BUDGET 2024 - Benefit or Disaster? | Complete Unbiased Analysis

Summary

The 2024 budget is criticized for favoring the rich, particularly Adani and Ambani, and neglecting the middle class. It is seen as an attempt to secure votes and power for BJP. The budget includes tax relief for higher income earners and controversial decisions affecting stock market investors and real estate sectors, sparking public debate.

Takeaways

• 😀 The 2024 budget is criticized for being the 'worst' and is seen as a move to benefit the rich, specifically targeting the middle class.
• 💰 The budget is perceived to favor the Adani and Ambani businesses, filling their coffers at the expense of the middle class.
• 📉 There is a significant concern that the budget is designed to protect the ruling party's power, particularly in states like Bihar and Andhra Pradesh.
• 🏦 The budget allocation for defense is the highest, while health care receives less funding compared to the previous year.
• 📚 Education and unemployment are given special attention in the budget, but the health sector is criticized for its reduced budget allocation.
• 💼 The tax slabs for the middle class have been a point of contention, with expectations that the income tax slab of Rs. 5 lakh would be removed, but it remains unchanged.
• 💡 There is a slight reduction in tax rates for those earning between Rs. 6-7 lakh and Rs. 9-10 lakh, but the overall impact on the middle class is minimal.
• 📈 The budget aims to increase the tax base in India, targeting a higher number of taxpayers, which is seen as a move to stabilize the economy.
• 📉 The budget introduces a higher tax rate on short-term capital gains, which could negatively impact stock market investors.
• 🏠 The removal of indexation benefits in the real estate sector is a significant move that could affect property investors and the housing market.

Q & A

What is the main criticism of the 2024 budget according to the script?

The main criticism is that the 2024 budget is perceived as being detrimental to the middle class and is seen as the worst budget so far, primarily benefiting the wealthy like the Adanis and Ambanis.

How does the script describe the impact of the budget on stock market investors?

The script suggests that the budget might be bad news for stock market investors, as it could lead to a significant fall in the market, especially with the increase in tax rates for short-term capital gains.

What changes were made to the tax slabs for the middle class in the 2024 budget?

The budget made changes to the tax slabs for individuals earning between 6 to 7 lakhs and 9 to 10 lakhs, reducing their tax rates. Additionally, the standard deduction was increased from 50000 to 5000, providing an extra tax benefit of up to 17500 for those with an annual income above 7 lakhs.

How does the budget address the issue of tax compliance in India?

The government aims to increase the tax base by including more people in the tax slabs, with the goal of increasing the number of taxpayers from the current 2.2% to a higher percentage, in line with other countries like France and Germany.

What is the controversy surrounding the removal of indexation benefits in the real estate sector?

The removal of indexation benefits is criticized as it will increase the tax burden on real estate investors, as they will no longer be able to consider inflation when calculating capital gains on property sales.

What incentives are introduced in the budget for job seekers and the employment sector?

The budget introduces employment-linked incentive schemes, such as providing loans for higher education without collateral and offering internships and stipends for youth.

How does the budget affect startups and business growth?

The budget is favorable to startups by abolishing angel tax, allowing them to receive funding without any tax on investments. It also raises the limit for MSME loans and reduces corporate tax for foreign companies to attract more investment.

What special treatment did Andhra Pradesh and Bihar receive in the budget, and why?

Andhra Pradesh and Bihar received special financial packages in the budget. Andhra Pradesh was allocated 1500 crores for the development of its new capital city, Amaravati, while Bihar received 2600 crores for various development projects, including an express medical college and infrastructure.

What are the implications of the budget on the cost of certain goods and services?

The budget reduces import duties on items like copper, lead, gold, silver, jewelry, mobiles, accessories, cancer treatment and its drugs, solar sets, electric cars, and lithium batteries, making them cheaper. However, it increases duties on plastic and telecom equipment, which may raise their prices.

How does the budget address the issue of medical inflation?

The script does not provide specific measures in the budget that directly address medical inflation, but it mentions that the health care sector received less funding, which may contribute to the ongoing increase in medical inflation.

What is the script's perspective on the overall impact of the budget on the middle class?

The script suggests that the middle class has been somewhat neglected in the budget, as their concerns and needs have not been adequately addressed, and they continue to bear the burden of taxes without receiving significant benefits.