Yesterday, Finance Minister Nirmala Sitharaman presented the Union Budget 2024 (Interim Budget) in Parliament. No changes were announced in the tax slabs in both new and old income tax regimes. It remained unchanged for 11 years.
However, the government has reduced and rationalized tax rates. Under the new tax scheme, there is now no tax liability for taxpayers with income up to Rs 7 lakh. The Finance Minister extended tax incentives and exemptions for startups and investments by sovereign wealth or pension funds for one year.
“Certain tax benefits to startups & investments made by sovereign wealth or pension funds as also tax exemption on certain income of some IFSC units are expiring on March 31, 2024; to provide continuity, I propose to extend the date to March 31, 2025,” she said.
Presenting the Budget 2024, Finance Minister Nirmala Sitharaman said, “Our focus is on four major classes for welfare – youth, women, poor, and farmers.”
“PM Mudra Yojana has sanctioned 43 crore loans amounting to Rs 22.5 lakh crore for the entrepreneurial aspirations of the youth of the country, saying, “Fund of Funds, Startup India and Startup Credit Guarantee Schemes are assisting our youth.” She added.
Below are some diverse post-budget reactions by the Industry Leaders;
Achal Khanna, CEO of SHRM India, APAC & MENA
Commenting on Budget Achal Khanna, “After the union budget presented today by the honourable Finance Minister- we at SHRM are encouraged by the measures focused on the four key dimensions, i.e. upliftment of poor, women, the youth and farmers of the country. Though it is an interim budget due to the impending elections, today’s announcements are significant in many aspects.”
“Increase in capital expenditure outlay, reduction in Fiscal deficit, increase in FDI are all positive developments for the broader economy and encourage long-term investments. In particular- creating a corpus of one lakh crore for advancing fifty-year interest-free loans for the youth of the country will encourage entrepreneurship and grassroots innovation for the future. We are also enthused by the number of announcements and strategies towards making India’s vision of becoming ‘Vikshit Bharat by 2047’ a reality”. She added.
Amit Mishra, Co-Founder & CEO, iMocha
Speaking to SightsInPlus, Amit said, “We commend the budget’s focus on skill development and its recognition of technology’s pivotal role in driving India’s economic growth. The achievements of the Skill India mission underscore our commitment to a skills-first approach. Tax benefits for startups align with Atma Nirbhar Bharat, yet a more targeted approach is needed for skill development, especially in emerging technologies like AI and cybersecurity.”
“There’s a pressing need for targeted resource allocation toward essential tech skills. Collaborative initiatives between the government and the private sector will be crucial for addressing workforce challenges and making individuals future-ready. Skills intelligence will play a vital role in identifying and meeting these objectives.” He added.
“We look forward to ongoing endeavors aimed at establishing a resilient skills ecosystem that empowers individuals and elevates India’s global position in technology.” Amit further added.
Dr Tulsi Jayakumar, Professor, Finance & Economics at SPJIMR
Commenting on Budget Dr. Tulsi Jayakumar said, “Today’s budget, although a Vote of Account, is important for the policy directions provided were the government to come back to power in the Lok Sabha Elections 2024. The biggest challenge today is to revive animal spirits and promote private investment. The FM has announced an increase in government outlay by 11.1% on capital expenditure.”
“This together with a reduction in the Fiscal Deficit -government borrowings essentially — from 5.8% of GDP in 2023-24 to 5.1% of GDP in 2024-25, is expected to facilitate greater borrowings by private sector. Such capex had increased by 33% in the previous budget as well, however had not really spurred private investment. The challenge for the government will be to ensure private final consumption expenditure to increase and keep the inflation under control.” he added
Pranav Bajaj, Co-Founder, Medulance Healthcare
Sharing a reaction on Budget Pranav said, “The Finance Minister’s extension of Ayushman Bharat coverage to Anganwadi and Asha workers is a commendable move, prioritizing the well-being of healthcare frontline workers. The consolidation of maternal and child healthcare schemes into a comprehensive program streamlines efforts for better outcomes. Committing to raise the Lakhpati Didi scheme target to Rs 3 crore reflects dedication to women’s economic empowerment. The emphasis on tech-savvy youth and innovation as a linchpin for national development is encouraging.”
“At Medulance, the launch of our Healthcare Academy aligns with the government’s vision, focusing on uplifting healthcare standards, creating employment opportunities through training and upskilling. We launched the academy in collaboration with the children of Robin Hood Army with an aim to raise awareness about the significance of our commitment to ensure quick access to essential medical services, making healthcare universally accessible, equitable, and sustainable. The Medulance Healthcare Academy is a commitment to set a benchmark for excellence, professionalism, and compassion. Our vision is to be the trusted guardian of health, fostering a safer and healthier society for all.” he added.
Prateek Bansal, Partner, Taxation, White & Brief, Advocates & Solicitors
Talking to SightsIn Plus, Prateek said, “As an interim budget preceding general elections, the focus on social welfare and empowerment initiatives for the masses is a notable highlight. We acknowledge the government’s strategic approach in prioritizing the general public, women’s empowerment, and schemes aimed at uplifting the underprivileged segments of society. The emphasis on people-centric policies rather than significant changes in taxation aligns with the inclusive spirit of the budget.”
“The proposal to withdraw outstanding direct tax demands up to ₹25,000 reflects a considerate approach towards individuals, particularly those in the lower income brackets. While the budget doesn’t heavily target the high-income group, the assurance of no tax liability for income up to Rs 7 lakh demonstrates a commitment to easing the burden on middle-income individuals.” he added.
He further said, “It’s noteworthy that in this interim budget, there are no substantial alterations in tax structures, whether direct or indirect, including import duties. At White & Brief, we remain vigilant and will continue to provide strategic insights to our clients in navigating the legal landscape shaped by these budgetary announcements.”
Vandana Ahuja, HR Adviser & Executive Coach at Metamorph Dynamics Consulting
Commenting on the budget Vandans S Ahuja said, “Finance Minister Nirmala Sitharaman highlighted in the recently announced Interim Budget 2024 that there is a clear focus on prioritizing youth and women empowerment, with an emphasis on fiscal consolidation and sustained capital expenditure. The past decade has witnessed significant strides in empowering women through entrepreneurship, enhancing the quality of life, and preserving their dignity.”
“The Finance Minister underscored the distribution of 30 crore Mudra Yojana loans to women entrepreneurs as a noteworthy achievement. Addressing ‘Nari Shakti,’ she pointed out that female enrollment in higher education has surged by 28% in the last 10 years. In STEM courses, girls and women now constitute 43% of enrollment, marking one of the highest figures globally.” She added.
She further added, “These positive trends are evident in the growing participation of women in the workforce. Additionally, legal measures such as the prohibition of triple talaq, the reservation of one-third of seats for women in Parliament and state assemblies, and the allocation of over 70% of houses under PM Awas Yojana to women have contributed significantly to enhancing their dignity.”
Nilesh Tribhuvann, Founder & Managing Partner, White & Brief, Advocates & Solicitors
Commenting on the Budget Nilesh said, “The Finance Minister’s assertion that this will be a golden era for our tech-savvy youth is a promising nod towards the power of innovation and research in emerging domains. As a law firm committed to navigating legal landscapes, we are keenly aware of the profound impact that technology-driven programs can have when combined with the enthusiasm of our youth. “
“The introduction of a new scheme to strengthen deep-tech technologies for defense purposes aligns seamlessly with the broader vision of fostering ‘Atmanirbharta‘ or self-reliance. This initiative holds great potential in enhancing India’s capabilities in defense technology.” he added.
“Furthermore, the government’s consistent focus on Nari Shakti, reflected in initiatives for women’s empowerment, entrepreneurship, and dignity, is commendable. Legal strides such as making ‘Triple Talaq’ illegal and reserving one-third of seats for women in legislative assemblies have contributed significantly to advancing gender equality.” he further said
“The emphasis on providing over seventy percent of houses under PM Awas Yojana in rural areas to women as sole or joint owners is a testament to the government’s commitment to enhancing the dignity of women. As a law firm, we remain committed to supporting legal frameworks that empower and uphold the rights of all citizens.” he added
