The Honorable Finance Minister Nirmala Sitharaman recently presented the first budget of the current government. It set up an ambitious roadmap towards all-around prosperity. Employment, skilling, MSMEs, and the middle class were the focus of the budget. It introduces a Prime Minister’s package of five schemes. These schemes target 4.1 crore youth over a five-year period with a substantial central outlay of INR 2 Lakh crore. Additionally, INR 1.48 Lakh crore is allocated for education, employment, and skilling. The analysis of 2024 budget is as under:
National Highlights
The budget describes key priorities essential for the goal of a ‘Viksit Bharat’. All should have ample opportunities generated by these priorities.
1. Productivity and Resilience in Agriculture
Through research and innovation, we place a significant focus on transforming agriculture. We will introduce new, high-yielding and climate-resilient crop varieties. We aim to promote natural farming and involve 1 crore farmers. Additionally, a Digital Public Infrastructure (DPI) for agriculture will be established for ease and efficiency.
2. Employment and Skilling
For employment and skilling, there are, indeed, three schemes under the ‘Employment Linked Incentive.’ Firstly, the skilling program will train 20 lakh youth over five years. Additionally, it will also upgrade 1,000 ITIs, and furthermore, provide loans up to INR 7.5 Lakh. Moreover, special provisions are made to enhance the participation of women in the workforce.”
3. Inclusive Human Resource Development and Social Justice
A saturation approach will ensure that all eligible individuals are covered under various programs. Craftsmen, artisans, and women entrepreneurs are given priority for schemes. The ‘Purvodaya’ initiative talks about the development in eastern states.
4. Taxation
Customs and direct taxes are adjusted to support various sectors. Key changes include exemptions for minerals, marine products, electronics, precious metals.
“ The Union Budget 2024 has introduced several pivotal changes in the income tax structure. It aims at simplifying the tax regime and encouraging greater taxpayer participation. These changes reflect the government’s effort to create a fair and easy-to-navigate tax environment.”
5. Impact on Salaried Professionals
Earnings up to ₹3 lakh are exempt. For ₹3-15 lakh, rates are reduced. Over ₹15 lakh, the rate is 30%. Savings can reach ₹5,000 for ₹3-7 lakh and ₹7,500 for over ₹12 lakh.
Under the new regime, earning ₹10 lakh annually saves ₹10,000. Standard deduction rises to ₹75,000. Short-term capital gains tax increases to 20%, long-term to 12.5%. Family pension deduction rises to ₹25,000, boosting tax savings and reducing taxable income.
6. Manufacturing and Services
Support for MSMEs includes, for instance, a credit guarantee scheme, a revised credit assessment, and, additionally, financial support. Furthermore, the budget proposes, specifically, Mudra loans and the establishment of E-Commerce Export Hubs.”
7. Urban Development
Cities are envisioned as growth hubs under the PM Awas Yojana Urban 2.0. This includes plans for creative redevelopment, transit-oriented development, and urban housing. Water supply, sewage treatment, and waste management projects will partner with state governments and development banks.
8. Energy Security
This, therefore, promotes energy transition with PM Surya Ghar Muft Bijli Yojana, pumped storage, and nuclear research. Moreover, the roadmap supports ‘hard to abate’ industries as well as traditional micro and small industries.”
10. Infrastructure
The government allocates INR 11.11 Lakh crore for capital expenditure; thus, it demonstrates a strong commitment to infrastructure. Additionally, PMGSY Phase IV will connect 25,000 rural habitations. Furthermore, tourism development initiatives will transform key locations into world-class destinations.
11. Innovation, Research & Development
The budget proposes the ANRF and a venture capital fund for the space economy.
12. Next Generation Reforms
The Economic Policy Framework will guide reforms, focusing on land, labor integration, and financial sector strategy.
How the 2024-25 Gujarat Budget Will Create Opportunities
Gujarat Finance Minister Kanu Desai hailed the Union Budget 2024.
Job Creation
- Education Sector: The budget allocates 55,114 crore to education. It will add 162 new secondary schools, and 45,000 smart classrooms. The Namo Saraswati Yojana offers ₹250 crore for science education. This will create teaching and support staff jobs.
- Healthcare Expansion: Includes new 300-bed hospitals in Ahmedabad and Surat, and hospitals in Bavla and Kamrej. This would provide employment to doctors, nursing and administrative staff. Besides, 319 ambulances will be deployed at Rs 76 crore. This would need drivers, paramedical persons and maintenance personnel.
- Urban Development: Eight cities will be promoted to Municipal Corporation status. This will create jobs in construction, urban planning, and public administration.
Entrepreneurial Support
- Women Empowerment Initiatives: The Namo Lakshmi Yojana receives Rs 1,250 crores for women’s economic empowerment. This shall provide support to 10 lakh female students and women entrepreneurs.
- Educational Loans for Non-Reserved: The non-reserved classes have been allocated Rs. 600 crore for educational loans. It will help aspiring entrepreneurs get the necessary education to start their businesses.
- Fisheries Modernization: The government gives Rs 627 crore for modernizing fish production centers and Rs 463 crore for fishermen’s welfare. Consequently, this promotes entrepreneurship in fisheries through new technology and sustainable practices.
Tourism Boost
- Gandhinagar Gift City Development: The development includes a 4.5 km riverfront and a full-fledged recreation zone. It will make this project highly interesting for tourists as well. Metro connectivity and Central Park facilities will attract more tourists and improve the city’s economy.
- Improved Connectivity: Furthermore, the expansion of the Ahmedabad-Gandhinagar metro route links Ahmedabad International Airport and Gift City. As a result, this will improve access to tourist destinations. Additionally, adding 2,000 new buses will ease state travel and boost tourism.
Environmental Conservation
- Nirmal Gujarat 2.0 Scheme: Rs 2500 crore for the Nirmal Gujarat 2.0 promotes cleanliness and conservation. This will enhance waste collection, disposal, and public participation in environmental responsibility.
- Green City Expansion in Gift City: We will implement a development from 900 to 3300 acres. Consequently, this makes Gift City a model of sustainable urban planning. Furthermore, green spaces, riverfront development, and “Walk to Work, Live and Play” will not only support conservation but also improve public lives.
Conclusion of 2024 Budget
The 2024 budget is a master plan toward developing growth, employment, and innovation. It will align us in the position for capitalization and ensure a bright future ahead. For Gujarat, it has opened a very wide canvas all around. Furthermore, this state is creating jobs through entrepreneurship and tourism. It promotes sustainable growth by investing in education, healthcare, urban development, and environmental conservation. Consequently, these efforts promise a prosperous and progressive future for Gujarat’s citizens.
Keep following Gujpreneur for more insightful information on entrepreneurship, culture, and innovation in Gujarat.
