Politics
By Khushi Singhal
2 August, 2024
For the financial year 2024-25, the government has allocated ₹11.11 lakh crore for capital expenditure, which constitutes 3.4% of India's GDP. This allocation is higher than the previous year’s revised estimate of ₹9.5 lakh crore. Additionally, an extra ₹26,000 crore has been designated for road connectivity projects to enhance infrastructure.
In the new tax regime, the standard deduction has been increased from ₹50,000 to ₹75,000. The tax rate structure has been revised, providing significant savings for salaried employees. Long-term capital gains tax has been raised from 10% to 12.5%, and short-term capital gains tax from 15% to 20%. The exemption limit for capital gains is now ₹1.25 lakh annually.
The government has introduced a PM Package with five schemes, allocating ₹2 lakh crore to boost employment and skilling. This includes ₹1.48 lakh crore for education, employment, and skilling. New employment-linked incentive schemes aim to benefit up to 2.1 lakh youths, with direct benefit transfers for new hires and reimbursement schemes for employers.
Over ₹3 lakh crore has been allocated for schemes benefiting women and girls, focusing on increasing their workforce participation. This includes setting up hostels and women-specific skilling programs to create a supportive environment for women in the workforce.
The agricultural sector will receive ₹1.52 lakh crore, with a comprehensive review of agricultural research to improve productivity and develop climate-resilient varieties. Additionally, ₹2.66 lakh crore has been allocated for rural development initiatives, aiming to introduce 1 crore farmers to natural farming over the next two years.
A new scheme will facilitate term loans for MSMEs to purchase machinery and equipment without collateral. A guarantee fund of up to ₹100 crore will support credit guarantees for MSMEs. SIDBI will open 24 new branches to serve MSME clusters, providing technological support and enhancing their capabilities.
Mudra loans will now have a higher limit of ₹20 lakh, and financial support for higher education loans up to ₹10 lakh will be provided with interest subvention. The Insolvency and Bankruptcy Code (IBC) will see improvements with an integrated tech platform for better outcomes. Simplification of FDI rules is also on the agenda to facilitate foreign investments.