Budget 2024 Highlights: Price Changes and Economic Strategies

Recently, the Union Budget 2024 was presented by Finance Minister Nirmala Sitharaman. It had sweeping changes regarding the generation of employment, rationalization of income tax, and infrastructure development. The following article discusses the major price changes for various items and significant economic measures announced by the current budget.

Items Becoming Cheaper

The Budget 2024 brings good news for consumers with several items set to become more affordable:

1. Mobile Phones: The basic customs duty on mobile phones and chargers has been slashed to 15%. This reduction is expected to lower the prices of smartphones and their accessories, making them more accessible to a wider audience.
2. Gold and Silver: Customs duties on gold and silver have been reduced to 6%. This move is anticipated to make jewelry and other products made from these precious metals more affordable, benefiting both consumers and the jewelry industry.
3. Platinum: The customs duty on platinum has been decreased to 6.5%. This reduction should lead to lower prices for platinum jewelry and other related products.
4. Cancer Drugs: Three additional cancer treatment drugs will now be exempt from customs duties. This exemption is a significant relief for patients, as it will reduce the cost of essential cancer medications.
5. Seafood: The basic customs duty on certain brood stocks, shrimps, and fish feed has been lowered to 5%. This measure is expected to benefit the seafood industry and consumers by reducing the costs associated with seafood production and supply.
   

   Items Becoming Costlier

   Conversely, the budget also includes increases in customs duties for certain items, which may lead to higher prices:

   • Ammonium Nitrate: The customs duty on imported ammonium nitrate would also be enhanced to 10 per cent. This would mean increased prices for fertilizers where ammonium nitrate is a key ingredient.
   • Non-biodegradable Plastics: This, in parallel, will increase the duty on non-biodegradable plastics to 25%. This comes in succession to the ongoing efforts by the government to consolidate the application of friendly alternatives in line with curbing pollution by plastic.
   • Telecom Equipment: The basic customs duty on telecom equipment will be increased from 10% to 15%. This increase in duty may have some effect on general telecommunications services cost and telecom infrastructure cost.
   • Tax Collection at Source (TCS): 1% TCS will be applicable on notified goods more than ₹10 lakh. With this high-value transaction, an attempt is made to get better tax compliance.
   • Solar Glass: The customs duty on solar glass will not be extended, potentially impacting the pricing of solar energy products.
     

     Tax and economic reforms.

     Budget 2024 also introduces the following significant tax and economic reforms for growth and efficiency:

   • Increase in the Standard Deduction: In the new regime, the standard deduction on salary for those earning salaried income was increased from ₹50,000 to ₹75,000. It will simultaneously reduce the burden on taxpayers and increase disposable income.
   • Job Creation and Employment Initiatives: Much focus has been provided to the job creation and consumption of this budget. Several schemes were brought out to encourage employment, which depicts that the government is committed to reducing unemployment and inducing economic activity.
   • Rationalization of Taxes: The government intends to rationalize tax structures to make them more effective and user-friendly. It would also involve simplification of tax procedures and a reduction in Compliance Burden on taxpayers.
   • Capex Retained at ₹11.11 Lakh Crore: The capital expenditure has been retained at ₹11.11 lakh crore. This humongous outlay indeed portrays the commitment of the government towards spending on infrastructure—an important driver of long-term growth.
   • Focus on Productivity and Innovation: Much of the budget focuses on improving productivity, social justice, urban development, energy security, and various other reforms. All these measures have taken due care to embark on economic growth by improving the people’s quality of life.

Conclusion

The Budget 2024 has finally tried to strike a much-needed balance between economic and growth concerns. For ideographic and efficient utilization of resources to ensure sustainable growth, some items have been made cheaper and others costlier. This shall be exemplified through measures aimed at job creation, tax rationalization, and infrastructure development—all geared toward a robust and inclusive economy.

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