CAC Budget Highlights 2024

Preface

In presenting the Finance Bill 2024, FINMIN Sitharaman lays out a comprehensive vision of the economic landscape of the nation. This crucial piece of legislation addresses fiscal policies and serves as a roadmap towards building of Viksit Bharat 2047 with special focus on on trinity of demography, democracy and diversity, backed by "Sabka Prayas".

As we delve into the intricacies of the Finance bill, we encounter myriad of proposals encompassing:

1. Garib Kalyan, Desh ka Kalyan
2. Empowering Amrit Peedhi, the Yuva
3. Welfare of Farmers-Annadata
4. Nari Shakti
5. Strategy for Amrit Kaal

Further, key highlights of the year’s Finance Bill are:-

Growth in last decade

a. Direct Tax Collections appx trebled
b. Return filers increased 2.4 times
c. ITR’s processing time reduced from 93 to 10 days
d. Monthly GST collections doubled


This Finance Bill’s blueprint is a reflection of the Govt’s dedication to steering the country towards prosperity, resilience and equitable development.

 

Sectorial Highlights

Agriculture and Annadata

  • Electronic National Agriculture Market integrated 1361 mandis, providing services to 1.8 crore farmers with trading volume of 3 lakh crore.
  • PM-KISAN SAMMAN Yojana provided direct financial assistance to 11.8 crore farmers, assisting ‘Annadata’ in producing food.
  • Crop insurance given to 4 crore farmers under PM Fasal Bima Yojana.
  • Pradhan Mantri Kisan Sampada Yojana benefitted 38 lakh farmers and generated 10 lakh employment.
  • Pradhan Mantri Formalization of Micro Food Processing Enterprises Yojana assisted 2.4 lakh SHGs and 60,000 individuals with credit linkages.
  • Private and public investment in post-harvest activities including aggregation, modern storage to be promoted.
  • "Atmanirbharta" strategy to be formulated for oil seeds such as mustard, groundnut, sesame, soybean, and sunflower.
  • Free ration for 80 crore people.
  • Increase in minimum support prices for produce of "Annadata".
 

Fisheries and Dairy

  • Government to set up separate department for fisheries.
  • Seafood export doubled since 2013-14.
  • Implementation of Pradhan Mantri Matsya Sampada Yojana (PMMSY) aims to :
    • Enhance aquaculture productivity from existing 3 to 5 tons per hectare,
    • Double exports to 1 lakh crore and
    • Generate 55 lakh employment opportunities in near future.
  • Five integrated aquaparks to be setup.
  • Comprehensive programme for supporting dairy farmers will be formulated.
  • Application of Nano DAP on various crops to be expanded in all agro-climatic zones.
 

Tourism

  • After successfully hosting G20 summit, India becomes attractive destination for business and conference tourism.
  • Tourism, including spiritual tourism increased, middle class now aspires to travel and explore.
  • Long-term interest free loans provided to States for comprehensive development of iconic tourist centres, branding and marketing.
  • Projects for port connectivity, tourism infrastructure, and amenities taken up on our islands including Lakshadweep to promote domestic tourism.
 

Education

  • Yuva :
    • PM Schools for Rising India (PM SHRI) delivering quality teaching.
    • Skill India Mission trained 1.4 Cr youth, upskilled and reskilled 54 lakh youth.
    • 3000 new ITIs , 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMS and 390 universities set up.
    • New committee set up for increasing medical colleges by utilizing existing hospital infrastructure.
  • Nari : Female enrolment in higher education gone up by 28% in ten years.
 

Health

  • Nari :
    • "Saksham Anganwadi and Poshan 2.0" expedited improved nutrition delivery, early childhood care and development for maternal and child care.
    • Cervical cancer vaccination for prevention in girls in age group of 9 to 14.
  • Ayushman Bharat scheme extended to all ASHA workers, Anganwadi Workers and Helpers.
 

Infrastructure

  • Digital Public Infrastructure, a new ‘factor of production’.
  • Vision of “Viksit Bharat” focused on modern infrastructure.
  • Increase in capital expenditure by 11.1% to 11,11,111 Cr (3.4% of GDP).
 

Green Growth

  • Commitment to meet ‘Net Zero’ by 2070
    • Viability gap funding for wind energy.
    • Setting up of coal gasification and liquefaction capacity.
    • Blending of CNG, PNG and compressed biogas.
    • Financial assistance for biomass aggregation machinery.
  • Rooftop Solarization: Up to 300 units of free electricity per month for 1 Cr households.
  • Savings up to INR 15,000 to 18,000 p.a from free solar electricity.
  • Expansion of EV ecosystem by providing support to manufacturers and charging infrastructure.
  • Adoption of e-buses for public transport.
  • Bio-manufacturing and bio-foundry to be launched.
 

Growth & Job creation

  • Emphasis on "Jai Jawan Jai Kisan Jai Vigyan and Jai Anusandhan".
  • PM Mudra Yojana sanctioned 43 crore loans aggregating to 22.5 lakh crore for youth entrepreneurship.
  • 50-year Interest free loan of INR 75,000 Crore proposed.
  • Government focusing on both “Governance, Development and Performance” along with GDP.
  • Finances, technologies & trainings for MSMEs to facilitate growth.
  • Growth of eastern regions and its people.
  • Corpus of INR 1 Lakh Crore to be established with 50-year Interest free loan to provide long-term financing and re-financing.
  • New scheme to be launched for strengthening deep-tech technologies for defense purposes and expediting ‘atmanirbharta’.
 

Miscellaneous

  • Reservation of one-third seats for women in Lok Sabha and State level legislative assemblies.
  • Allocation of over 70% houses in rural areas for women under PM Awas Yojana.
  • Triple Talaq illegal.
  • Housing, water, electricity, cooking gas, bank accounts and financial services for all individuals.
  • Help to middle class living in rented houses/slums/chawls/ unauthorised colonies to buy or build own houses.
  • Pradhan Mantri Awas Yojana (Grameen) to target 2 Crores additional houses in next 5 years.
  • Focus on secularism, reducing corruption and preventing nepotism.
  • "Direct Benefit Transfer" of 34 lakh crore from the Government using PM-Jan Dhan accounts leading to savings of 2.7 lakh crore.
  • PM-SVANidhi credit assistance to 78 lakh street vendors.
  • PM-Vishwakarma Yojana providing end-to-end support to artisans and craftspeople engaged in 18 trades.
  • Empowering Divyangs and Transgender.
  • Increase in chess grandmasters from over 20 in 2010 to 80.
  • Focus on ‘citizen-first’ and ‘‘minimum government, maximum governance’ approach.
  • Average real income increased by 50%.
  • Introduction of India-Middle East-Europe Economic Corridor as a strategic and economic game changer for India and others.
  • Government to build financial sector in terms of size, capacity, skills and regulatory framework for meeting investment needs.
  • U-WIN platform designed for managing immunization and intensified efforts of Mission Indradhanush.
  • INR 83 lakh SHGs with INR 9 crore women transforming rural socio-economic landscape with empowerment and self-reliance.
  • One Crore women transformed into Lakhpati Didi.
  • Enhancing the target for Lakhpati Didi from 2 crore to 3 crore.
  • Restoration, adaptation measures and coastal aquaculture launched for promoting climate resilient activities for blue economy 2.0.
  • Encouraging sustained foreign investment and negotiating bilateral investment treaties with foreign partners, in the spirit of ‘first develop India’.
  • Committee to be made for challenges arising from fast population growth and demographic changes.
  • Detailed roadmap to be issued for pursuit of Viksit Bharat.
 

Direct Taxation Highlights

No change in tax slabs or exemptions or deductions.   Earlier tax rates to be retained.   No announcement regarding introduction of Pillar 2 legislation.
 
Time limit for date for incorporation of startups, for claiming tax benefits, expiring on 31st March 2024 to be extended to 31st March 2025.   Withdrawal of petty, non-verified, non-reconciled or disputed direct tax demands of upto INR 25,000, pertaining to FY 2009-10 or earlier.   Withdrawal of petty, non-verified, non-reconciled or disputed direct tax demands of upto INR 10,000, for FY 2010-11 to FY 2014-15.
 
Benefits to investments made by sovereign wealth or pension funds, expiring on 31st March 2024 to be extended to 31st March 2025.   Tax exemption on specified incomes of specified IFSC units, expiring on 31st March 2024 to be extended to 31st March 2025   Deadline for introducing Faceless/Dynamic scheme for Transfer Pricing assessment, Dispute resolution Panel and Appellate Tribunal, expiring on 31st March 2024 to be extended to 31st March 2025.
 

Indirect Taxation Highlights

Proposed Section 122A levying penalty on manufacturer for not following spl procedure of machine’s registration. Definition of ISD and manner of distribution by it amended to include invoices on which tax paid under RCM. No change in rates of GST and import duties.
Import release time declined by 47%, 28% and 27% at land, airport and seaport respectively. Reduction in prices due to rationalization of logistics cost and taxes. Elimination of tax arbitrage and octroi leading to disbanding of check posts.
Tax base of GST doubled increasing Govt’s revenue to 1.66 lakh crore/PM. Tax buoyancy of State’s GST revenue increased from 0.72 to 1.22 from pre to post GST. 94% of the Industries welcome GST.
Reduced compliance burden on trade and industry.