Finance Minister Nirmala Sitharaman unveiled the Union Budget for 2024-25 on Tuesday, aiming to cater to all societal segments, with a particular emphasis on the middle class. The budget introduces measures such as free electricity, affordable housing, and tax relief to meet their expectations. Here’s a closer look at what the middle class stands to gain:
Addressing Housing Needs
During the budget presentation, the Finance Minister detailed the expansion of the Pradhan Mantri Awas Yojana, which will see the construction of an additional three crore houses in both rural and urban areas. The initiative, dubbed Pradhan Mantri Awas Yojana 2.0, involves a significant investment of Rs 10 lakh crore to provide housing for one crore urban poor and middle-class families, with Rs 2.2 lakh crore of central assistance over five years. The budget also includes an interest subsidy to ensure affordable loans for these homes.
Pradhan Mantri Suryaghar Free Electricity Scheme
A notable highlight for the middle class is the announcement of the Pradhan Mantri Suryaghar Free Electricity Scheme. This program aims to install solar panels on rooftops to provide free electricity to millions of households. Under this scheme, up to 300 units of electricity per month will be provided free of charge to one crore homes, promoting the use of solar energy in domestic settings.
Tax Relief for Salaried Individuals
The budget introduces significant tax relief measures. In the new tax regime, income up to Rs 3 lakh is exempt from tax, while income between Rs 3 to 7 lakh is taxed at 5%. Additionally, the standard deduction has been increased from Rs 50,000 to Rs 75,000, providing further relief to salaried individuals.
Financial Assistance for Higher Education Loans
To support higher education, the Finance Minister announced financial assistance for loans up to Rs 10 lakh for students in domestic institutions. Additionally, e-vouchers offering a 3% annual interest subsidy on loan amounts will be issued to 1 lakh students each year.
Reduced Costs for Mobile Phones and Parts
India’s mobile phone industry has seen significant growth, with domestic production tripling and exports soaring over the past six years. To benefit consumers, the budget proposes reducing the basic customs duty (BCD) on mobile phones, PCBAs, and chargers to 15%, making these products more affordable.
Increased MUDRA Loan Limit
For successful entrepreneurs who have previously availed and repaid loans under the ‘Tarun’ category, the MUDRA loan limit has been increased from Rs 10 lakh to Rs 20 lakh, encouraging further business growth and entrepreneurship.
Affordable Cancer Drugs
To make cancer treatment more affordable, the government has exempted customs duty on three cancer drugs—Trastuzumab deruxtecan, Osimertinib, and Durvalumab. This move aims to provide these life-saving medications at reduced costs to the general public.