A month before the Lok Sabha election results and two months before the first budget by Modi 3.0, Prime Minister Narendra Modi had outlined his government’s priorities in an exclusive interview with NDTV’s editor-in-chief Sanjay Pugalia. Many of those priorities have translated into proposals in the budget presented by Finance Minister Nirmala Sitharaman in Parliament today.
PM Narendra Modi spoke to NDTV editor-in-chief Sanjay Pugalia in May
The Prime Minister had spoken about his government’s focus on job creation and welfare schemes for asset generation. Budget 2024 incentivises job creation in the private sector, extends a warm welcome to new professionals and tweaks tax slabs under the new regime to benefit salaried professionals.
The government has announced that it will give one month’s salary (up to Rs 15,000) to every new professional who registers with EPFO. This amount will be provided through the Direct Benefit Transfer mode and deposited in the employee’s Provident Fund in three instalments. This initiative, Ms Sitharaman announced, will benefit over 2 crore youngsters.
The Budget has also proposed that employers will be reimbursed for two years for their PF contribution for every new staff. This reimbursement is capped at Rs 3,000 per month.
The Finance Minister also announced a scheme to provide internship opportunities in 500 top companies — a move it expects to benefit over 1 crore youngsters. Under this scheme, an allowance of Rs 5,000 per month and a one-time assistance of Rs 6,000 will be provided to interns.
With an eye on asset generation, the Budget has proposed to increase the exemption on capital gains on some financial assets to Rs 1.25 lakh per year.
The Budget had good news for salaried professionals, too. The standard deduction in the new tax regime has been increased from Rs 50,000 to Rs 75,000.
This Budget has revised tax slabs under the new regime. Annual income up to Rs 3 lakh will now attract zero tax, income in the Rs 3 lakh-7 lakh bracket will be taxed at 5 per cent. The rate will be 10 per cent for income between Rs 7 lakh -10 lakh, 15 per cent for Rs 10 lakh – 12 lakh and 20 per cent for Rs 12 lakh – Rs 15 lakh. Annual income over Rs 15 lakh will attract 30 per cent tax. Ms Sitharaman said salaried employees can save up to Rs 17,500 in income tax under the new tax slabs.
Land reforms is another area in which the Prime Minister’s vision has been implemented in this Budget. Speaking to NDTV, Prime Minister Modi had spoken about the need for land reforms. Budget 2024 proposes Unique Land Parcel Identification Number or Bhu-Aadhaar for all tracts of land. It added that land records in urban areas will be digitised with GIS mapping and proposed the establishment of a land registry.
Medium and Small Scale Industries (MSME) have been a key focus area of the Narendra Modi government since 2014. In his interview to NDTV, the Prime Minister had spoken about how the government ensured that MSMEs kept running during the Covid pandemic.
This focus was reflected in Budget 2024 too. The government announced a Credit Guarantee Scheme for MSMEs in the Manufacturing sector and credit support during stress situations. Under the Mudra scheme for micro-industries, the loan limit in the Tarun category was enhanced from Rs 10 lakh to Rs 20 lakh.
Shortly after Ms Sitharaman’s budget speech, Prime Minister Modi praised it for its focus on youth, backward sections, women, the middle class and manufacturing and infrastructure sectors. “This visionary budget will uplift and empower every stratum of our society, paving the way for a brighter future for all,” he said.
