Budget 2024 : Biggest mistake of the Modi govt? | Complete analysis

Summary

The 2024 Indian Union Budget, presented by the Finance Minister, focuses on employment, skilling, MSMEs, farmers, and the middle class. Criticisms include insufficient job creation strategies, increased capital gains tax, and perceived political favoritism in state allocations. The budget also emphasizes sectors like renewable energy, FMCG, and pharmaceuticals, potentially impacting related stocks.

Takeaways

• 📈 The Finance Minister of India presented the 7th consecutive Union budget for 2024-2025, focusing on four major themes: employment and skilling, MSMEs, farmers and rural development, and the middle class.
• 💼 The budget aims to facilitate employment, skilling, and opportunities for 4.1 crore youth over a 5-year period with a central outlay of 2 lakh crores, but the speaker criticizes the approach as not addressing the root issue of skill and education.
• 🏭 The government plans to incentivize job creation in manufacturing and provide support for employers creating additional employment opportunities, with a focus on improving the skill set of freshers.
• 💡 A new credit guarantee scheme for MSMEs in the manufacturing sector is introduced, along with measures to streamline credit assessment and support businesses at risk of default.
• 🌱 The budget emphasizes research and new age farming, aiming to introduce 100 new high-yielding climate-resilient varieties of 32 crops to boost agricultural output.
• 🌳 Support for natural farming is included, with plans to teach 1 crore farmers natural farming techniques and establish 10,000 research centers for necessary inputs.
• 🚗 The government is bullish on the rural economy, with increased spending on agriculture and rural development, aiming to improve infrastructure and connectivity in villages.
• 💼 The new tax regime proposes revised personal income tax slabs, potentially reducing the tax burden on salaried employees, but also increases capital gains tax, causing controversy among the middle class.
• 🏦 The budget shows a reduction in fiscal deficit and a decrease in borrowings as a percentage of revenue, indicating better financial management by the government.
• 🏛️ Special allocations for states like Andhra Pradesh and Bihar are highlighted, but there is criticism over the perceived neglect of other states like Manipur.

Q & A

What was the significance of the 7th consecutive Union budget presented by the Finance Minister of India on 23rd July 2024?

The 7th consecutive Union budget presented on 23rd July 2024 was significant as it was the first after the elections and showcased the government's financial plan and priorities for the upcoming fiscal year. It was also notable for being the most consecutive budget speeches by any Finance Minister in India.

What are the four major themes the government focused on in the 2024 Union budget?

The four major themes the government focused on in the 2024 Union budget are employment and skilling, MSMEs (Micro, Small and Medium Enterprises), farmers and rural development, and the middle class.

What is the government's vision for employment and skilling in the 2024 Union budget?

The government's vision for employment and skilling in the 2024 Union budget is to facilitate employment, skilling, and opportunities for 4.1 crore youth over a 5-year period with a central outlay of 2 lakh crores.

How does the budget address the unemployment situation in India?

The budget addresses the unemployment situation by proposing schemes for first-time job entrants, job creation in the manufacturing sector, employer-focused schemes for additional employment opportunities, and setting up working hostels to increase women's participation in the workforce.

What are the criticisms regarding the budget's approach to job creation?

The criticisms include the argument that the budget's approach to job creation is insufficient and lacks creative ideas for generating more jobs in the economy. Critics also argue that the focus should be on skill and education rather than financial incentives.

What is the government's strategy for MSMEs in the 2024 Union budget?

The government's strategy for MSMEs includes a credit guarantee scheme, a new assessment model for public sector banks, continued funding for MSMEs at risk of default, reducing the turnover threshold for trade receivables into cash, and setting up export hubs to facilitate international trade.

How does the budget plan to support the rural economy and farmers?

The budget plans to support the rural economy and farmers by increasing agricultural spending, focusing on research for new age farming, promoting natural farming, providing connectivity to villages under the Pradhanmantri Gram Sadak Yojana, and introducing high-yielding climate-resilient varieties of crops.

What are the tax changes proposed in the 2024 Union budget?

The tax changes proposed in the 2024 Union budget include revised personal income tax slabs aimed at reducing the tax burden on salaried employees, an increase in the standard deduction, and an increase in short-term and long-term capital gains tax.

What is the controversy regarding state allocations in the 2024 Union budget?

The controversy regarding state allocations in the 2024 Union budget is the perceived political favoritism towards Andhra Pradesh and Bihar, with critics arguing that other states like Manipur, which are facing financial crises, have not received significant mention or funding.

How does the budget address the fiscal deficit and financial management of India?

The budget addresses the fiscal deficit and financial management by reducing the fiscal deficit from 99.2% post-COVID to 4.9% in the coming year, decreasing the revenue from borrowings, and reducing the debt to GDP ratio.

What sectors are expected to benefit from the 2024 Union budget?

Sectors expected to benefit from the 2024 Union budget include renewable energy, FMCG (Fast-Moving Consumer Goods), gold and silver companies, and the pharmaceutical industry.