Image used for representation purpose only.
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Finance Minister Nirmala Sitharaman, in her Budget speech on July 23, said the fiscal deficit for 2024-25 is estimated at 4.9% of GDP.

Presenting the Union Budget for 2024-25, she said the government aims to reach a 4.5% fiscal deficit in 2025-26.

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The Finance Minister said gross and net market borrowing is pegged at ₹14.01 lakh crore and ₹11.63 lakh crore, respectively, in FY25.

Net tax receipts are estimated at ₹25.83 lakh crore in FY25 while the total receipts are pegged at ₹32.07 lakh crore.

Total expenditure is estimated at ₹48.21 lakh crore in FY25, she added.

It may be recalled that the interim Budget, presented in February 2024, had pegged fiscal deficit, which is the difference between the government expenditure and income, at 5.1% for FY25 against 5.8% in the last fiscal year.

In her speech, Ms. Sitharaman also said the government plans to launch ‘NPS Vatshalya’ to provide pension contributions by parents and guardians.

Finance Minister Nirmala Sitharaman has changed the income tax slabs for the new tax regime which is likely to benefit taxpayers.

Finance Minister Nirmala Sitharaman in her seventh Budget speech on July 23 revised the tax slabs under the new regime. She told the House that as a result of these changes, a salaried employee would be able to save up to ₹17,500 in income taxes.

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Whilst the rate of taxation remains unchanged, the size of each of the slabs, excluding the initial zero to ₹3 lakh, remains unchanged. The erstwhile slab of ₹3 lakh to ₹6 lakh would now be expanded to ₹3 lakh to ₹7 lakh. However, the rate of taxation, that is 5%, remains unchanged. Similarly, the other slabs, that is, ₹6 to 9 lakhs, ₹9 to 12 lakhs, ₹12-15 lakhs and thereby beyond, would be revised to ₹7-10 lakhs, ₹10-12 lakhs, ₹12-15 lakhs and thereby beyond.  

Budget 2024-25: Taxes

Earlier, the Finance Minister further placed increasing the standard deduction for salaried employees from current ₹50,000 to ₹75,000 under the new tax regime.

Ms. Sitharaman further announced deduction in family pension for pensioners to be enhanced from ₹15,000 at present to ₹25,000. She held the measure would provide relief to about 4 crore salaried and pensioner individuals.

Concluding her speech, the Finance Minister told the House that because of the taxation measures announced today, ₹37,000 crore would be foregone, which entails ₹29,000 in direct taxes and ₹8,000 in indirect taxes. However, with a realisation of ₹30,000 crore expected, the total foregone amount would stand at ₹7,000 crore.

The government will develop a taxonomy for climate finance, Union Finance Minister Nirmala Sitharaman said in her Budget speech, in New Delhi on July 23, 2024. File (representational image)
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The government will develop a taxonomy for climate finance to help improve the availability of funds for adapting to climate change and reduce greenhouse gas emissions, Union Finance Minister Nirmala Sitharaman said during her Union Budget 2024-25 presentation in the Parliament on July 23.

Click here for the Union Budget 2024 updates, highlights

This will support achievement of the country’s climate commitments and green transition, she said while presenting the Budget for 2024-25 in the Lok Sabha.

She also said that the government will prepare a roadmap for moving hard-to-abate sectors, such as shipping, aviation, iron and steel and chemicals, from energy efficiency targets to emissions targets.

Union Finance Minister Nirmala Sitharaman speaks in the Lok Sabha during the first day of the Parliament Session, in New Delhi on July 22, 2024.
| Photo Credit: PTI

Finance Minister Nirmala Sitharaman on July 22 presented the Economic Survey 2023-24, along with the statistical appendix in the Lok Sabha.

The Economic Survey is an annual document presented by the government ahead of the Union Budget to review the state of the economy. It provides an overview of the short-to-medium-term prospects of the economy.

Also Read: Union Minister Nirmala Sitharaman tables Economic Survey

The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance under the supervision of the chief economic adviser.

The first Economic Survey came into existence in 1950-51 when it used to be a part of the Budget documents. In the 1960s, it was separated from the Union Budget and tabled a day before the presentation of the Budget.

The Union Budget for 2024-25 will be presented by Ms. Sitharaman on July 23.