The Union Budget 2024-25, which will be presented by Finance Minister Nirmala Sitharaman on Tuesday at 11 am, is a crucial document that will outline the government’s revenue and expenditure for the full financial year 2024-25. It impacts every citizen, from individuals to businesses, and sets the tone for economic growth and stability. Understanding how the budget affects you can help you make informed financial decisions and prepare for any changes in the economic landscape.

The Parliament’s Budget Session has started today, July 22, and will continue till August 12. Finance Minister Nirmala Sitharaman is slated to present the Union Budget on July 23 at 11 am. Leading up to this, the Economic Survey will be tabled in Parliament today at 1 pm in Parliament, offering a detailed assessment of the country’s economic landscape.

Here’s a breakdown of the key aspects of the upcoming Budget and their potential impact on different sections of society.

Income Tax Announcements

One of the most closely watched sections of any budget is the income tax proposals. In past Budgets, the government has introduced several changes aimed at providing relief to the middle class and boosting disposable income.

Tax Slabs Adjustment: The basic exemption limit is currently at Rs 3 lakh, means that those earning up to this level do not have to pay any tax. Additionally, the tax rates for various slabs have been adjusted in the past few Budgets, potentially lowering the overall tax burden for many individuals.

Standard Deduction Increase: There have been talks going on regarding the government likely to raise the standard deduction to Rs 1 lakh, from the current Rs 50,000. This move may simplify tax calculations and provide more disposable income to salaried employees.

Business and Industry

The budget will likely have several provisions aimed at supporting businesses, particularly small and medium enterprises (SMEs), which are the backbone of the Indian economy.

Corporate Tax: Corporate tax, which is a major source of revenue for the central government, is a vital component of India’s fiscal framework. It plays a significant role in the nation’s annual Budget. Any changes in that may impact businesses. Apart from that, it is also expected to provide incentives for startups and SMEs.

Manufacturing Boost: The production-linked incentive (PLI) scheme has been extended to more sectors in the past few years, encouraging domestic manufacturing and reducing dependency on imports. The Budget 2024 is expected to further expand its scope to boost the Make in India initiative.

Ease of Doing Business: The Budget 2024-25 is expected to announce simplified regulations and digitisation of processes aimed at making it easier to start and run a business in India. The government’s announcements on infrastructure will further enhance the business environment.

Social Welfare and Infrastructure

The Budget is also expected to focus on social welfare schemes and infrastructure development, which will have long-term benefits for the population.

Healthcare and Education: Significant allocations could be made for the healthcare and education sectors. The government is likely to set up more medical colleges and improve the quality of education through digital initiatives. This will ensure better access to healthcare and education for the masses.

Infrastructure Development: Massive investments in infrastructure, including roads, railways, and urban development, are expected to create jobs and spur economic growth. The focus on renewable energy and green projects will also contribute to sustainable development.

Social Security: The Budget 2024-25 is likely to have enhanced provisions for social security, including pensions and insurance for the underprivileged, aimed at providing a safety net for the most vulnerable sections of society.

Agriculture and Rural Development

Agriculture remains a priority, with several measures aimed at improving the income and livelihood of farmers.

Direct benefit transfers (DBT): Increased allocations for DBT schemes ensure that subsidies and benefits reach farmers directly, reducing leakages and improving efficiency.

Rural Infrastructure: Investments in rural infrastructure, such as roads, irrigation, and storage facilities, aim to boost agricultural productivity and connectivity.

Agri-Tech Initiatives: Encouragement for agri-tech startups and adoption of modern farming techniques will help farmers increase their yields and income.

The Budget 2024-25 is a comprehensive document that aims to address the needs of various sections of society. While the immediate impact may vary, the long-term benefits of increased disposable income, better business conditions, improved social welfare, and enhanced infrastructure will contribute to overall economic growth and stability. Staying informed and adapting to these changes will help individuals and businesses navigate the evolving economic landscape effectively.