Union Budget 2024-25 Insights
Discover the key highlights of the Union Budget 2024-25, including free electricity for 1 crore homes, major investments in railways and urban housing, revised income tax slabs, and market impacts.
Key Announcements
Suryaghar Free Electricity Scheme
- Announcement: Provision of free electricity to 1 crore homes.
- Impact: Significant relief for millions, providing free electricity to a large number of households.
Interim Union Budget 2024-25 Overview
| Category | Details |
|---|---|
| Total Expenditure | 47,65,768 crore (6% increase from 2023-24 revised estimate) |
| Total Receipts | 30,80,274 crore (12% increase from 2023-24 revised estimate) |
| Nominal GDP Growth Rate | Estimated at 10.5% for 2024-25 (real growth plus inflation) |
| Revenue Deficit | Targeted at 2% of GDP (down from 2.8% in 2023-24) |
| Fiscal Deficit | Targeted at 5.1% of GDP (down from 5.8% in 2023-24) |
| Capital Expenditure | 11,11,111 crore (11% increase from the previous year) |
| Railways Allocation | 2.4 lakh crore for railways, including three major corridors |
| Tax Proposals | No change in tax rates; extended benefits for startups and funds |
| Health Insurance | Focus on extending health insurance deductions under Section 80D |
| Fertilizer Subsidy | Provision of 1.64 lakh crore for FY25 |
| New Schemes Allocation | 70,449 crore for new schemes in the Department of Economic Affairs |
| Primary Deficit | Targeted at 4,95,054 crore (down from ₹6,79,346 crore in 2023-24) |
BHEL and NTPC Collaboration
- Announcement: BHEL and NTPC will jointly set up an 800 MW supercritical thermal power plant.
- Market Impact: Stocks of BHEL and NTPC have risen following the announcement.
- BHEL's stock is trading at Rs 310.
- NTPC's stock is trading at a 2.5% increase at Rs 380.
Urban Housing Plan
- Budget Allocation: Rs. 10 lakh crore for the Pradhan Mantri Awas Yojana-Urban 2.0.
- Objective: Housing for 1 crore families, promoting rental housing, and reducing stamp duty.
- Future Plans: Introduction of a cheap interest subsidy scheme for urban house loans.
Income Tax Revisions
- Overview: New tax benefits introduced, potential savings up to ₹17,500.
Income Tax Slabs:
| Income Range | Tax Rate (%) |
|---|---|
| Up to 3,00,000 | NIL |
| 3,00,001 to 6,00,000 | 5 |
| 6,00,001 to 9,00,000 | 10 |
| 9,00,001 to 12,00,000 | 15 |
| 12,00,001 to 15,00,000 | 20 |
| Above 15,00,000 | 30 |
| Income Range | Tax Rate (%) |
|---|---|
| Up to 2,50,000 | NIL |
| 2,50,001 to 5,00,000 | 5 |
| 5,00,001 to 10,00,000 | 20 |
| Above 10,00,000 | 30 |
