Budget Highlights 2024: Govt to lay white paper on economic performance

In 1973–74, Yashwantrao Chavan presented the Budget during the tenure of then PM Indira Gandhi. It became known as the "Black Budget" as the fiscal deficit for that year was ₹550 crore.

Until 1955, the Budget was only printed in English. A change occurred during the 1955-56 Budget when Finance minister CD Deshmukh initiated the practice of printing the Budget in both English and Hindi.

Finance ministry’s 10-year review of the economy said that India has 7% growth when the world is growing 2%. This is ‘qualitatively superior’ to 8%-9% achieved when the global economy grows 4%, the ministry noted.

Finance Minister Nirmala Sithraman is going to present her sixth consecutive Budget today with which she will become only the second Finance Minister in the country to have presented the Union Budget for six consecutive years after Morarji Desai.

Economic Survey has not been presented this year by the central government since Finance Minister Nirmala Sitharaman will present the Interim Budget ahead of the 2024 Lok Sabha elections which are due in the next few months.

Union Budget day has witnessed a mixed impact on the Indian share markets over the past decade. Read Hindustan Times' full analysis here

Commenting on how people think he’s a superstar so inflation doesn’t affect celebs like him, Suniel Shetty said, “We believe in eating fresh produce so my wife Mana only buys vegetables for a day or two. The price of tomatoes has skyrocketed and it has affected us as well.” Read more

What is it? Divestment refers to selling a stake in a public sector company or state-owned assets.

Why does the government use it? The government chooses divestment to raise more revenue.

Currently, under the Income Tax provision, a standard deduction of ₹50,000 is allowed to a salaried taxpayer.

What could change? The Interim Budget could consider increasing the standard deduction for salaried employees from ₹50,000 to ₹1,00,000.

What are Budget Estimates? Funds allocated for various ministries and departments during the Budget speech, indicating the government's planned expenditures.

Are these final commitments? These estimates are projections of intended expenditure.

What is inflation? Sustained increase in the general price level of goods and services in an economy over a period of time.

Simply put: Lower the inflation, better the economy.

What is the current rule? An employee is allowed deduction of the whole of the contribution made during the financial year into a notified pension scheme. This cannot exceed- 14% of salary, where such contribution is made by central or state government employees or 10% of salary, in case of other employees.

What could change? The Budget could end disparity in these two brackets.

The budget could likely raise the basic exemption limit by at least ₹50,000 under both the regimes.

Simply put: An increase in basic exemption limit will reduce the tax liability across all taxpayers.

Capital Expenditure incurred on creating physical assets, such as infrastructure, buildings, and machinery is called capital expenditure.

Revenue expenditure which is made on day-to-day operations, such as salaries, subsidies, and interest payments is called revenue expenditure.

Here are three Budget terms you need to know:

Annual Financial Statement (AF)- The document highlights receipts and expenditures of the government during the financial year.

Consolidated Fund- The entire revenue raised by the government, market borrowings, and receipts from loans are part of the Consolidated Fund of India.

Contingency Fund- This is set aside for any unforeseen events and is at the disposal of the President.

The tax exemption limit was increased to ₹3 lakhs and the new tax slabs as per 2023 Budget were:

Income up to Rs3,00,000- Nil

Income up to 3,00,001- 6,00,000- 5%

Income up to 6,00,001- 9,00,000- 10%

Income up to 9,00,001- 12,00,000- 15%

Income up to 12,00,001- 15,00,000- 20%

Income up to 15,00,001 and above- 30%

GDP- Gross Domestic Product- is the total monetary value of all final goods and services produced in a country in a given year.

Simply put: GDP is a measure of the economy's health and size.

What is wealth tax? Wealth tax is levied on property ownership and market value.

Simply put: If someone possesses real estate, they are required to pay wealth tax.

Here's all you need to know about the new tax regime:

1. It was introduced in Union Budget 2020.
2. Under the new tax regime, tax slabs were altered and taxpayers were offered concessional tax rates.
3. Taxpayers who opt for the new tax regime cannot claim several exemptions and deductions.
4. These include HRA, LTA, 80C, 80D.
5. In Budget 2023, the government introduced major changes to encourage taxpayers to adopt the new tax regime.

These taxes fall into the direct tax category:

Other than income tax, direct taxes also includes taxes like gift tax, wealth tax, capital gains tax, etc.

Corporate tax for companies also comes under the scope of direct tax.

Congress MP Gaurav Gogoi said that he expects the BJP government to announce policies that would benefit selected industrialists who are close to PM Modi.

"My expectation is what the BJP government has been doing for the past 10 years, which is offering more SOPs to that industrialist who is close to PM Modi. I believe in the budget there would be policy decisions which would benefit those very select industrialists...For the poor & middle class, we will only be treated to sound bytes and well-intentioned words that will change daily life nothing will make a difference. The poor & middle class would get ‘Jumlas’," he said as per news agency ANI.

What is Direct tax? Tax paid directly by individuals or organisations based on their earnings to the government.

Simply put: If an individual has earned money, they will have to pay this tax.

President Draupadi Murmu outlined that the priorities of the government would rest on four key pillers-youth, power, women power, farmers and poor.

What is revenue deficit? The gap between the government's revenue from taxes and other sources and its non-capital expenditure.

What this means? It is the money government falls short of even after collecting taxes to meet its regular expenses.

Simply put: Lower revenue deficit is considered good for the economy.

Nirmala Sitharaman's budget speech can be viewed live on the YouTube channels of Doordarshan, Press Information Bureau (PIB), and Sansad TV.

You can also follow this blog for all the live updates.