Budget 2024 Detailed Analysis | Income Tax Slabs | Employment Incentives | Nirmala Sitharaman

CA Rahul Malodia: Business Coach

23 Jul 202412:09

Summary

TLDRThe video script discusses the first budget of Modi 3.0, highlighting its impact on various sectors post-election results. It delves into the benefits and drawbacks, focusing on sectors like the stock market, agriculture, and youth employment. The budget's size, tax adjustments, and schemes for the youth, poor, and farmers are analyzed, along with the reactions of political alliances and the stock market's performance. The summary also touches on the budget's implications for the middle class, tax reliefs, and the government's focus on sectors like infrastructure, innovation, and manufacturing.

Takeaways

📈 The budget reflects the impact of the election results, with clear benefits for certain sectors and individuals.
💼 The budget speech by Nirmala Sitharaman, the first for Modi 3.0, sets out the government's priorities and financial allocations.
📉 The market reacted negatively to the budget, with a drop of 1100 points, possibly due to increased taxes on the stock market.
💼 The budget aims to focus on nine sectors including agriculture, employment, urban development, infrastructure, innovation, manufacturing, services, energy, and next-generation reforms.
👨‍💼 For the youth and employment, the government plans to spend over 2 lakh crore to create job opportunities, directly affecting over 4 crore youth.
🏠 The budget includes allocations for the poor, with the continuation of free grain distribution and the expansion of the PM Awas Yojana for housing.
🌾 For farmers, a fund of 1,52,000 crore is allocated, with a target to educate more than 1 crore farmers in natural farming over the next two years.
👮‍♂️ Defense receives the largest budget allocation, with 62,000 crore aimed at strengthening the military and promoting self-reliant India.
📉 Some sectors like telecom equipment and plastic products saw an increase in duties, which could lead to higher costs for consumers.
📈 Several items and services became cheaper, including a reduction in import duties on gold and silver, which may stimulate retail demand.
🏛️ The budget also addresses the middle class, with no significant changes to the income tax regime, maintaining the old and new tax regimes.

Q & A

What was the key highlight of Modi 3.0's first budget?
-The budget reflects the impact of election results and includes various allocations and changes affecting different sectors, with a clear focus on youth employment, agriculture, and infrastructure.
What was the significant record set by Finance Minister Nirmala Sitharaman during the budget speech?
-Nirmala Sitharaman became the first finance minister to present the budget continuously for seven times, breaking Morarji Desai's previous record of six continuous budget presentations.
What were the major changes in tax policies affecting the stock market?
-The short-term capital gains tax was increased from 15% to 20%, the long-term capital gains tax from 10% to 12.5%, and the Securities Transaction Tax (STT) on F&O transactions was also raised, leading to a significant market reaction.
How did the budget address youth employment?
-The government announced five schemes with a total expenditure of over 2 lakh crore rupees, aiming to create employment opportunities for over 4 crore youths. Additionally, a program was introduced to provide internships in top 500 companies for 1 crore youths with a stipend of 5000 rupees per month.
What provisions were made for the poor in the budget?
-The Pradhan Mantri Garib Kalyan Anna Yojana was extended for another five years, benefiting 80 crore people. Additionally, 10 lakh crore rupees were allocated for the Pradhan Mantri Awas Yojana to build more than 3 crore houses.
What allocations were made for the agriculture sector?
-A fund of 1.52 lakh crore rupees was allocated for agriculture, with a target to teach natural farming to over 1 crore farmers within the next two years. Additionally, 2.66 lakh crore rupees were allocated for rural development.
How does the budget benefit women?
-The budget allocated 1 lakh crore rupees for various schemes benefiting women, aiming to support their welfare and development through different initiatives.
What changes were made for small businesses and MSMEs?
-The Mudra loan limit was increased from 10 lakh to 20 lakh rupees. Additionally, 24 new branches of SIDBI will be opened in major SME clusters to provide more loans, and the TDS on e-commerce transactions was reduced by 90% to 0.1%.
What were the major defense allocations in the budget?
-The defense sector received 13% of the total budget, amounting to 62,000 crore rupees. Additionally, a 1,000 crore rupee VC fund was launched for defense startups.
Which items became cheaper as per the budget?
-Customs duty on leather and related products, mobile phone parts and chargers, gold, silver, and platinum was reduced, making these items cheaper. Additionally, customs duty on three cancer treatment drugs was abolished, making cancer treatment more affordable.
Which items became more expensive due to the budget?
-Ammonium nitrate, telecom equipment (mostly imported from China), and plastic products saw increased duties, making them more expensive.
How did the budget benefit Bihar and Andhra Pradesh?
-Bihar received various projects including a new airport, medical college, expressways, a mega power plant, and flood relief funds totaling over 26,000 crore rupees. Andhra Pradesh was allocated 15,000 crore rupees for its new capital Amravati, along with additional funding for ongoing central government projects.

Outlines

00:00

💰 Modi 3.0's First Budget: Key Highlights and Market Impact

The budget presented by Nirmala Sitharaman, the first under Modi 3.0, is influenced by recent election results. It offers a detailed overview of what sectors benefited, which ones faced drawbacks, and the impact on the common man. The stock market reaction saw a significant drop, especially in PSU stocks, due to increased taxes on short-term and long-term capital gains, and STT on F&O trading. The budget also focuses on various sectors including agriculture, employment, urban development, infrastructure, innovation, manufacturing, and energy, with an emphasis on youth and employment schemes, promising substantial investment and internships for millions of young people.

05:02

🏡 Initiatives for the Poor and Farmers in the New Budget

The budget extends the Pradhan Mantri Garib Kalyan Anna Yojana for another five years, ensuring free grain distribution to 800 million people. A significant allocation of funds is made for housing, aiming to build over 3 million homes in urban and rural areas. For farmers, Rs. 152,000 crore is allocated with a focus on natural farming. Additionally, Rs. 2.66 lakh crore is allocated for rural development. Women's welfare receives Rs. 1 lakh crore through various schemes, while small traders benefit from increased loan limits and tax reliefs. The defense sector receives the largest allocation with Rs. 62,000 crore to strengthen military capabilities and support defense startups.

10:04

📚 Support for Students and Technological Advancements

The budget supports students by offering loans up to Rs. 10 lakh for higher education within India. It allocates Rs. 1,000 crore for startups in the space sector and plans significant capital expenditure on infrastructure projects like roads, bridges, and railways. For the middle class, the new tax regime is made more attractive with revised tax slabs and increased standard deductions. Various consumer goods, including leather products, mobile parts, and precious metals, see reduced duties, making them cheaper. However, the budget increases duties on items like ammonium nitrate, telecom equipment, and plastic products to encourage domestic manufacturing and environmental protection.

Mindmap

Keywords

💡Budget

The budget refers to the financial plan presented by the government, outlining the expected revenues and expenditures for the upcoming fiscal year. In the video, the budget's impact on various sectors such as agriculture, employment, and urban development is discussed, highlighting how it influences economic activities and public welfare.

💡Nirmala Sitharaman

Nirmala Sitharaman is the Finance Minister of India, who presented the budget. The video mentions her achievements, including setting a record for continuously delivering the budget speech for seven years. This emphasizes her significant role in shaping and communicating the government's financial strategies.

💡Stock Market

The stock market is a platform for buying and selling stocks and other securities. The video explains the market's reaction to the budget, specifically mentioning the increase in short-term and long-term capital gains taxes and the rise in securities transaction tax, which caused an initial drop in market indices.

💡Employment Schemes

Employment schemes are government initiatives aimed at creating job opportunities. The budget introduces five new schemes with a focus on generating employment for the youth, including an internship program with a stipend. These schemes are designed to address unemployment and boost economic participation.

💡Agriculture

Agriculture refers to the farming sector, which is a significant part of India's economy. The budget allocates substantial funds for natural farming training and rural development, indicating the government's commitment to enhancing agricultural productivity and supporting farmers.

💡Tax Reforms

Tax reforms in the budget involve changes in tax policies to benefit different segments of the population. The video highlights the revisions in income tax slabs, providing tax relief to middle-class individuals and making certain items cheaper through reduced duties, thereby impacting consumer behavior.

💡Women Empowerment

Women empowerment in the budget is addressed through various schemes aimed at supporting women's welfare. A significant allocation of funds is made to initiatives designed to improve women's access to resources and opportunities, reflecting the government's focus on gender equality.

💡Infrastructure Development

Infrastructure development involves the construction and improvement of facilities such as roads, bridges, and power plants. The budget allocates significant funds for capital expenditure in these areas, aiming to boost economic growth and enhance connectivity across the country.

💡Defense

Defense refers to the military and related sectors. The budget allocates a substantial portion of funds to defense, including a venture capital fund for defense startups, indicating the government's priority to strengthen national security and support indigenous defense manufacturing.

💡Middle Class

The middle class is a socio-economic group that the budget aims to support through tax relief measures. The video discusses changes in income tax structures designed to reduce the tax burden on middle-class families, providing them with more disposable income.

Highlights

Modi 3.0's first budget reflects the impact of election results.

Significant increase in short-term and long-term capital gains tax for the stock market.

Nirmala Sitharaman becomes the first finance minister to present seven consecutive budgets.

Stock market dropped by 1100 points during the budget announcement but later recovered.

Increased focus on nine sectors: Agriculture, Employment, Urban Development, Infrastructure, Innovation, Manufacturing and Services, Energy, Next Generation Reforms, and Inclusive Growth.

Youth and employment schemes introduced, with a total allocation of over ₹2 lakh crore.

1 crore youth to get internships in top 500 companies with a monthly stipend of ₹5000.

Free grain distribution scheme extended for 5 more years, benefiting 80 crore people.

₹10 lakh crore allocated for Pradhan Mantri Awas Yojana to build over 3 crore houses.

₹1.52 lakh crore allocated for farmers, focusing on natural farming.

₹1 lakh crore allocated for women through various schemes.

Increase in loan limit under the Mudra scheme from ₹10 lakh to ₹20 lakh.

₹62,000 crore allocated for defense, with a focus on strengthening the military and promoting self-reliance.

Tax relief for salaried individuals with savings up to ₹17,500 compared to the previous year.

Multiple items made cheaper including leather products, mobile parts, and cancer treatment drugs.

Bihar receives significant investments including a new airport, medical college, and infrastructure projects.

₹15,000 crore allocated for the new capital of Andhra Pradesh, Amravati.