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    Budget 2024

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    kolkatacareerlauncher
    The budget focuses on growth through increased infrastructure spending, fiscal consolidation, and governance reforms. Key aspects include a 25% increase in capital expenditure, emphasis on roads, railways and defense infrastructure, and boosts to renewable energy. Fiscal deficits are on track to improve and expenditure quality is rising. The budget also aims to increase credit availability, boost manufacturing, and support rural development and agriculture through various schemes.

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    Budget 2024

    Uploaded by

    kolkatacareerlauncher
    19 views21 pages
    The budget focuses on growth through increased infrastructure spending, fiscal consolidation, and governance reforms. Key aspects include a 25% increase in capital expenditure, emphasis on roads, railways and defense infrastructure, and boosts to renewable energy. Fiscal deficits are on track to improve and expenditure quality is rising. The budget also aims to increase credit availability, boost manufacturing, and support rural development and agriculture through various schemes.

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    BUDGET 2024

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    The budget focuses on growth through increased infrastructure spending, fiscal consolidation, and governance reforms. Key aspects include a 25% increase in capital expenditure, emphasis on roads, railways and defense infrastructure, and boosts to renewable energy. Fiscal deficits are on track to improve and expenditure quality is rising. The budget also aims to increase credit availability, boost manufacturing, and support rural development and agriculture through various schemes.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    19 views21 pages

    Budget 2024

    Uploaded by

    kolkatacareerlauncher
    The budget focuses on growth through increased infrastructure spending, fiscal consolidation, and governance reforms. Key aspects include a 25% increase in capital expenditure, emphasis on roads, railways and defense infrastructure, and boosts to renewable energy. Fiscal deficits are on track to improve and expenditure quality is rising. The budget also aims to increase credit availability, boost manufacturing, and support rural development and agriculture through various schemes.

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    You are on page 1of 21

    BUDGET 2023

    BREAKUP OF INCOME
    FISCAL DEFICITS: IMPROVEMENT ON TRACK
    QUALITY OF EXPENDITURE IMPROVING
    CAPEX INCREASE
    B.I.G. Budget For Growth & Employment

     Banks- Credit Demand would increase due to a boost in Infrastructure-


     Infrastructure- ₹10Tn Capital investment outlay increase of 3x the outlay of
    FY20, ₹2.4Tn Capex allocated to Railway , ₹790Bn under PM Awas Yojana
    Fund
     Green Growth- ₹100Bn to set up Compressed natural gas (CNG) plants,
    ₹350Bn for energy transition by MoPNG
    FOCUS ON 3Gs

     Growth - Fiscal consolidation & Infrastructure spending


     Governance - Improving Tax Compliance
     Green - Energy independence through green energy
     Higher spending on Infrastructure than expectations to help Capex and
    Growth
     Consumption to get a boost - Tax cuts
     Multiplier effect on growth by pulling in private investment
    Nudge To Move To New Tax Regime

    Proposed changes under New Tax Regime (Default Option)


    • Tax rebate limit raised to ₹7 lakh from ₹5 lakh i.e. No tax if you earn less than 7 Lakh per year
    • Introduction of standard deduction of INR 50,000 from salary and INR 15,000 from family pension
    • Surcharge on annual income above 5 crores reduced from 37% to 25% i.e. max tax with surcharge will be
    39% (current tax 42.74%,highest in world)
    CONSISTENT, CREDIBLE AND PRUDENT

     Focus on investments and long-term growth maintained


     Fiscal discipline and consolidation intact:
     Lower thrust on consumption spends
     Credible estimates:
    Key Policy Announcement

     To provide boost to the agriculture sector: a) Digital public infrastructure for


    agriculture will be built as an open source; b) Agriculture Accelerator Fund
    will be set-up to encourage agri-startups by young entrepreneurs ; c)
    Atmanirbhar Clean Plant Program will be launched to boost the horticulture
    crops; e) the Indian Institute of Millet Research, Hyderabad will be supported
    as the Centre of Excellence for sharing best practices, research and
    techonlogies at international level to make India a global hub for millets.
     Taking forward the cooperative-based economic development model,
    government plans to set up massive decentralised storage capacity that will
    help farmers store their produce and realize remunerative prices through sale
    at appropriate times.
     To eliminate Sickle Cell Anaemia by 2047, a mission will be launched that will
    entail awareness creation, universal screening of 70 mn people in the age
    group of 0-40 years in affected tribal areas, and counselling through
    collaborative efforts of central ministries and state government.
     To improve the socio-economic condition of the particularly vulnerable tribal
    groups (PVTGs), Pradhan Mantri PVTG Development Mission was announced,
    with an outlay of INR 150 bn
     To empower the youth in the country, various schemes were announced
    focusing on skilling the youth o Pradhan Mantri Kaushal Vikas Yojana 4.0 to be
    launched with emphasis on (i) On-job training, (ii) industry partnership, and
    (iii) alignment of courses with needs of industry.
     To boost the logistic sector, 100 critical transport infrastructure projects, for
    last and first mile connectivity for ports, coal, steel, fertilizer, and food
    grains sectors have been identified, with an investment outlay of INR 750 bn,
    including INR 150 bn from private sources
     To transform cities into ‘sustainable cities of tomorrow’, states and cities will
    be encouraged to undertake urban planning reforms and actions through
    efficient use of land resources, adequate resources for urban infrastructure,
    transit-oriented development, enhanced availability and affordability of
    urban land, and opportunities for all.
     The government announced an Urban Infrastructure Development Fund (UIDF)
    through the use of priority sector lending shortfall, which will be managed by
    the National Housing Bank. The fund will be used by public agencies to create
    urban infrastructure in Tier 2 and Tier 3 cities.
     To support MSMEs, government announced a revamped credit gurantee
    scheme through an infusion of INR 90 bn to the corpus. o The scheme would
    enable additional collateral-free guranteed credit of INR 2 tn.
     The government announced the continuation of 50-year interest free loan to
    state governments for one more year to spur investment in infrastructure,
    earmarks INR 1.3 trn in FY24BE for this purpose.
     The government announced ‘Mahila Samman Savings Certificate’ for a two-
    year period up to March 2025. It offers deposit facility upto INR 0.2 mn in the
    name of women or girls for a tenor of 2 years at fixed interest rate of 7.5%
    with partial withdrawal option.
     To enhance ease of doing business, more than 39,000 compliances have been
    reduced and more than 3,400 legal provisions have been decriminalized.
     To give a boost to the tourism sector and enhance tourism experience, atleast 50
    destination will be selected, wherein all the aspects of the destination to be made
    available on an App
     The government announced ‘Green Credit Programme’ to incentivize
    environmentally sustainable and responsive actions by companies, individuals and
    local bodies, and help mobilize additional resources for such activities
     The government announced INR 350 bn for priority capital investments towards
    energy transition and net zero objectives, and energy security by Ministry of
    Petroleum & Natural Gas.
     To support development of Artificial Intelligence in India, government announced
    three centres of excellence to be set-up in top educational institutions.
    SECTORWISE DETAILS- AUTOMOBILE

     Push towards net zero, clean tech and green mobility led by EVs
     The government wants to promote battery manufacturing via reduction of
    duty in capital goods w.r.t to lithium-ion cell manufacturing.
     Adequate support to be provided for scrappage of old vehicles at both Centre
    and state levels.
     25% increase in road infrastructure outlay
    AGRI

     Fertilizer allocation for nutrient based subsidy (NBS) is down 38% from revised
    estimates to Rs 440bn while for Urea is down 14.9% from revised estimates to
    Rs 1.3trn.
     The agriculture credit target has been increased to ~Rs20 trillion with focus
    on animal husbandry, dairy and fisheries.
    MSME FINANCING

     a) Credit guarantee allocation of Rs 90bn effective 1st April 2023


     b)Entity DigiLocker for MSME
     Vehicle replacement
     Higher Capital Expenditure – Capital investment outlay increased by ~25% to
    Rs 13.4t
     Pradhan Mantri Awas Yojana (PMAY) allocation increased by 66bn/4% YoY from
    FY23 BE/RE to Rs 790bn
    Insurance/Non banking
    financials/Mutual Funds
     Life Insurance: Proceeds from premium paid on insurance policies (ex ULIP)
    exceeding Rs 0.5mn in a year will be taxable (Except in case of death benefit)
     Income from Market linked Debentures (MLD) to be taxed at short term
    capital gain (STCG)
     New Tax regime to be made default tax regime progressively
     MLD Taxation
    Infrastructure

     25% increase in capex spending. Key focus sectors include Roads (25% YoY),
    Railways (15% YoY) and Defence (8% YoY).
     NHAI spending increased by 14.5% to 1.6 trn
     Strong capex growth (+55% YoY) in allocation to Ministry of Road Transport and
    Highways (MORTH)
     No borrowings have been budgeted for NHAI in FY24 similar to FY23
     Railways capex increased by 15% to Rs 2.9 trn Majority of spending is through
    budget vs IEBR
     Defence expenditure increased by 8.4% to Rs 1.66 trn
    Consumer staples

     Changes in the new tax regime: Income up to Rs 3 lakh will be tax-exempt.


    Those with income of up to Rs 7 lakh will get a rebate
     Allocations to most rural schemes have not seen a meaningful increase
    Chemicals

     Focus on Make in India through reduction in input cost and incentive to new
    energy sectors.
     Govt. reduced Basic Custom Duty on raw materials like Denatured Ethyl
    Alcohol, Acid grade fluorspar, crude glycerin, Vinyl Chloride and others.
     Emphasis on battery energy storage systems with a capacity of 4,000 MWH
    will be supported with VGF. BCD exemption have been extended on lithium-
    ion cells, EVA sheet/solar tempered glass used in solar cells or modules by one
    year.

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