In the grand theatre of Indian politics, the annual budget presentation is akin to the climactic scene, eagerly awaited by citizens and pundits alike. In addition to signaling a sea change in the economic agenda, Finance Minister Nirmala Sitharaman’s presentation of the Union Budget 2024 solidified her reputation as the first female budget presenter for a record six years.
Setting the Stage for Economic Projections
As the Lok Sabha witnessed Finance Minister Nirmala Sitharaman presenting the Union Budget for the fiscal year 2024-25, the expectation in the air was palpable. The seasoned minister has already left his imprint by beating the record of five straight budget presentations set by industry veterans like Manmohan Singh and Arun Jaitley.
A Glimpse into the Record-breaking Journey
Nirmala Sitharaman’s tenure as significant economic decisions and reforms have marked the Finance Minister. From her first budget in 2019 to this latest presentation, she has navigated the financial landscape through the challenges posed by global uncertainties and the ongoing pandemic.
The Unprecedented Sixth Consecutive Budget Presentation
Breaking records set by Morarji Desai, Nirmala Sitharaman has become the first Finance Minister to present the Union Budget for the sixth time. This achievement underscores her financial acumen and speaks volumes about her resilience in steering the nation’s economic ship.
Navigating Uncharted Waters: Interim Budget vs. Full Budget
This year’s budget is interim, distinct from the usual budget, owing to the impending general elections. The interim budget focuses on short-term fiscal measures, gaining approval for specific expenditures for the next four months. The anticipation is high as citizens eagerly await the post-election entire budget, which will provide a detailed outline of government expenditure for the year.
Economic Projections and India’s Growth Trajectory
In President Draupadi Murmu’s recent address, 2023 was hailed as a historic year, with India maintaining its position as the fastest-growing major economy. The finance ministry’s review report predicts close to 7 percent growth in the fiscal year 2024-25, affirming India’s economic resilience.
Income Tax Rates: Old vs. New Tax System
Amidst the economic projections, the budget also addresses the crucial aspect of income tax rates. Last year’s budget introduced changes to income tax rates under the new tax regime. It’s essential to understand the distinctions between the old and new tax systems, catering to the diverse needs of taxpayers.
Old Tax Regime: A Recap
Under the old income tax system, regular income tax rates applied to individuals, going rates for different age groups. Senior citizens enjoyed specific exemptions, with a basic exemption limit for those above 60 and 80 years.
New Tax Regime: A Paradigm Shift
The new tax system, introduced last year, streamlined tax rates irrespective of age. Finance Minister Nirmala Sitharaman revised tax rates, providing a more uniform structure. The eligibility for income tax rebate was extended to those earning up to Rs 7,00,000.
Surcharge Rates: Balancing Fiscal Responsibility
The old and new tax regimes incorporate surcharge rates for individuals with a total income exceeding a specified threshold. Understanding these surcharge rates is crucial for taxpayers, as they contribute to the government’s overall revenue generation.
Union Budget 2024 Income Tax Prospects: A Glimpse into the Future
Tax experts speculate on potential deductions and exemptions under the new income tax regime, with a keen eye on the forthcoming full-year budget. Possibilities include raised standard deduction and adjustments to the 30% tax rate threshold, offering a sneak peek into the government’s fiscal strategy.
