Finance Minister Nirmala Sitharaman presented the Union Budget 2024 with a focus on job creation, tax reforms, and measures to bolster various sectors of the economy. As the sixth budget she has presented, it comes ahead of the general elections, aiming to address the needs of a broad spectrum of the Indian populace.
Job Creation
The budget promises to create 55 lakh new jobs, emphasizing sectors such as infrastructure, technology, and small businesses. The government’s strategy includes significant investments in these areas to stimulate job growth and enhance economic opportunities. This move is seen as crucial, especially in light of previous unmet job creation promises, with critics pointing out the shortfall from the 2014 target of two crore jobs annually.
Tax Benefits
A major highlight of the budget is the introduction of various tax benefits, particularly aimed at women. The budget proposes to increase the tax rebate under Section 87A specifically for women taxpayers from the current ₹12,500 to ₹25,000 for those with incomes up to ₹7 lakh. This is part of a broader effort to enhance financial independence for women and support their reentry into the workforce after career breaks. Additionally, there is a proposed special deduction of up to ₹1 lakh for women returning to work and an increase in the limit of tax-free interest income on savings accounts from ₹10,000 to ₹20,000 under Section 80TTA.
Healthcare and Education
The healthcare sector receives a significant boost, with the expansion of the Ayushman Bharat scheme to cover ASHA and Anganwadi workers. This extension aims to provide these essential workers with better health coverage and benefits. Furthermore, the budget outlines plans to set up more medical colleges by utilizing existing hospital infrastructure, addressing the need for improved medical education and healthcare facilities.
Agriculture and Rural Development
Agriculture and rural development are key focus areas in the budget. The government plans to enhance efforts in post-harvesting activities, aiming to add value to agricultural products and increase farmers’ income. The budget also includes a commitment to construct two crore more houses under the rural housing scheme over the next five years, with a target of achieving three crore constructions.
Sustainable Development
The budget highlights several initiatives for sustainable development. One notable measure is the rooftop solarization initiative, which aims to provide free electricity of up to 300 units per month to one crore households. This initiative is expected to save households between ₹15,000 to ₹18,000 annually, promoting both economic savings and environmental benefits.
Broader Economic and Social Measures
Finance Minister Sitharaman emphasized the government’s commitment to inclusivity and sustainable economic growth. The budget underscores the Modi government’s achievements over the past decade, including the provision of transparent and accountable governance. Key measures include direct benefit transfers through Jan Dhan accounts, which have resulted in substantial savings for the government. Additionally, the Skill India Mission has trained and upskilled 1.4 crore youth, enhancing their employability and supporting economic growth.
Reactions and Criticisms
The budget has garnered mixed reactions from various political and economic stakeholders. While some praise its inclusivity and focus on critical sectors, others criticize it for falling short on certain promises. For instance, Congress’s Supriya Shrinate argued that the government remains in denial about the real economic challenges, pointing out discrepancies between official statements and ground realities. Meanwhile, AAP leaders like Atishi have termed it a “jumla” budget, suggesting that the promises of job creation may not translate into actual employment opportunities.
Overall, the Union Budget 2024 aims to address immediate economic challenges while laying a foundation for long-term development. Its emphasis on job creation, tax reforms, healthcare, education, agriculture, and sustainable development reflects a comprehensive approach to driving growth and inclusivity. As India heads towards general elections, the budget serves as both a political statement and an economic roadmap, aiming to garner support across diverse voter segments.