Key highlights of Modi 3.0 Government's first budget | Fusion - WeRIndia

Finance Minister Nirmala Sitharaman unveiled the inaugural budget under the Modi 3.0 administration yesterday, i.e. July 23.

This budget introduces revised tax rates and increased standard deductions for salaried individuals under the new tax regime, along with reduced customs duties on gold, silver, mobile phones, and various other goods.

As per the revised tax rates under the new regime, taxpayers need to pay a 5% tax if their income is in the range of ₹3-7 lakhs, which was up to 6 lakhs in the past.

Similarly, the tax is 10% for the income between ₹7-10 lakhs, up to 9 lakhs in the past. There is no change in the remaining slabs in the new regime. At the same time, there is no change in the old tax regime slabs. The standard deduction has also been hiked from ₹50,000 to ₹75,000.

The government’s capital expenditure for FY25 is projected at ₹11.1 lakh crore, consistent with the Interim Budget, with infrastructure spending making up 3.4% of GDP.

Employment and Skill Development:

• Five new schemes will target 4.1 crore young people over five years.
• A comprehensive internship program to provide opportunities for youth in top companies.
• Employment-linked incentives include one month’s wage support for new employees.
• Women-specific skill development programs.

Support for MSMEs and Manufacturing:

• The budget gives special attention to MSMEs and the manufacturing sector.
• It includes a credit guarantee scheme and term loans for machinery purchases.
• A technology support package is planned for MSMEs.
• SIDBI will open 24 new branches to serve MSME clusters better.

Financial Measures:

• The Mudra loan limit will be increased from ₹10 lakh to ₹20 lakhs, especially for previous borrowers.
• Financial support will be given for higher education through loans up to ₹10 lakhs in domestic institutions.
• An integrated technology system will be developed for the Insolvency and Bankruptcy Code.

Agriculture and Rural Development:

• ₹2.66 lakh crore is allocated for rural development.
• Agricultural research will focus on productivity and climate-resilient crop varieties.
• An initiative will be introduced to shift one crore farmers to natural farming over two years.

Infrastructure and Regional Growth:

• Rental housing in PPP mode will be provided for industrial workers.
• Andhra Pradesh will receive ₹15,000 crore in special financial support.
• Bihar will see new airports, medical facilities, and many more.
  

Economic Outlook:

• Inflation is expected to move towards a 4% target.
• India’s economic growth is described as a shining exception globally.
• The budget focuses on job creation and boosting consumption. This will mainly benefit the consumer goods, real estate, and auto sectors.

Additional Key Areas:

• The budget addresses nine priority areas, including agriculture, employment, energy, infrastructure etc.
• Over ₹3 lakh crore is allocated for women and girl-specific schemes.
• Pradhan Mantri Garib Kalyan Anna Yojana is extended for five more years to benefit over 80 crore people.
• Digital Public Infrastructure (DPI) applications will be developed for credit, e-commerce, law and justice, and corporate governance.

This budget aims to foster economic growth, enhance job creation, and improve infrastructure, positioning India as a standout performer in the global economy.

Image by Nilesh Thonte from Pixahive (Free for commercial use / CC0 Public Domain)

Image Published on October 10, 2020

Image Reference: https://pixahive.com/photo/budget/