The Union Budget 2024, presented amid high expectations and economic uncertainties, has turned out to be a blend of hope and restraint—a classic mixture of sweetness and bitterness for the common man. While the government made notable strides in infrastructure, digital expansion, and green initiatives, the budget left many citizens feeling the pinch in areas that impact their daily lives directly.
The Sweetness: What Works for the Common Man
1. Infrastructure and Employment Opportunities
One of the standout positives in this year’s budget is the continued emphasis on capital expenditure. With a proposed 15% increase in capital outlay, particularly in roads, railways, and housing, the government is betting on job creation through infrastructure development. For the common man, this could mean more employment opportunities and potentially better connectivity in the near future.
2. Push for Affordable Housing
The announcement of incentives for affordable housing is a welcome step. An additional allocation to the PM Awas Yojana is aimed at making housing more accessible to lower and middle-income families. This aligns with the dream of many Indians who aspire to own a home but are constrained by high real estate costs.
3. Digital Public Infrastructure and Skill Development
Recognizing the importance of skilling in a rapidly digitizing world, the budget includes increased funding for digital literacy programs and new-age skill development. This could empower youth from semi-urban and rural backgrounds to participate more effectively in the digital economy.
4. No Change in Tax Slabs, but Simplification Continues
Though there were no changes in personal income tax slabs, the simplification of the filing process and incentives for those opting for the new tax regime indicate a nudge towards a cleaner, less cumbersome tax environment.
The Bitterness: What Falls Short
1. No Relief in Personal Income Tax
Despite inflation concerns and rising living costs, the budget offered no changes to the personal income tax slabs or deductions under the old regime. For salaried individuals hoping for some tax relief, this was a clear disappointment. The unchanged limits on deductions under Section 80C and lack of standard deduction enhancement failed to address the concerns of the middle class.
2. High Inflation, Low Cushion
With food and fuel prices still on the higher side, the budget did little to directly address inflation control or offer relief on essential commodities. The common man, already grappling with high household expenses, finds little comfort here.
3. Ambiguity on Subsidies
There were visible cuts or stagnation in food, fuel, and fertilizer subsidies. While this may align with the government’s fiscal consolidation goals, it also raises concerns about affordability for economically weaker sections, especially in rural India.
4. Healthcare and Education – Still Underfunded
Although there were marginal increases in allocations, the budget allocations for healthcare and education didn’t reflect the urgency these sectors require. Post-pandemic, the expectation was for a robust push in both areas, particularly for primary healthcare and government schooling infrastructure.
Conclusion: A Balanced Act, But More Hoped For
Budget 2024 is reflective of a government walking a tightrope—balancing fiscal responsibility with welfare commitments. While there are commendable efforts to invest in long-term growth via infrastructure and digitization, the lack of immediate relief in income tax and consumer spending areas adds a tinge of bitterness for the common man.
For the middle class, the budget feels like a wait-and-watch game. The announcements have long-term potential, but the short-term pain points—rising costs, stagnant wages, and unchanged tax structures—remain unresolved.
As always, the true impact of the budget will be seen not just in what is announced but in how effectively it is implemented. Until then, the common man continues to navigate this bittersweet landscape with cautious optimism.