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

Summary

The 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.