Union Budget 2024 Highlights: Key Takeaways and Expert Insights

Major Infrastructure Boost

The Union Budget 2024 has earmarked a record ₹11.11 lakh crore for infrastructure projects, which is 3.4% of GDP. This allocation focuses on new industrial parks, urban-industry synergies, and advanced transport planning, aiming to transform cities into engines of economic growth​ (PwC)​​ (mint)​.

Commitment to Fiscal Responsibility

With a fiscal deficit target set at 5.1% of GDP for FY25, the government is maintaining its commitment to fiscal prudence. The long-term goal is to reduce the deficit to 4.5% by FY26, balancing economic growth with fiscal stability​ (mint)​.

Stable Tax Regime

The budget maintains the current tax rates, providing predictability for businesses and individuals. Over the past decade, tax collections have doubled, and the processing time for tax returns has been significantly reduced to just 10 days​ (mint)​.

Railway and Logistics Upgrades

Significant investments are planned for rail infrastructure, including the conversion of 40,000 rail bogies to Vande Bharat coaches. This initiative, along with the development of three major railway corridors, aims to enhance logistics efficiency and passenger safety​ (mint)​.

Empowering Women in Rural Areas

The 'Lakhpati Didi' scheme is expanding its reach to empower 3 crore women, up from 2 crore. This program supports self-help groups with financial aid to uplift the economic status of rural women, promoting economic independence and growth​ (mint)​.

Digital and Financial Inclusion

The budget continues to advance digital public infrastructure and financial inclusion, with significant investments in public-private tech partnerships. These initiatives align with the vision of achieving a $5 trillion economy​ (India Today)​.

Support for MSMEs and Export Hubs

New credit guarantee schemes and e-commerce export hubs are set to boost demand for MSMEs, aiming for $1 trillion in exports by 2030. This support will drive economic growth and innovation in the small and medium enterprise sector​ (PwC)​.

Expert Opinions

• V Anantha Nageswaran, Chief Economic Advisor: "The Indian economy's resilience in the face of global challenges is underscored
   by this budget's focus on economic and financial stability"​ (Hindustan Times)​
  

• 

  Ashwin Malik Meshram, Entrepreneur and Economic Expert.:"Maharashtra, having rejected BJP's divisive politics in the recent Lok Sabha elections, is seemingly being penalized through the Union Budget 2024, which offers minimal support for the state's critical infrastructure projects and public services​. 

  This budget is a retaliation against Maharashtra for its electoral choices, as the BJP government has significantly reduced fund allocations to the state, despite Maharashtra being the largest contributor to India's GDP and tax revenue.

  The budget's allocation pattern suggests a politically motivated neglect, where Maharashtra's crucial sectors like agriculture and industry receive insufficient funding, reflecting a punitive stance by the central government. 

  By ignoring Maharashtra's pressing needs and developmental priorities, the budget appears to be a strategic move by the BJP to undermine the state's progress as retribution for the electoral setback they faced."

• Ranen Banerjee, PwC India: "The budget promotes job creation and competitiveness in manufacturing and services through urban-industry synergies and quality infrastructure investment"​ (PwC)​.