FM Nirmala Sitharaman.
Credit: PTI Photo
Finance Minister Nirmala Sitharaman presented the Union Budget on Tuesday, July 23. Ahead of the Budget 2024 presentation, news had emerged that Prime Minister Narendra Modi may face troubles this time, to accommodate the wishes of his alliance partners JD(U) chief Nitish Kumar and TDP supremo Chandrababu Naidu.
For Bihar, where assembly elections are due next year, the finance minister announced spending of Rs 60,000 crore on infrastructure projects like expressways, power plant, heritage corridors and new airports.
Similarly, for Andhra Pradesh, whose ruling TDP recently joined BJP-led NDA, she allocated Rs 15,000 crore in financial aid through multilateral agencies.
Follow live updates to how India reacted to the Budget right here!
"The biggest takeaway from the Budget is the pragmatic fiscal deficit target of 4.9% in FY25 and a glide path to 4.5% by FY26. The corresponding moderation in the net and gross borrowing target by the Government of Rs 14.01 trillion and Rs 11.63 trillion will be welcomed by the bond market and may also eventually bring down borrowing cost by the corporate sector. The infra spending target of Rs 11.11 trillion which is 3.4% of the GDP reassures that Government spending will keep the capex momentum going till the time that private capex picks up in a big way.The aggressive target of creating 4.1 cr jobs in 5 years with the support of 5 central sponsored schemes with an outlay of Rs2.1 trillion is a timely intervention. Focus on urban infrastructure, energy security with a pragmatic move to green energy are practical ways to a 5 year Plan," Sanjay Sinha, Founder of Citrus Advisors, said.
"A detailed outline of what the Govt has identified as the Next Gen Reforms is also a good way to give clarity on the way ahead. From the markets perspective the raising of STCG to 20% and LTCG to 12.5% is a body blow. We need to brace ourselves for a negative reaction in the short term. In the light of all the concerns raised about the hyper active interest in the F&O segment it is not surprising that the STT on F&O has been raised 5 times from 0.02% to 0.1%. Hopefully this will moderate the frenzy in this space.On the positive side, the relief in Income Tax by way of raising the exemption limit to Rs 3 lakhs and standard deduction to Rs 75,000 is very welcome. This will put an incremental Rs 17,500 in the hands of a salary payer and support the consumption led growth in the economy," he further added.
"From the markets perspective the raising of STCG to 20% and LTCG to 12.5% is a body blow. We need to brace ourselves for a negative reaction in the short term. In the light of all the concerns raised about the hyper active interest in the F&O segment it is not surprising that the STT on F&O has been raised 5 times from 0.02% to 0.1%. Hopefully this will moderate the frenzy in this space," Sinha added.
Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.