver the 6th budget in the meantime. It may be the ultimate one before the coming elections in April-May.

Thereafter, the ruling government will make the very last modifications to the Interim Budget in June. In the Union Budget 2024, the authorities pursue to build on the increased momentum of the beyond 2 years while retaining the fiscal budget.  

Budget Size

The most closely monitored aspect in advance of standard polls is the Budget length, which underscores the authorities’ fiscal assistance for the financial system and welfare programs. This metric reflects the dimensions of fiscal commitment and units the tone for economic priorities.

Capital Spending

Capital Spending is Owing to its vast multiplier impact. The authorities have stimulated investment-driven growth in the absence of a vast resurgence in non-public investment. This strategic method serves as a vital device for the revitalization of the economic system. Moreover, prioritizing capital expenditure fosters infrastructure development and creates an impact on standard financial expansion.

Nominal GDP Growth

This metric is especially tracked for the government’s sales assumptions and tax resilience. A higher growth enables the incorporation of the financial deficit ratio, which is a key thing influencing economic stability. Furthermore, a sturdy GDP growth not only boosts authorities’ sales but also strengthens the general fiscal foundation.

Fiscal Deficit

It reflects the budget’s economic surplus or deficit. It is calculated by way of deducting the authorities overall charges from its overall sales. The end result shows if the authorities have been able to adhere to their fiscal commitments or not.

Disinvestment

This metric signals the authorities privatization wants, contributing to the revenue mop-up. It is mainly relevant given current setbacks on the strategic sale front. In addition, disinvestment can streamline public quarter organizations, selling efficiency and including funds into the authority’s treasury.

Market Borrowing

The metric is carefully watched for its impact on interest rates and bond yields. In addition, it’s vital to word that immoderate authorities borrowing can crowd out personal players. Whilst, real market borrowing is vital to fund government initiatives without any disruptions in wide fiscal markets and personal region activities.

Net Tax Gap

It is essential to assess the government’s spending capacity without reducing the fiscal gap. Moreover, any shortfalls may also result in borrowing or spending cuts. The potential to fulfill tax targets immediately affects the authorities’s capacity to fund its applications and maintain a balanced budget.

RBI Dividend

While not explicitly mentioned in the Union Budget, it paperwork a part of ‘dividends and income’ and has helped to reduce the authorities’s fiscal gap. Though regularly ignored, it’s important to have impactful financial contributors. Utilizing RBI dividends responsibly can help manipulate budgetary pitfalls without doing high borrowing.

Why an Interim Budget?

Key motives, why an interim budget is presented as opposed to a complete budget in the year of Lok Sabha elections

Election guidelines

 Indian election rules save you, the outgoing authorities, from making financial announcements for the duration of the election marketing campaign duration.

Continuity of crucial year

An interim budget guarantees persistent investment for vital government services like salaries, defense, and current ongoing applications.

Limited policy changes

 Major policy reforms or giant modifications in taxation are typically)prevented in an interim budget to offer the incoming authorities the power to boost their own roadmap.

Fiscal prudence

 The outgoing authorities prioritize maintaining the fiscal year and managing the deficit in a period in between budgets, ensuring fiscal stability for the transition duration.

Short-time period outlook

 An interim budget covers only some months until the new authorities take the workplace, so it specializes in vital spending and avoids lengthy-term commitments.

Leveling the field

 An interim budget guarantees that the outgoing government does now not make any most important coverage decisions that might unfairly advantage particular sectors or organizations, preserving an honest and impartial environment for the approaching elections

Interim Budget vs Annual Budget

The annual budget, or the overall union budget, is an in-depth plan that covers the income and prices for the entire fiscal year. However, an interim budget is introduced at some point in an election year. It enables the manipulation of the budget of the country until the elections are held and the new government is made. Usually, an interim budget is announced in preference to a full union budget whilst there is an upcoming election.

The Ministry of Finance commenced the practice of creating the budget on 4 September 2023. It laid the base for the economic plans in the current fiscal year. The plans that are going into growing the Union budget display the dedication of the government to reduce financial challenges and discover solutions to assist fiscal increase.

Focus sectors of Union Budget 2024-25

The key sectors that will be centered on in Union Budget 2024-25 consist of

Social Welfare

Schemes like MGNREGA, meal safety packages, and pensions for normalized groups are predicted to peer endured investment to make sure earnings aid and fundamental wishes are met.

Agriculture

Continued investment in farmer welfare programs like PM Kisan Samman Nidhi and Pradhan Mantri Fasal Bima Yojana is probable.

Infrastructure

 Maintaining momentum in infrastructure improvement, mainly in areas like railways, roads, and renewable electricity, will be a concern.

Education and Healthcare

 Funding for existing schooling and healthcare applications like Ayushman Bharat Yojana is expected to be preserved.

Defense

 Maintaining good funding for defense needs could be a priority, given the geopolitical scenario.

Conclusion

The union budget 2024-25 is prepared by the Financial minister and is set to be presented in Lok Sabha on 1 February 2024. The unique features of the Union budget show that it focuses on critical areas like agriculture, defense, healthcare, education, and social welfare