Seventh Consecutive Union Budget with Nirmala Sitharaman

In a remarkable feat, Finance Minister Nirmala Sitharaman presented her seventh consecutive Union Budget on July 23, 2024, creating history as the first finance minister to achieve this milestone. Surpassing the record set by former Prime Minister Morarji Desai, who presented six consecutive budgets between 1959-64, Sitharaman’s latest budget speech cemented her place as a trailblazer in India’s financial landscape.

The Union Budget 2024-25 (1) was presented against the backdrop of India’s strong economic performance, which the finance minister described as a “shining exception” amidst global uncertainties. Sitharaman’s steadfast leadership and her ability to steer the economy through challenging times have been widely praised, and this latest budget is expected to build on the momentum.

One of the key highlights of the budget was the revisions made to the new tax regime. Sitharaman announced increased standard deduction and revised tax rates for salaried individuals, providing much-needed relief to the middle class.

Under the new tax structure, individuals with an income between ₹3-7 lakh will be taxed at 5%, while those earning between ₹7-10 lakh will be taxed at 10%. The higher tax slabs have also been adjusted, with individuals earning between ₹10-12 lakh taxed at 15%, ₹12-15 lakh at 20%, and those above ₹15 lakh at 30%. The finance minister also announced a nil tax rate for those with an income up to ₹3 lakh.

In addition to the tax reforms, the budget also focused on several other areas, including employment and skilling, support for MSMEs and the manufacturing sector, financial initiatives, and infrastructure development.

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The government’s commitment to job creation was evident in the announcement of five schemes aimed at skilling and empowering 4.1 crore youth over the next five years, with a central outlay of ₹2 lakh crore. Furthermore, a comprehensive internship scheme for one crore young professionals in top companies was introduced, along with employment-linked incentives, including one month’s wage support for first-time employees.

The MSME and manufacturing sectors received special attention, with the introduction of a credit guarantee scheme and term loans for machinery purchase. A technology support package for MSMEs and the expansion of SIDBI’s branch network to serve MSME clusters were also announced, aimed at bolstering these critical pillars of the economy.

In the financial sector, the Mudra loan limit was increased from ₹10 lakh to ₹20 lakh for previous borrowers, providing greater access to credit for small businesses. Additionally, the budget included financial support for higher education loans up to ₹10 lakhs in domestic institutions and the development of an integrated technology system for the Insolvency and Bankruptcy Code (IBC).

The government’s focus on infrastructure and regional development was evident in the announcement of initiatives such as rental housing in PPP mode for industrial workers, special financial support of ₹15,000 crore for Andhra Pradesh, and the creation of new airports, medical facilities, and sports infrastructure for Bihar.

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In the agricultural sector, the budget emphasized the transformation of agricultural research to focus on productivity and climate-resilient crop varieties, as well as an initiative to introduce 1 crore farmers to natural farming over the next two years.

Notably, the budget allocated over ₹3 lakh crore for schemes benefiting women and girls, reflecting the government’s commitment to women-led development. The extension of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for five years, benefiting over 80 crore people, was another significant social welfare measure.

The budget also highlighted the government’s focus on digital and technological advancements, with the development of Digital Public Infrastructure (DPI) applications for credit, e-commerce, law and justice, and corporate governance.

Sitharaman’s record-breaking seventh consecutive budget has been widely praised for its comprehensive approach to addressing the country’s diverse needs. The finance minister’s ability to navigate the complexities of the Indian economy and deliver a budget that caters to the aspirations of various stakeholders has cemented her reputation as a formidable leader.

As India continues its journey towards becoming a global economic powerhouse, the Union Budget 2024-25 is seen as a crucial step in that direction. With its emphasis on job creation, investment in infrastructure, support for MSMEs, and focus on social welfare and women’s empowerment, the budget has the potential to propel the country’s growth and development in the coming years.

Sitharaman’s historic achievement in presenting seven consecutive Union Budgets is a testament to her vision, expertise, and unwavering commitment to the betterment of the Indian economy and its people. As the nation eagerly awaits the implementation of the budget’s initiatives, all eyes are on the finance minister as she continues to navigate the challenges and seize the opportunities that lie ahead.