Union Budget 2024: Tax relief, job boosts, and a spending surge

Nirmala Sitharaman displays a red pouch carrying Budget documents outside Finance Ministry. Pic/PTI

Finance Minister Nirmala Sitharaman on Tuesday announced income tax relief for the middle class, a Rs 2 lakh crore outlay for job creation schemes over the next five years and a spending splurge for states run by her party's new coalition partners as she unveiled Modi 3.0 government's first budget after the general elections.

With rural distress and unemployment being blamed for BJP losing its majority, Sitharaman in her seventh straight budget provided Rs 2.66 lakh crore for rural development and maintained spending on long-term infrastructure projects at Rs 11.11 lakh crore to boost economic growth.

She abolished ‘angel tax' for all classes of investors in startups, cut customs duty on mobile phones and gold and simplified capital gains tax. She, however, raised the securities transaction tax (STT) on futures and options of securities, which led to tanking of stock markets.

"India's economic growth continues to be the shining exception (in a world that is gripped by policy uncertainties) and will remain so in the years ahead," she said. "In this budget, we particularly focus on employment, skilling, MSMEs, and the middle class."

Kursi Bachao Budget: Rahul

Leader of Opposition in the Lok Sabha Rahul Gandhi on Tuesday dubbed the Union Budget a "kursi bachao budget" and claimed it makes "hollow promises" to BJP allies at the cost of other states.

The former Congress chief also claimed that the budget was "copy and paste" job of the Congress manifesto for 2024 polls and previous budgets. This is the first budget in Prime Minister Narendra Modi-led government's third term in office.

In a post on X, Gandhi said, " ‘Kursi Bachao' Budget. Appease Allies: Hollow promises to them at the cost of other states. Appease Cronies: Benefits to AA with no relief for the common Indian. Copy and Paste: Congress manifesto and previous budgets."

Modi hails budget as game-changer

PM Modi Tuesday hailed the Union Budget for its measures for every section of society, asserting that it has heralded better growth and a bright future. "The budget will act as a catalyst in making India the third-largest economy in the world and will lay a solid foundation for a developed India," he said in his televised remarks after Union Finance Minister Nirmala Sitharaman presented the budget in Parliament. "This visionary budget will uplift and empower every stratum of our society, paving the way for a brighter future for all," he said.

Andhra Pradesh gets Rs 15,000 crore boost

The government on Tuesday announced a series of measures for development of Andhra Pradesh, including arranging R15,000 crore this fiscal and in future years for development of the capital city of the state. Presenting Union Budget 2024-25, Finance Minister Nirmala Sitharaman said the government will also facilitate special financial support for development of the capital city. Besides, the Centre allocated over R3 lakh crore for schemes benefiting women and girls and stated that it is fully committed for completion and financing of Polavaram irrigation project. The minister also announced backward region grant for three districts of
the state. The Telugu Desam Party (TDP) is a key ally of the BJP in the Centre.

Bihar gets Rs 26,000cr for road projects

The Centre proposed an outlay of Rs 26,000 crore for various road projects in Bihar. In her Budget for 2024-25, Nirmala Sitharaman said the government will arrange financial assistance to Bihar through aid from multilateral development agencies. The government will also set up airports, medical colleges and sports infrastructure in Bihar, she said. The Centre will also formulate plan ‘Purvodaya' for all-round development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. Sitharaman further said the government will support industrial corridor for development in the eastern region. She also said govt will provide e-vouchers directly to 1 lakh students every year with interest subvention of 3 per cent of loan amount.

JD(U), TDP praise announcements for Bihar, AP

PM Modi with N Chandrababu Naidu and Nitish Kumar. File pic/PTI

BJP's allies from Bihar on Tuesday hailed Finance Minister Nirmala Sitharaman's host of announcements for the state as the Janata Dal (United) asserted that these measures will put it on the path to development and help it become ‘aatmanirbhar'. Another crucial BJP ally TDP also praised the budget's measures for Andhra Pradesh with Chief Minister N Chandrababu Naidu saying that it will go a long way towards building the state. In his reaction, Union minister and JD(U) leader Lalan Singh slammed the Opposition's claim that budget's measures for Bihar and Andhra are aimed at saving the government due to its dependence on regional parties from the states for survival.