Budget at a Glance: From changes in income tax rates to major reforms, here’s a simplified guide to Budget 2024

India's Finance Minister Nirmala Sitharaman today presented the Modi 3.0's first Budget, where she stuck to fiscal prudence, retained the capex target even as Budget proposed to tweak the income tax slabs under the new tax regime. The Budget also proposed to allocate resources to boost employment, promote agriculture and ramp up roads and highways.

Sitharaman presented the Budget for the seventh straight time and highlighted the Modi government's nine priorities that are crucial for transforming India into a developed country by 2047.

The nine priorities for generating ample opportunities for Indians included:

1. Productivity and resilience in agriculture
2. Employment and skilling
3. Inclusive human resource development
4. Social justice
5. Urban development
6. Energy security
7. Infrastructure
8. Innovation, research and development
9. Next generation reforms

Meanwhile, the Budget also proposed to allocate significant funds to states ruled by BJP's key allies - Chandrababu Naidu and Nitish Kumar. The Budget comes after Prime Minister Narendra Modi returned to power for a third term, but BJP had to rely on alliances to form the government and reports suggested key BJP's allies Naidu and Kumar had demanded increased funds for their states.

New income tax slabs announced in the Budget 2024 for new regime:

• Up to Rs 3 lakh - 0%
• Rs 3 lakh to Rs 7 lakh - 5%
• Rs 7 lakh to Rs 10 lakh - 10%
• Rs 10 to Rs 12 lakh - 15%
• Rs 12 to Rs 15 lakh - 20%
• Above Rs 15 lakh - 30%

Sitharaman said this will help a salaried individual under new tax regime to save up to Rs 17,500.

Key Numbers from Budget 2024

• Fiscal Deficit: Budget proposed to narrow budget gap to 4.9% of GDP for this fiscal year, down from 5.1% forecast in Interim Budget. The goverment aims to reach 4.5% by the end of next year.
• Total expenditure: Rs 48.21 lakh crore.
• Total receipts other than borrowings: Rs 32.07 lakh crore
• Capex Target: Capex outlay for infrastructure seen at Rs 11.1 lakh crore, unchanged from interim budget's capex aim
• Gross market borrowing: Sitharaman proposed to lower the gross maket borrowing target to 14.01 lakh crore rupees from 14.13 lakh crore rupees announced during interim budget. In the last fiscal year, New Delhi had borrowed 15.43 trillion rupees.
• Housing boost: Budget proposed to allocate Rs 10 lakh crore for providing 1 crore houses to urban poor and middle class. Rental housing scheme announced for working class.
• Boost for youth: Budget proposed to provide incentive to 30 lakh youth entering job market by providing 1 month PF contribution

Budget allocations to key sectors:

• Defence: Rs 6,21,940.85 cr
• Rural: Rs 2,65,808 cr
• Agri: Rs 1,51,851 cr
• Home affairs: Rs 1,50,983 cr
• Education: Rs 1,25,638 cr
• IT & Telecom: Rs 1,16,342 cr
• Health: Rs 89,287 cr
• Energy: Rs 68,769 cr
• Socia welfare: Rs 56,501 cr
• Commerce & industry: Rs 47,559 cr

The Budget today also proposed to make changes to basic customs duty on several items, making some costlier and some cheaper.

List of some items that got costlier and cheaper:

Costlier:

• Plastic products
• Specified telecom equipment

Cheaper:

• Mobiles, chargers and accessories
• Gold and silver
• Three cancer treatment medicines
• critical minerals.