Union Budget is also known as annual financial statement. It is a statement of Receipts and Expenditure of the government in a particular year. Budget 2024-Key Highlights for Share Market , in this article we tried to point out key factors of this Union Budget for stock market. Continuing from first statement, There are 2 kinds of revenue receipts tax and non-tax revenue. Revenue expenditure is the expenditure incurred on day-to-day administration of the government. If the revenue expenditure exceeds the revenue receipts, then the government incurs a revenue deficit.
Budget 2024-Key Highlights for Share Market
Key Points:
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Capital Gain On share market income Increased.
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STCG increased from 15% to 20%.
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LTCG from 10% to 12.5% Exemption increases from 1,00,000 to 1,25,0000 Lakh.(Thresh hold)
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STT on Future and Options increased to 0.02%.
Nirmala Seetharaman announced that long-term capital gains on all financial and non-financial assets will have updated a tax rate of 12.5% from 10% earlier.
Where as short-term capital gains tax have been increased to 20% earlier. Additionally, the limit of exemption for capital gains will be set at ₹1.25 lakh per year.
She also mentioned that declared that STT rate from 0.01 percent to 0.02 percent. So, after implementing this budget proposal, equity and index traders will have to pay double the tax for their trade.
Budget History and importance:
Capital Budget includes capital receipts and payments of the government.
Loans from public, foreign governments and RBI form a major part of the government’s capital receipts. Capital expenditure is the expenditure on development of machinery, equipment, building, health facilities, education etc. Fiscal deficit is incurred when the government’s total expenditure exceeds its total revenue.
The word budget has its origin in French word Bougette, means leather briefcase. In 2019 Nirmala Seetharaman presented first budgets she replaced budget briefcase into ‘’bahi kata’’.
Objectives:
The objective of the union budget is bringing about rapid and balanced economic growth of our country with equality and social justice.
The objective is to ensure to reduce the unemployment and poverty, efficient allocation of resources, reduce wealth and income disparities, keep a note on price and tax structure.
Budget classifications:
Union budget contains the details of receivables and payables of the government. It includes 2 major types they are
- Capital Budget
Capital budget includes the capital receipts and payments of the government. capital receipts include loan from public and capital payments includes expenses on health facilities, development and maintenance of equipment and educational facilities.
- Revenue Budget
Revenue budget includes receipts and revenue expenditure. In revenue receipts it includes tax and nontax revenue, grants and interest earned.
Revenue expenditure includes salaries, subsidies, pensions, maintenance cost etc., examples welfare schemes, healthcare expenses, salaries on government employees and subsidies.
Finance Minister Nirmala Sitharaman is scheduled to deliver her budget speech on Tuesday at 11 am in New Delhi. Prime minister Modi said the budget will set out policies over the next 5 years that focuses on the youth, farmers, poor people and women. This year budget is mainly focusing on expanding capital investment in areas like infrastructure, construction, manufacturing, green energy, clean energy technologies and defense and aerospace this sector mainly focusing on growth.
Conclusion
While the Capital Budget contributes to long-term economic growth and development, the Revenue Budget ensures the smooth functioning of government operations and public service delivery. Both budgets play critical roles in managing financial resources, balancing expenditures, and addressing the diverse needs of the country.
Frequently Asked Questions:
- What is budget time today?
It starts from 11 am on July 23 2024
2 . Who is finance Minister of India?
Its Nirmala Seetharaman who is current FM of India.
3 . Which shares will boom after budget 2024?
Kaveri Seed Company, Avanti Feeds, Coastal Corporation, Zeal Aqua, and BKV Industries went up today as Agriculture sector got ₹1.52 trillion in todays Budget.
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