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.

Outlines

00:00

📈 Union Budget 2024: Key Themes and Criticisms

The Indian Finance Minister 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 has been criticized for lacking substantial job creation strategies, favoring certain states for political gains, and causing unrest due to tax implications. It has been noted for not addressing the financial crisis in Manipur and Kerala and for the lack of significant benefits for the middle class. The budget also includes two major announcements regarding the new tax regime, which has been met with skepticism.

05:01

💼 Employment and Skilling Initiatives: Doubts and Opportunities

The budget proposes to facilitate employment, skilling, and opportunities for 4.1 crore youth with an outlay of 2 lakh crores over five years. However, the effectiveness of the budget allocation is questioned due to concerns about the skill gap in the workforce. Business owners argue that the focus should be on improving skill and education rather than financial incentives. The government's plans for upskilling 20 lakh youth in collaboration with state governments and industries are seen as a positive step towards addressing the skill gap.

10:02

🏭 Boosting MSMEs: Credit Schemes and Export Promotion

The budget showcases a comprehensive approach to support MSMEs, which are crucial to India's economy. Key measures include a credit guarantee scheme for the manufacturing sector, a new credit assessment model for public sector banks, continued funding for MSMEs at risk of default, and a reduction in the turnover threshold for trade receivables. Additionally, the government plans to set up export hubs to facilitate international trade services for MSMEs, aiming to address credit and cash flow issues.

15:04

🌾 Rural Economy and Agriculture: Increased Spending and New Initiatives

The budget allocates significant funding to the rural economy and agriculture, with a focus on research and new-age farming. The government plans to introduce 100 new high-yielding, climate-resilient crop varieties and support natural farming practices. Infrastructure development under the Pradhan Mantri Gram Sadak Yojana is also emphasized, with connectivity to be provided to 25,000 villages. However, the effectiveness of these policies will depend on their implementation.

20:06

💼 Tax Reforms: Middle Class Implications and Capital Gains Tax Hike

The budget introduces revised personal income tax slabs aimed at reducing the tax burden on salaried employees. However, the middle class expresses concern over increased capital gains taxes, which could erode profits from the stock market. The new tax regime has been criticized for leading to tax arbitrage, and the debate continues over whether the middle class will truly benefit from these changes.

25:07

🏢 Financial Management and State Allocations: Fiscal Deficit and Political Favoritism

The government's financial management is praised for reducing the fiscal deficit and decreasing the reliance on borrowings. However, the budget's political implications are highlighted by special allocations for Bihar and Andhra Pradesh, perceived as favoritism towards alliance partners. Critics argue that other states in need, such as Manipur, have been overlooked, raising questions about equitable distribution of funds.

📊 Sector-Specific Allocations: Opportunities for Growth and Investment

The budget presents opportunities for growth in specific sectors, with a focus on renewable energy, rural economy, and pharmaceuticals. Power companies, FMCG firms, and companies involved in gold and silver are expected to benefit from the budgetary allocations. The removal of customs duties on certain cancer medications and an increase in the pharmaceutical industry's production-linked incentive (PLI) scheme are also noted. However, the speaker disclaims any investment advice and encourages further research for market understanding.

Keywords

💡Union Budget

The Union Budget in India is an annual financial statement presented by the Finance Minister, outlining the government's revenue and expenditure for the coming fiscal year. In the video, the presenter discusses the 7th consecutive budget presented by the Finance Minister, highlighting its significance and the various sectors it impacts.

💡Employment and Skilling

Employment and Skilling refers to the government's initiatives aimed at creating job opportunities and providing necessary skills training to the youth. The video mentions a vision to facilitate employment, skilling, and opportunities for 4.1 crore youth over a 5-year period with a central outlay of 2 lakh crores.

💡MSMEs

MSMEs (Micro, Small, and Medium Enterprises) are crucial for India's economic development, contributing significantly to GDP and employment. The video discusses the government's focus on MSMEs in the budget, highlighting schemes for credit access, loan incentives, and support for exports.

💡Rural Development

Rural Development in the context of the budget refers to the government's strategies to improve the economic and social conditions of rural areas. The video mentions increased spending on agriculture and rural infrastructure, aiming to boost productivity and support farmers.

💡Middle Class

The Middle Class is a significant demographic in India, often targeted by government policies for economic stability and growth. The video discusses the budget's impact on the middle class, particularly in terms of tax benefits and the government's strategy to address their concerns.

💡Tax Regime

Tax Regime refers to the system of taxation in place, which can vary in terms of rates, exemptions, and deductions. The video delves into the new tax regime proposed in the budget, explaining the revised income tax slabs and their potential impact on taxpayers.

💡Capital Gains

Capital Gains is the profit made from the sale of an asset, such as stocks or real estate, and is subject to taxation. The video discusses changes in the capital gains tax rates in the budget, noting an increase from 10% to 12.5% for long-term gains, which has been criticized for eroding profits for the middle class.

💡Fiscal Deficit

Fiscal Deficit is the gap between a government's revenue and its expenditure, financed through borrowings. The video praises the government's efforts in reducing the fiscal deficit from 99.2% to 4.9%, indicating improved financial management.

💡State Allocation

State Allocation refers to the distribution of funds by the central government to various states for development projects. The video highlights the budgetary allocations for states like Andhra Pradesh and Bihar, suggesting political favoritism and neglect of other states like Manipur.

💡Renewable Energy

Renewable Energy is a key focus in the budget, with the government aiming to meet the target of 550 GW renewable energy capacity by 2030. The video mentions the government's investment in solar energy and the potential benefits for companies in the renewable energy sector.

💡Pharmaceutical Industry

The Pharmaceutical Industry is highlighted in the budget with the removal of customs duties on certain cancer medications and an increase in the production-linked incentive (PLI) scheme. The video suggests that this could benefit pharmaceutical companies and promote the domestic industry.

Highlights

The Finance Minister of India presented her 7th consecutive Union budget for 2024-2025.

The budget has caused chaos in the country due to its implications post-elections.

The government's response to unemployment is criticized as insufficient.

Critics claim the BJP has copied policies from the Congress Manifesto.

Predictions of a slowdown in the Indian stock market due to increased capital gains.

Allegations of political favoritism towards Andra Pradesh and Bihar in the budget allocations.

Manipur and Kerala suffered a financial crisis with no significant mention in the budget.

Middle class dissatisfaction due to increased taxes.

Introduction of a new tax regime with potential negative impacts.

Kyros, an online business school, is offering scholarships and practical learning opportunities.

Four major themes of the budget: employment and skilling, MSMEs, farmers and rural development, and the middle class.

Government's vision to facilitate employment for 4.1 crore youth with a 5-year plan.

Critique of the budget's approach to skilling and education for freshers.

Announcements of new initiatives for skilling programs and educational loans.

Support for MSMEs with credit guarantee schemes and loan incentives.

Rural economy and farmer-focused allocations with increased spending on agriculture and rural development.

Tax regime revisions and debates over the benefits to the middle class.

Changes in tax slabs and rates with potential tax savings for individuals.

Increase in capital gains tax rates causing discontent among the middle class.

India's financial management improvements with reduced fiscal deficit and debt ratios.

Political allocations to states like Bihar and Andhra Pradesh amidst claims of bias.

Sectors expected to benefit from the budget, including power, FMCG, jewelry, and pharmaceuticals.

Transcripts

hi everybody on 23rd of July 2024 the

Finance Minister of India presented her

7th consecutive Union budget it is the

big day today India's Union budget is

out I present the budget for 2425 it was

her seventh consecutive budget speech

the most by any Finance Minister in this

country we need to focus on four major

curs and since it's the budget right

after the elections it has caused an

absolute chaos in the country this model

shall showcase vas b vasat b in a growth

trajectory the response of the

government is too little and will have

only little impact on the grave

unemployment situation very little in

terms of any good creative ideas when it

comes to generating more jobs in our

economy in the last 10 15 years budget

has not been for the middle class

while our ex Finance Minister P chinam

said that the BJP has copied a few

policies from the Congress Manifesto

ntin Kut has predicted a Slowdown in the

Indian stock market due to the rise of

capital gains on top of that many

ministers from various states have come

forward to say that BJP has

strategically favored Andra Pradesh and

Bihar for political gains in these

states

[Music]

at the same time while Manipur and

Kerala have suffered deep financial

crisis they haven't even got a

significant mention in the budget and

lastly the middle class seems to be

enraged because of taxes taxes and taxes

I have two announcements to make for

those opting for the new tax regime two

tax regime is a bad idea we pay taxes

when we earn money when we spend money

and even when we invest money wherever

we go whatever we do the government has

one hand in our back pocket so as usual

in this episode today we are going to

cut through the chaos and jargons to

help you break down the union budget of

2024 in such a way that in simple

language you can understand what is

bjp's strategy with this year's budget

which sectors are expected to get the

biggest boost due to this year's budget

are there any changes in tax benefit for

the taxpayers of India and most

importantly what are the biggest

criticisms of this year's

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more people the first thing that we need

to understand is the vision and major

themes that the government has touched

upon in this year's budget this year

there are four four major themes

employment and Skilling msmes farmers

and rural development and the middle

class let's start with

employment in this theme the vision of

the government is to facilitate

employment Skilling and opportunities

for 4.1 CR youth over a 5-year period

with a central outlay of 2 lakh crores

and here's where as a business owner I

feel like it's a complete waste of money

now usually you must have noticed that I

often refrain from giving my own

opinions but this time since I'm a

stakeholder in this ecosystem I will

tell you why this is useless so let's

dive in firstly we have a budget

allocated for first timers so if you're

stepping into a formal sector job for

the first time and you are registered

under the employee Provident fund

organization or epfo then under this

scheme the government will give you a

one month wage in all formal sectors in

three installments up to 15,000 rupees

this scheme is designed to benefit 2.1

CR youth all across the country number

two is job creation in manufacturing

this is an incentive for both employee

and the employer so if the employee is a

fresher in the manufacturing sector then

an incentive will be provided to both

the employe and the employer for the

first four years this incentive is again

expected to benefit 30 lakh youth

entering the workforce and then there is

employer focused scheme under this

scheme If an employer creates additional

employment opportun within a salary of 1

lakh rupees then the employers will be

reimbursed up to 3,000 rupees for 2

years towards the epfo contribution or

employee Provident fund organization

contribution and this scheme is supposed

to give reimbursement for 50 lakh new

jobs and lastly to increase women's

participation in the workforce the

government has decided to set up working

hostels in collaboration with the

industry now all of this looks fantastic

right but I'll tell you why this is

useless talk to any business owner and

they will tell you that the reason why

they don't recruit freshers is not

because they don't want to pay the

freshers but because most of the

freshers in India are useless unskilled

and unemployable so the problem is not

money it is skill and education and I

know at least a dozen business owners in

my own Circle who would happily pay a

person 6 lakh rupees perom even if she's

a Dropout the only catch over here is

that they need to have the skill set to

work at that particular job because when

you pay somebody as a business owner it

is not an expense it is an investment

because we all know that a good talent

will easily generate 200% of their

salary in revenue for the company but

the problem over here is that most of

these freshers are useless and unskilled

so this 3,000 rupees or a one month

salary up to 15,000 rupees is of no use

at all and instead of spending 2 lakh

crores into this useless scheme the

government must invest 2 lakh crores

into incentivizing colleges to either

hire high grade professors or we can use

this money to improve our institutes and

have better infrastructure so these

super skilled professors and

infrastructure together could then

impart great skills and generate a high

quality Workforce and the employment

will be a result of a high quality

Workforce and by the way on this note

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let's move on with the budget people the

government's own economic survey has

predicted that India needs at least 7.8

million jobs in the nonfarm sector over

the next 7 years to keep up with the

demo graphic changes and this budget

seems to be a direct response to it and

here's where education and upskilling

comes in and this is what I'm happy

about there are two major announcements

over here number one the government will

launch a Skilling program in

collaboration with the state governments

and the industry to upskill 20 lakh

youth over the next 5 years under this

program 1,000 industrial training

institutes will be upgraded for outcome

orientation and eventually new courses

will be introduced as per the skills

need needed in the industry secondly

more loans will be made available for

educational purposes so loans up to 7.5

lakh rupes will be given to 25,000

students each year with a guarantee from

a government promoted fund and not just

that loans up to 10 lakh Rupees will be

given for higher education in domestic

institutes this will be done in the form

of E voucher to 1 lakh students with an

annual interest subvention of 3% in

simple words what is interest subvention

you will get a 3% discount on your

interest so if the interest on your loan

is 10% you will have to pay just 7% if

this is very very clear to you let's

move on to the second theme and that is

msmes and here's where the government

has done a fantastic job in the budget

for those who don't know msmes are of

utmost importance for the economic

development of our country there are 6

CR Ms units in India employing over 11

CR people and msmes are so so important

to our economy that they account for 30%

of our GDP and 50 % of our exports but

the problem over here is that among the

64 million msmes in our country only 14%

of them have access to credit as in

loans and financing so the first scheme

for msmes is the credit guarantee scheme

under this scheme msmes in the

manufacturing sector will get term loans

for the purchase of machinery and

equipment without collateral or third

party guarantee and the entrepreneurs

who have paid back their previous loans

they will be eligible for another loan

cherry on the cake for these people who

have paid back their loans their limit

for this loan has been increased from 10

lakh Rupees to 20 lakh rupees under the

mudra loan scheme secondly to make

credit assessment process streamlined

the Finance Minister has announced a new

assessment model for public sector Banks

so public sector banks are supposed to

build in-house capabilities to assess

msmes instead of relying on third party

assessment what will this do because of

bringing this operation inhouse even

those m mmes which do not have any

formal accounting system they can be

checked for loan eligibility eventually

we can increase our credit accessibility

to more and more msmes thirdly the msmes

which are at the risk of default they

will get continued funding from the

banks even during their stress period

And this is being done with the vision

that the msme sector of India should not

struggle during Market shocks again this

is a wonderful move by the government

fourthly the turnover threshold for

converting trade receivables Into Cash

has reduced from 500 cres to 250 crores

and I know this sounds complex so I'll

explain it in simple words in simple

words if you have a company with a

turnover of 500 crores and your company

is about to get 100 crores from your

customers as receivables then you can

give the trade receivable note to the

bank and the bank will give you 100 CR

rupees today itself and the customers

will actually supposed to pay you in 3

months they will now pay the bank in the

next 3 months this is being done with

the visual that our medium skill

businesses should not face a cash crunch

while the global market is booming so

again it's a great move by the

government so earlier while this

turnover threshold was 500 crores now it

has been reduced to 250 crores so even

smaller companies with a turnover of 250

crores can take benefit of this scheme

and because of this now an additional

7,000 msmes will be able to take

advantage of this Arrangement and lastly

because msmes account for 50% % of our

exports the government wants to support

them to increase their exports even

further this is why an export Hub will

be set up all across the country to

facilitate trade and Export services for

the msmes in the international market

and this is perhaps the perfect solution

for all the pain points of the msmes

which usually revolve around lack of

credit and lack of cash flow and this

brings us to the next theme and that is

rural economy and the

farmers here if you remember there has

been a big uproar in the country that

the NDA doesn't really care about

Farmers but the truth is that this time

the budget has an extensive allocation

just for the rural economy and the

farmers if you see the budget the

agricultural spending has now increased

to 1.52 lak crores Which is higher by

11,318 crores from last year similarly

rural spending has been hiked by over

10% to 2.66 lakh crores but the question

over here is where is this money going

and how is it going to make a difference

to the rural economy well firstly the

government has focused on research and

New Age farming so in this budget the

government wants to focus on increasing

productivity and to develop climate

resilient varieties of crops for example

in India rice and wheat have been

affected because of climate change and

this is affecting the farmers income so

instead of being over reliant on wheat

and rice Farmers now need to adapt to

changing weather patterns and grow new

varieties of crops this is the reason

why the government is investing in

research to find new ways to increase

productivity and to focus on products

like millets which are climate resilient

so in this budget the Finance Minister

has announced that the government will

introduce 100 new high yiing climate

resilient varieties of 32 crops to boost

the agricultural output of India so if

Farmers switch to these crops they are

bound to benefit secondly the budget

also supports natural farming and under

this initiative 1 CR farmers will be

taught natural Farm fing and they will

be supported by certification and

branding over the next 2 years and

10,000 research centers will be

established to provide necessary inputs

for natural farming so if you or your

friends are engaged in natural farming

do check out the government websites to

see how you can benefit and when it

comes to infrastructure under the

pradhanmantri grah sadak yoga some

25,000 villages will be provided

connectivity now all of this put

together it looks fantastic on the

outside but only the implement mentation

of these policies will tell us if it is

effective or is it just another

announcement but you know what guys I am

extremely happy because rural

development and agriculture they both

have received the second and third

highest funding just after defense which

is a great thing and this means that the

government really intends to go bullish

on Rural Development so this will

automatically increase our per capita

income and it will boost the number of

taxpayers if this is clear to you let's

move on to the hottest subject of the

budget which is tax tax and tax in the

new tax regime the tax rate structure is

proposed to be revised as follows income

tax personal income tax income tax

India's Finance Minister Nala sitaraman

has announced revised personal income

tax slabs that are aimed at reducing the

tax burden on the salaried employees two

tax regime is a bad idea it will lead to

tax arbitration some taxes have also

been hiked like the long-term capital

gains tax which in fact was a surprise

move people in an effort to provide some

relief to taxpayers and to increase the

number of taxpayers in our country the

government has made some changes in the

tax Labs so if you look at our tax labs

this is what the new tax Labs look like

and here's what the revised new tax Labs

look like now the biggest debate over

here is whether the middle class is

going to benefit from this or not so

let's take an example and understand

this better let's say Shashank is a

salaried employee with an income of 20

lakhs perom here's how he's taxed in the

revised regime from 0 to three lakhs

Shashank would pay nothing from 3 to 7

lakhs he would pay 5% so it will be 5%

of 4 lakhs equal to 20,000 rupes

similarly from 7 to 10 lakhs he would

pay 10% so 10% of 3 lakhs is 30,000

rupes then from 10 to 12 lakhs he would

pay 15% which is 15% of 2 lakh rupes

equal to 30,000 rupes and then from 12

to 15 lakhs he would pay 20% % which is

20% of 3 lakhs equal to 60,000 rupes and

from 15 to 20 lakhs he would pay the

usual 30% which is 1.5 lakh rupees so in

total shashan pays 20,000 plus 30,000

plus 30,000 plus 60,000 plus 1.5 lakh

rupees which comes to 2.9 lakh rupees

and if you calculate and compare it to

the new tax regime his total tax

liability would have been 3 lakh rupees

perom so for Shashank this is a tax tax

saving of 10,000 rupees now I know that

this does not seem like a very big

amount but this is not all there is also

something called cess and search charge

so let's start with cess what is cess

cess is a tax on tax so cess is levied

by the government generally for

promoting health and education for

example sess on education is used to pay

for students midday meals or to pay the

salaries of employees in government

schools and colleges so it's a

percentage of the existing tax that you

are paying instead of the tax on the

income generated so it's called tax on

tax for example if you have an income of

1,000 rupees on which tax is 300 rupees

then CES would be 4% of 300 equal to 12

rupees so it's an added tax then we come

to deductions deductions are nothing but

tax cuts that the government gives you

if you invest your money into sectors

that are beneficial for you and the

country this includes investing in

healthcare housing retirement savings

and many more as mentioned on the the

screen so if you spend or invest money

in these instruments the government will

not tax you for that amount of money but

for the Simplicity of this example let's

take the main deduction for all salaried

employees which is standard deduction

this is a flat deduction from the total

salary earned by the employee in a

particular Financial year and this is

done to reduce the taxable income now

this limit used to be 50,000 Rupees

until last year but now it has been

increased to 75,000 rupees so now

Shashank will be taxed not at 20 lakh

rupees but at 20 lakh minus 75,000 which

comes to 19.25 lakh rupees so this

brings his tax down to 2H 67,500 rupees

from 2.9 lakh rupees and here's where we

add cess cess in India is 4% on income

tax amount so 4% Off 2 lakh 67,500

rupees plus 2H 67,500 R is equal to

10,700 plus 2 lakh 7,500 rupees equal to

2 78,2 R so if you see this is the

amount of money that Shashank has to pay

which is 2 lak 78,2 rupees and if

Shashank was earning 10 lakh Rupees then

under the new regime after the standard

deduction and cess he would be paying

54,600 rupees but under the revised

regime it would be4 24,200 R so that's a

difference of 10,400 R and if his income

is 15 lakh rupes then he would be paying

1ak 45,600 rupes under the new regime

and just 1.3 lakh rupes under the

revised regime that's again a difference

of 15,600 rupees so this way without

counting says on an average the revised

tax regime is likely to save 17,500

rupees per person per year this is a

perspective of the pro government

opinion but the argument over here is

that even though this tax has been

reduced the capital gains has actually

been increased for those who don't know

capital gains again it's pretty simple

if you buy a stock for 10,000 rupees and

you sell it in the same year at 12,000

rupees you will incur a short-term

capital gains on this 2,000 rupes of

profit that you have generated and if

you sell the stock after 1 year then you

will incur a long-term capital gain tax

on this 2,000 Rupees of profit and when

it comes to other assets like house land

gold and silver here's a table that

tells us the exact holding period for

the asset to qualify for short-term

capital gains and for long-term capital

gains and in this year's budget the

short-term capital gains has been

increased from 15% to 20% and long-term

capital gains has been increased from

10% to

12.5% this is one of the reasons why the

middle class of India is extremely angry

because while the government is meagerly

reducing the income tax these capital

gains taxes will then erode The Profit

that the Indian middle class could

generate in the stock market of India

and and because there is no right or

wrong in this you tell me in the

comments if you find this to be better

or worse for you this is the second part

of the budget which is taxes and the

middle class appro if this is very clear

to you let's come to a very very

critical part of the budget which is

India's financial management here's why

ladies and gentlemen again the

government has done a fantastic job in

the past 5 years if you see this graph

our fiscal deficit is reducing from

99.2% postco to just 4.9 9% in the

coming year for those who don't know the

meaning of fiscal deficit is very simple

if the government generates 100 rupes in

tax and non tax revenue but spends 120

rupees then this 20 rupees of extra

spending needs to be funded through

bonds and Loans so this 20 Rupees is

called fiscal deficit so if your GDP is

200 cror and deficit is 20 crores then

fiscal deficit as a percentage of GDP is

20 divided 200 into 100 which is 10%

so the lesser the fiscal deficit the

better it is for the country and if you

look at the numbers in 2021 our economy

was in a disastrous State our fiscal

deficit shot up to

99.2% but now we are reaching an amazing

figure of just 4.9% which is excellent

ideally this number is supposed to be 3%

of our GDP but we're getting closer and

closer secondly the biggest source of

revenue for the government is borrowings

so 27% of our Revenue comes from just

borrowings now although this sounds

sounds scary on the outside what you

need to know is that last year this

number was 34% so we have significantly

reduced our revenue from borrowings

because of which it's a great thing for

our country similarly if you look at

other numbers our debt to GDP ratio has

gone down from 89% in 2021 to 81% in

2024 similarly our external debt to GDP

ratio has gone down from 21.2% in 2021

to 18.7% in 2024 so we are doing a great

job with managing our finances if this

is very clear to you let's come to the

next and perhaps the most important

political part of the budget which is

about State allocation and here's where

the appr is about Andhra Pradesh and

Bihar getting a political benefit due to

the BJP favoring its Alliance the budget

made special allocations of Bihar and

Andra Pradesh Andra Pradesh chief

minister Chandra Babu naidu's dream

project of building a new capital for

the state amarati got a major boost the

government has proposed 26,000 crors for

various Road projects in biar and 21,000

crores have been reserved for power

projects opposition ranks across the

party actually lebl this an attempt to

save the

government I think this budget should be

called to tell you about it here's what

the government has proposed for Andra

Pradesh up to 15,000 crores will will

support multilateral funding for Andhra

Pradesh New Capital which is in line

with the Andra Pradesh reorganization

act secondly financing will be provided

to complete the poam irrigation project

which is crucial for the state and its

Farmers thirdly grants will be given to

the backward regions of Andra Pradesh to

reduce disparities and promote balanced

growth and lastly funds will be

allocated for infrastructure such as

water power Railways and roads in key

industrial areas of Andhra Pradesh which

will help the vishakapatnam Chennai

Industrial Corridor and the Hyderabad

bangaluru industrial Corridor similarly

in Bihar 26,000 crores will be allocated

for road projects 21,000 crores will be

year marked for power projects and the

government votes to support Temple

economies in multiple areas all across

Bihar on top of that the central

government will Aid in developing an

industrial node at GAA which is a part

of the Amritsar Kolkata industrial

coridor and lastly the government will

expedite the request from Bihar for

external assistance from the multi

lateral development Banks so is this

good absolutely yes there is no problem

with the center allocating funds for

Bihar and Andra Pradesh at all because

it is after all our own people who will

benefit from it however critics point

out that while Bihar and Andra Pradesh

have been given preference Manipur is

also struggling a lot due to violence

and communal unrest and this has been

happening for the past 1 1 and a half

years but even then there was nothing

significant for Manipur now the argument

here is that NDA is doing this to favor

the their alliance with nitish Kumar in

Bihar and Chandra Babu Naidu in Andra

Pradesh so while it is great that these

states are getting funding it is equally

important to give special allocations

for States like Manipur which is

currently in a pathetic condition if

this is very very clear to you let's

come to the macro part of the budget

which is about the sectors that the

government is bullish on and why is this

important it is important because the

government is the Godfather of the

market and if they are bullish on some

sectors the companies in these sectors

will see a massive growth including your

own company if you are in one of these

sectors so this is a wealth of

opportunity that the government is

presenting to yourself in the form of

budget allocation so the question over

here is which are the companies and

sectors that will benefit from this

budget and which are the stocks that you

need to put on your watch list but

before we move on with the segment guys

I just have to let you know that I am

not a se- registered investment adviser

and nothing of what I'm telling you is

an investment advice everything is meant

to be used for educational purposes only

this is because I believe that one of

the best ways to do market research

about a particular industry is to study

the public listed companies to study the

annual reports and see how these stock

Ms are happening because these stock

movements are cues to help you

understand the waves in the market if

this is clear to you let's move ahead

people the first set of companies that

are expected to benefit from this budget

are the power companies because

renewable energy is a key theme in the

budget and the government is very

bullish to meet the target of 5 500 gaw

renewable energy capacity by 2030 so

6,250 crores of government money is

going into suar mu BG scheme so keep an

eye on solar stocks like Vari adani

green energy and insulation energy and

more importantly if you're in the Solar

industry do keep an eye on your value

chain so that you can understand the

opportunities in the value chain better

and then cater to those opportunities in

such a way that eventually you can gain

more profit from it moving on secondly

since the government is spending a lot

on the rural economy of India it is

expected to raise the income of poor and

middle class eventually it would

increase consumption and then benefit

the fmcg companies of India so keep an

eye on ITC and godr consumers thirdly we

saw a reduction in customs duty on gold

and silver which is again expected to

benefit companies like Titan truan Das

beamg zavi and senko gold India and

lastly the government has removed custom

duties from three cancer medications and

they've increased the pl on Pharm

matical industry from 1,200 crores last

year to

2,143 crores this year so keep an eye on

companies like astrazenica India Sia and

Sun Pharma these are the most important

points that we believe were the

highlights of the budget so long story

short firstly employment allocation to

me seems like a waste of money but when

it comes to budget allocation for

Education Loans those are great secondly

msme allocation is absolutely amazing

and it is the need of the hour third

thirdly when it comes to taxes you tell

me if you find it to be better or worse

and when it comes to capital gains

according to me it's definitely not a

good thing fourthly allocation for

Andhra Pradesh and Bihar is not a

problem at all but the ignorance of

other states like Manipur is a big big

problem especially Manipur because this

state has gone through horrendous times

in the past one and a half years and

when it comes to budget allocation for

sectors I don't have the necessary

qualification or expertise to comment on

it so here's where I would just trust

the government and they in tank because

they know their job better this is what

we have to say about the highlights of

the budget of

2024 for the rest of the information I

will attach docs in the description so

that you can educate yourself and

understand the budget better that's all

from my side of today guys if you learn

something viable please make sure to hit

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business and political case studies

please subscribe to our Channel thank

you so much for watching I will see you

in the next one bye-bye

n

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