New Delhi: Finance Minister Nirmala Sitharaman Tuesday presented the first Union Budget for Modi Government 3.0. The Budget 2024, she said, envisages nine priorities — productivity and resilience in agriculture, employment and skilling, inclusive HR and social justice, manufacturing and services, urban development, energy transition, infrastructure, innovation and R&D, next-generation reforms.
Apart from revising the Income Tax Act and the tax rate structure under the new tax regime, the FM also proposed the abolishment of angel tax for start-ups, and unveiled big sops for Bihar and Andhra Pradesh.
Union Budget 2024: LIVE
02.30 pm: “Andhra Pradesh has won,” wrote Chief Minister N. Chandrababu Naidu in a post on X.
Thanking both Modi and Sitharaman, he wrote, “I thank (them) for recognising the needs of our state and focusing on a Capital, Polavaram, industrial nodes and development of backward areas in AP in the Union budget of FY 24-25. This support from the Centre will go a long way towards rebuilding Andhra Pradesh. I congratulate you on the presentation of this progressive and confidence-boosting budget.”
02.10 pm: Defence Minister Rajnath Singh, in an X post, thanked the finance minister for giving “the highest allocation of Rs 6,21,940.85 crore”, 12.9 percent of the total budget, to the ministry of defence.
“The capital outlay of Rs 1,72,000 crore will further strengthen the capabilities of armed forces. Earmarking of Rs 1,05,518.43 crore for domestic capital procurement will provide further impetus to Atmanibharta. I am pleased that border roads have been given 30 percent increase in allocation over the last budget under the capital head. This allocation of Rs 6,500 crore to BRO will further accelerate our Border Infrastructure. To boost the start-up ecosystem in defence industries, Rs 518 crore has been allocated to iDEX scheme to fund technological solutions given by start-ups, MSMEs and innovators,” he wrote.
02.10 pm: “Over the past 10 years, 25 crore people have come out of poverty,” says PM, adding that this budget will “give power” to the new middle class, help women, small businessmen and MSMEs.
“The youth will get unlimited opportunities…. Education and skill will get a new scale from this budget,” he says.
02.08 pm: Following the Budget 2024 speech by FM Nirmala Sitharaman, Prime Minister Narendra Modi, in a televised address to the nation, says, “This budget will give power to every section of the society.”
02.05 pm: On the allocation of funds for Bihar, Sanjay Kumar Jha, Janata Dal (United) Rajya Sabha MP says, “Our issues and concerns have been addressed in this budget. For the first time, a concrete proposal has been moved to tackle floods in north Bihar…. I am sure the government will help the state more if needed.”
02.00 pm: Uttar Pradesh Chief Minister Yogi Adityanath says, “In this general budget, there is unlimited potential for development…. Rs 1,52,000 crore has been given for the prosperity of the farmers and also more than Rs 3 lakh crore for women’s empowerment. These are definitely going to help Uttar Pradesh… The new tax slabs announced in the budget are welcoming.”
01.50 pm: Key highlights from Union Budget 2024.
01.40 pm: BJP MP from Mandi and actor Kangana Ranaut says, “Relief fund has been promised for Himachal Pradesh. We are very happy with the budget”.
#WATCH | Post Budget 2024: BJP MP from Mandi, Himachal Pradesh, Kangana Ranaut says "Relief fund has been promised for Himachal Pradesh. We are very happy with the budget…" pic.twitter.com/roEbr6Nm9y
— ANI (@ANI) July 23, 2024
Congress MP Karti Chidambaram says, “I understand the political compulsions of catering to the demands of their alliance partners from Andhra Pradesh and Bihar. They have also taken some elements from our manifesto, especially the apprentice scheme.”
01.25 pm: Following FM’s speech, Punjab MPs held a protest outside the Parliament alleging that the state had been ignored in allocation of funds in Union Budget 2024.
#WATCH | Delhi | Members of Parliament from Punjab protest alleging Punjab ignored in allocation of funds in Union Budget 2024 pic.twitter.com/GIJuAiok4J
— ANI (@ANI) July 23, 2024
01.25 pm: In a post on X, Congress leader Jairam Ramesh says, “It is highly disappointing that the Finance Minister’s announcement on Data and Statistics makes no mention of releasing funds for the decadal Population Census that was supposed to have taken place in 2021, but has still not been conducted. This is the first time since Independence that the Government has failed to conduct a Census on time.”
“The consequences on the State’s administrative capabilities are serious – one example being the 10-12 crore individuals who have been excluded from the ambit of the National Food Security Act. It also means that the Government will likely continue to avoid a Socio-Economic Caste Census, despite calls from its own NDA partners for the same,” he adds.
01.20 pm: Union minister Kiren Rijiju has called it a “dream budget”, especially for youth and women. “Capital expenditure of more than Rs 11 lakh crore has been allocated… Announcements for Bihar, Jharkhand, West Bengal, Odisha, Andhra Pradesh, and North-East will give a boost to the economy of Eastern India…. PM Modi’s dream of Viksit Bharat by 2047 is clearly reflected in the budget,” he says.
He adds, “If the opposition has criticised the budget, it means it is a very good budget.”
01.15 pm: Reacting to the Budget 2024, Samajwadi Party chief Akhilesh Yadav says, “Till the farmers’ issues are resolved and employment is ensured for the youth, the people will not benefit…”.
Congress MP Shashi Tharoor says, “It is an underwhelming budget. I didn’t hear anything about the key issues facing the common man. There is no mention of MNREGA, and insufficient mention of steps taken to improve the income of a common person. We have seen far too little from the government on addressing income disparity. On job creation, a token gesture was made. I welcome only one provision, which is abolishing tax on angel investors. I had recommended it to Arun Jaitley more than 5 years ago.”
01.00 pm: ThePrint’s Deputy Editor (Economy) TCA Sharad Raghavan discusses the Union Budget’s key takeaways and announcements with economist Radhika Pandey. Watch #BudgetWithThePrint LIVE.
12.25 pm: Finance Minister announces that the tax rate structure under the new tax regime will be revised. Standard deduction for salaried employees to be increased from Rs 50,000 to Rs 75,000. Deduction of family pension for pensioners to be enhanced to Rs 25,000.
No tax up to an annual income of Rs 3 lakh, 5 percent for the Rs 3-7 lakh slab, 10 percent for Rs 7-10 lakh, 15 percent for Rs 10-12 lakh, 20 percent for Rs 12-15 lakh, and 30 percent for more than Rs 15 lakh.
BSE Sensex recorded a fall of over 1000 points and NSE NIFTY 50 by over 300 points as of 12.30 pm as the finance minister presents the budget in the Parliament. This is the steepest fall of the day.
12.20 pm Finance minister also announces the abolishment of angel tax for start-ups.
Corporate tax rate on foreign companies to be reduced from 40 percent to 35 percent.
12.15 pm: The FM has proposed a comprehensive review of the Income Tax Act 1961, to make it easier to read and understand.
She also proposed for the capital gains taxation to be hugely simplified.
Short-term capital gains on certain financial assets to attract 20 percent tax rate. Long-term gains to attract 12.5 percent tax rate.
Unlisted bonds, debentures and debt mutual funds will attract tax on capital gains, adds the FM.
12.10 pm: Government proposes to reduce basic customs duty (BCD) on mobile phones and mobile PCBS and mobile chargers to 15 percent.
FM Sitharaman adds that three cancer treatment medicines will be exempt from BCD.
12.10 pm: “GST has been a success of vast proportions,” says FM sitharaman. “It reduced compliance burden and enhanced revenues for central and state governments”. She added that the Centre will simplify GST further.
“Fiscal deficit 2024-25 is estimated at 4.9 percent of GDP. The aim is to reach the deficit below 4.5 percent,” says FM. The interim budget fiscal deficit estimate was 5.1 percent.
12.05 pm: Total receipts estimated at Rs 32.07 lakh crore.
Total expenditure estimated at Rs 48.21 lakh crore.
On climate finance, FM says taxonomy for climate financing will be developed.
11.55 am: “Government intends to establish India as a global tourist destination, to facilitate construction of temple corridors and setting up of Nalanda as a tourist destination in Bihar,” says FM Sitharaman.
On development of small and modular nuclear reactors in the country, FM says, “The government will partner with the private sector for setting up Bharat small reactors, research and development of Bharat small modular reactors & research and development of newer technologies for nuclear energy…”
Moreover, speaking about the solar electricity scheme, she says, “PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar panels to enable 1 crore households to obtain free electricity upto 300 units each month. This scheme will further encourage it.”
11.50 am: Centre to facilitate development of cities as growth hubs with transit-oriented plans for 14 large cities.
Government also pledges strong fiscal support for infrastructure. Rs 11.1 lakh crore allocated for infrastructure development.
In Bihar, the government has extended financial support of Rs 11,500 crore for flood mitigation in Bihar.
11.45 am: FM says ‘housing needs of 1 crore families under PM Awas Yojana Urban 2.0 will be addressed’, allocates Rs 10 lakh crore.
Central assistance of Rs 2.2 lakh crore will be provided for urban housing over next 5 years.
11.35 am: Finance Minister Sitaharaman announces credit guarantee schemes for MSMEs in the manufacturing sector, credit support to MSMEs during stress period via new mechanism, enhancement of limit of Mudra loans to Rs 20 lakh, export hubs under public-private partnership, among other measures for the MSME sector, especially labour-intensive enterprises.
Union Budget 2024 allocates Rs 2.66 lakh crore for rural development.
On the participation of women in the workforce, FM Sitharaman says, “We will facilitate higher participation of women in the workforce by setting up working women hostels in collaboration with industry and establishing creches. The partnership will seek to organise women-specific skilling programs and promotion of market access for women HSG Enterprises.”
11.30 am: FM says new airports, medical colleges and sports infrastructure will be developed in Bihar, while special financial support will be given to Andhra Pradesh through multilateral development agencies for the state to facilitate the setting up of a capital.
Rs 15,000 crore allocated for Andhra Pradesh in the current fiscal.
“On the Amritsar-Kolkata industrial corridor, we will support the development of an industrial nod at Gaya in Bihar. It will catalyse the development of the eastern region. We will also support the development of road connectivity projects, Patna-Purnea expressway, Buxar-Bhagalpur highway, Bodhgaya-Rajgir-Vaishali-Darbhanga and an additional two-lane bridge over river Ganga in Buxar for Rs 26,000 crore,” says FM.
11.25 am: New centrally sponsored scheme, in collaboration with state governments, announced for skilling programmes for 20 lakh youth.
FM also says that the govt “will implement three schemes for employment-linked incentives as part of the Prime Minister’s package. These will be based on enrollment in the EPFO and focus on recognition of the first time employees and support to employees and employers.”
11.20 am: Saying that the Modi govt’s “major focus is on education and job creation”, Sitharaman announces three schemes with employment-linked incentives for first-time employees.
On agriculture, the FM says, this year the allocation for agriculture and allied sectors is Rs 1.52 lakh crore.
“New 109 high-yielding and climate resilient varieties of 32 field and horticulture crops will be released for cultivation by farmers. Over the next 2 years, 1 crore farmers will be initiated into natural farming,” she says.
11.15 am: Indian stock indices bounce back with gains as FM Nirmala Sitharaman presents Union Budget 2024. BSE Sensex rose by 170 points while NSE NIFTY 50 recorded an increase of 33 points as of 11:12 am.
11.10 am: “India’s economic growth continues to be the shining exception, and will remain so in years ahead,” says Nirmala Sitharaman, announces package of five schemes with focus on employment and skilling for 4.1 crore youth for a period of 5 years. Rs 1.48 lakh crore allocated.
11.05 am: “As was mentioned in the interim Budget, the focus for Budget 2024 will be on the poor, women, youth and farmers,” said Sitharaman.
11.00 am: FM Nirmala Sitharaman begins her seventh consecutive budget speech in Parliament. She is the first Indian finance minister to do so, surpassing Morarji Desai’s record of six straight budgets.
10.55 am: The Union Budget is unlikely to hold any major surprises with little deviation from the interim budget announced on 1 February, in line with historical trends, according to government officials, economists & ThePrint’s analysis.
Windfall gains from RBI may be used for fiscal consolidation, capital expenditure or social sector spending. Read this story by TCA Sharad Raghavan and Moksha M. Munoth.
10.45 am: Leader of Opposition in the Lok Sabha and Congress MP Rahul Gandhi arrives in Parliament.
10.40 am: Prime Minister Narendra Modi arrives in Parliament.
#WATCH | PM Modi in Parliament, ahead of the presentation of Union budget by Finance Minister Nirmala Sitharaman
(Video source: DD News) pic.twitter.com/T0RD4hBO2z
— ANI (@ANI) July 23, 2024
The estimated receipts and expenditure (2024-25) of Jammu and Kashmir, too, will be presented in Parliament today.
“The economic situation in Kashmir has worsened since the 2014 floods. The 2019 Kashmir lockdown and COVID-19 made things worse. We need a helping hand to revive the economy,” says J&K National Conference MP Aga Syed Ruhullah Mehdi.
10.25 am: Union Cabinet headed by Prime Minister Narendra Modi meets in Parliament to approve the Union Budget 2024 ahead of its presentation by FM Nirmala Sitharaman.
“The budget will take India forward on the path of development and progress. We will move towards the fulfillment of the prime minister’s resolve of ‘Viksit Bharat’,” says Telecom Minister Jyotiraditya Scindia.
Congress MP Gaurav Gogoi says, “PM Modi through the budget will help the ‘crorepatis’ who are close to him. The middle class and the sincere taxpayers will not get anything except hollow promises.”
10.20 am: With a favourable macro-fiscal backdrop, the Union Budget 2024 faces a tough balancing act between using the available fiscal space for consolidation and boosting revenue spending to spur consumption, besides managing the expectations of the ruling party’s coalition partners. Focus on stimulating private consumption and boost to labour-intensive sectors will ensure sustained high growth. Read ThePrint’s latest MacroSutra.
10.10 am: ThePrint’s Deputy Editor (Economy) TCA Sharad Raghavan and Associate Editor Yuthika Bhargava @yuthikabhargava discuss what’s expected from the Budget 2024. Watch #BudgetWithThePrint LIVE.
10.05 am: After meeting President Droupadi Murmu at Rashtrapati Bhavan, FM Sitharaman arrives at Parliament.
10.00 am: Climate change is an economic problem. And addressing it is among the top priorities for the government. Today, as Sitharaman presents the Budget 2024, Modi government can take decisive action to honour its pledges. Read Vibhuti Garg’s opinion piece on how Budget 2024 must further India’s clean energy goals.
Meanwhile, after opening high on Budget day, both the BSE Sensex and NSE NIFTY 50 markets record a fall Tuesday. The Sensex Index fell by over 100 points while the NIFTY 50 Index fell by 50 points as of 10 am.
09.50 am: Copies of Jammu and Kashmir’s budget arrive in Parliament. FM Sitharaman will present the estimated receipts and expenditure (2024-25) of the Union territory (with legislature) in Parliament today.
09.40 am: Sitharaman leaves the North Block offices of the Finance Ministry with a copy of the Union Budget 2024, ahead of the budget presentation. She is headed to the Rashtrapati Bhavan to meet with President Droupadi Murmu.
ThePrint’s Deputy Editor (Economy) TCA Sharad Raghavan reflects on how the National Democratic Alliance government has done the right thing by retaining her as finance minister. He writes, if corporate India and the stock markets want stability, and Prime Minister Narendra Modi wants someone who unquestioningly follows his directions, then she is the right person for the job. Read more here.
09.30 am: Finance Minister Nirmala Sitharaman holds the Budget tablet along with her team outside the Ministry of Finance ahead of the Union Budget 2024 presentation Tuesday.
Indian stock markets open high. The BSE Sensex rose by 222 points to open at 80,724.30 while the NSE NIFTY 50 Index rose by 59 points at 24,568.9.
Also read: Not enough time left, same fiscal constraints — why July budget maths will be similar to February’s