Key Points from Budget 2024 Presentation

Public Reaction to Budget 2024

• Negative public reaction: even staunch Modi supporters expressed anger against the government post-budget.
• Social media reflects disillusionment: tweets shifted from support to frustration, highlighting financial burdens on the middle class.
• Satirical remarks and memes about Finance Minister Nirmala Sitharaman circulating widely.

Capital Gains Tax Overview

• Short-Term Capital Gains (STCG):
  • Increased from 15% to 20%.
• Long-Term Capital Gains (LTCG):
  • Increased from 10% to 12.5%.
  • Exemption increased from ₹100,000 to ₹125,000.
• Impacts on stock market investors and Futures/Options trading:
  • Increased Securities Transaction Tax on Futures and Options as well.

Economic Survey Highlights

• Warns about excessive equity market claims leading to instability.
• Shift in government view on stock market performance as an indicator of economic health.
• Unemployment discussion in the Economic Survey:
  • Need for 7.85 million jobs annually by 2030.
  • 44.49% unemployment rate among 20-24 age group in early 2024.
  • AI seen as a major disruptor in employment across all skill levels.

Property Taxation Changes

• LTCG tax on property decreased from 20% to 12.5% but removed indexation benefits.
• Indexation explained: adjusting capital gains tax for inflation.
• Implications for property owners: potential financial detriment for homeowners versus benefits for speculative investors.

Angel Tax Update

• Proposal to remove Angel Tax on startups met with approval.

Income Tax Adjustments

• Standard Deduction increased from ₹50,000 to ₹75,000.
• Changes in tax slabs benefiting middle class slightly; however, negligible overall impact.
• Comparison of current tax perspective versus previous governments, showcasing stagnant benefit for the middle class.

Critique of Income Inequality

• Government accused of favoring billionaires over the middle class.
• Revenue data showing shift in dependency from corporate tax to income tax from individuals.
• Charts of income inequality reveal worsening gap between rich and poor over decades.

Government Employment Schemes

• Five proposed schemes to enhance employment:
  1. First Time Employment Support - ₹15,000 for new jobs.
  2. Enhanced benefits for manufacturing sector employees.
  3. Employer support of ₹3,000/month for hiring.
  4. Skilling scheme for 2 million youth.
  5. Internships for 1 million youth in top companies.
• Concerns about actual implementation and effectiveness of the schemes.

Budget Allocation Focus on States

• Recognized special funding for Andhra Pradesh and Bihar, especially towards infrastructure.
• Allegations of strategic electoral funding versus fair distribution.
• Comparison of previous focus on Gujarat and Uttar Pradesh to current focus.

Conclusion and Future Perspectives

• Ongoing income inequality criticism; solutions suggested include taxation reform favoring middle class over wealthy.
• Call for targeted government policies to uplift small businesses and create equitable financial practices.

Additional Resources

• Recommended ChatGPT course on AI for upskilling opportunities available in the description.

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