Accord Consultants, a premier manpower consultancy in Mumbai, highlights the Union Budget 2024’s focus on job creation through increased capital expenditure, tax reforms, and sector-specific incentives. Key areas include infrastructure, healthcare, education, and renewable energy, with substantial investments to boost manufacturing, digital transformation, and rural development. The budget aims to enhance employment across construction, IT, healthcare, agriculture, and more, emphasizing skill development and effective implementation for sustainable economic growth.
Economic Overview
GDP Growth: Projected GDP growth rate for the fiscal year is targeted at 7.5%.
Fiscal Deficit: The fiscal deficit target is set at 5.9% of GDP, continuing the gradual path towards fiscal consolidation.
Taxation
Personal Income Tax: No changes in tax slabs, but standard deductions for salaried individuals have been increased.
Corporate Tax: The corporate tax rate for new manufacturing units is retained at 15%.
Indirect Taxes:
GST reforms to simplify compliance.
Customs duty rationalized on various items to promote Make in India.
Infrastructure and Development
Capital Expenditure: Increased to ₹10 lakh crore, focusing on roads, railways, ports, and urban infrastructure.
National Infrastructure Pipeline (NIP): Continued funding and expansion of projects under NIP.
Agriculture and Rural Development
Agriculture Credit: Target increased to ₹20 lakh crore with a focus on animal husbandry, dairy, and fisheries.
Rural Development: Enhanced allocation for MGNREGA and rural infrastructure projects.
Health and Education
Healthcare: Allocation increased by 15%, with a significant focus on primary healthcare and establishing more medical colleges.
Education: Significant increase in the budget for education, with a focus on digital education and skill development initiatives.
Employment and Skill Development
Skill Development: Expansion of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to include new-age skills such as AI, robotics, and drones.
Startup Support: Extension of tax holidays for startups and additional funds for the Startup India Seed Fund Scheme.
Renewable Energy and Environment
Green Energy: Allocation for renewable energy projects increased, focusing on solar, wind, and biomass energy.
Electric Vehicles: Incentives for EV manufacturing and infrastructure, including subsidies for charging stations.
Digital Economy and Innovation
Digital Infrastructure: Significant investment in enhancing digital infrastructure, including expanding the BharatNet project to rural areas.
Innovation and R&D: Increased funding for research and development in cutting-edge technologies such as AI, machine learning, and quantum computing.
Social Welfare
Social Security: Expansion of social security schemes and insurance coverage for unorganized sector workers.
Women and Child Development: Enhanced funding for women-centric schemes and child nutrition programs.
Financial Sector
Banking Reforms: Continued emphasis on banking sector reforms, including recapitalization of public sector banks.
Insurance: Measures to increase insurance penetration, including incentives for life and health insurance policies.
Defense
Defense Budget: Increased allocation for defense, with a focus on modernization and indigenization of defense equipment.
Industry and Commerce
PLI Schemes: Extension and expansion of Production Linked Incentive (PLI) schemes to more sectors.
Ease of Doing Business: Further simplification of compliance procedures to improve the business environment.
Transportation
Railways: Significant investment in railway infrastructure, including high-speed rail projects and modernization of stations.
Roads and Highways: Continued expansion of the national highways network and development of expressways.
Housing and Urban Affairs
Affordable Housing: Increased funding for affordable housing projects under the Pradhan Mantri Awas Yojana.
Smart Cities Mission: Continued investment in the development of smart cities.
These highlights outline the government's priorities in the Union Budget 2024, focusing on sustainable growth, job creation, and improving the quality of life for citizens.
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