Budget 2024 Key Highlights: New tax slabs in effect, fiscal deficit projected to reduce in FY2025
Budget 2024 Key Highlights: Finance Minister Nirmala Sitharaman announced the Union Budget 2024-25 in the parliament on July 23. The Budget focused on provisioning for the agricultural sector, the introduction of schemes related to employment, loan schemes, announcements for financial support to the MSME sector, infrastructural development, and fiscal deficit projection at 4.9% with a commitment to reducing it down to 4.5%.
The government cut customs duties at the same time making changes in the capital gain taxes for the financial year. The “Taxation budget” comes in the form of a revision in tax slabs under the new tax policy. Stay tuned to our Budget 2024 key Highlights live blog for the latest updates. Read the latest news on Budget 2024 with our live coverage on the Income Tax Slab, Impact on Share Market, Budget Key Highlights, and Corporate Reactions.
25 Jul 2024, 08:43:33 AM IST
Action-Packed Budget Session Ends with Minimal Change, says Rajesh Bhosale, Equity Technical Analyst, Angel One
Rajesh Bhosale, Equity Technical Analyst said, “On the key Budget day, the Benchmark Index began on a positive note. However, as the day progressed, prices traded cautiously within a range, influenced by the Budget announcement. In the second half, volatility spiked, causing prices to drop sharply below 24100. Despite this, prices quickly rebounded, reclaiming lost ground and ending just below 24500 with a marginal loss of 0.14%.”
“It was an intriguing trading session. Key events like the Budget often set the tone for future trends, but today, the closing did not show significant changes. The impact of such events can sometimes be seen in the following sessions, making the next few days crucial. Observing the daily chart, the market shows a defined range. The upper end, marked by a bearish engulfing pattern formed on Friday at 24850, serves as a key resistance, followed by the psychological level of 25000. On the downside, the panic low around the 20EMA at 24100 – 24000 acts as a strong support zone. In our previous outlook, we highlighted the fresh sell signal by the RSI Smoothened in the overbought zone, which remains a key observation for our firm cautious stance. However, recent observations indicate that the bulls are very resilient and hard to give up. We expect the Index to hover within the 24000 – 25000 range and anticipate trending moves after some consolidation. In this scenario, it is advisable to consider entering long positions near the lower end of the range and booking profits at the mentioned resistance levels.”
“With our markets now past key domestic events, it is crucial to shift our focus back to global events and monitor counters with upcoming earnings declarations. Additionally, we should watch for those likely to benefit from the budget.”
What are the most significant announcements?
Presenting the Budget, Ms. Sitharaman said the standard deduction for salaried employees will be hiked to ₹75,000, from ₹50,000 under the new income tax regime in FY25. The Union Budget 2024-25 identified nine priorities for generating ample opportunities — Productivity and Resilience in Agriculture, Employment and Skilling, Inclusive Human Resource Development and Social Justice, Manufacturing and Service, Urban Development, Energy Security, Infrastructure, Innovation, Research and Development and Next Generation Reforms.
Also read | Budget 2024: Mobile phones, gold and silver jewellery to get cheaper
India-funded projects in the neighbourhood received the bulk of the allocation for the Ministry of External Affairs under the Union Budget. Nepal secured an allocation of ₹700 crore, which is a jump of ₹150 crore from previous year’s allocation of ₹550 crore. Sri Lanka, which has a number of India-funded projects, has received ₹245 crore, an improvement of ₹95 crore over last year’s funding of ₹150 crore.
Also read | Budget in Focus: The Hindu’s series on pre-Budget expectations
Benchmark Sensex and Nifty settled marginally lower in volatile trade on July 23 as the government proposed to hike securities transaction tax on futures & options in the Budget for 2024-25. Recovering most of its intra-day losses of over 1,200 points, the 30-share BSE Sensex settled lower by 73.04 points or 0.09% 80,429.04.