Daily Current Affairs and GK | 24 July 2024

Topic: Indian Economy

1. Fiscal deficit target reduced to 4.9% in Budget 2024.

• The fiscal deficit target for the current financial year at 4.9% of GDP announced by Union Finance Minister Nirmala Sitharaman.
• This is lower than the 5.1% target set in the interim budget presented on February 1, and also the 5.9% target set for 2023-24.
• The fiscal deficit, which represents the difference between total revenue and total expenditure, reflects the extent of government borrowing required.
• Sitharaman emphasized the government's commitment to fiscal consolidation, aiming to bring down the deficit to below 4.5% of GDP by fiscal year 2025-26.
• A lower fiscal deficit will improve India's sovereign rating update prospects as it will bring the country closer to its target of reducing the deficit to below 4.5% of GDP by fiscal year 2025/26.
• A record surplus transfer of 2.11 trillion rupees ($25.3 billion) from the Reserve Bank of India, more than double the amount estimated in February, has helped the government reduce the fiscal deficit.

Topic: Indian Economy

2. In the Budget 2024, Rs 2 lakh crore allocated to provide employment to 4.1 crore youth in the next 5 years.

• On July 23, Union Finance Minister Nirmala Sitharaman in her budget speech proposed to generate employment for about 4.1 crore youth over the next five years.
• The Finance Minister has allocated Rs 2 lakh crore to support this initiative.
• She allocated Rs 1.48 crore for imparting skills to citizens to create employment opportunities, with a target to skill 20 lakh youth over a period of five years.
• She announced that a total of 1,000 industrial training institutes would be upgraded.
• Sitharaman also proposed a one-time pay for all first-time employees across all sectors, with the incentive provided through direct benefit transfer (DBT).
• Internship opportunities in 500 companies will be started for one crore youth in five years by the government.
• The trainees will get the experience of real life environment and will get an allowance of Rs 5000 per month.
• The companies will bear the training cost, 10% of which will be borne from CSR funds.

(Source: News on AIR)

Topic: Indian Economy

3. Government gave relief to the salaried class on tax slabs and standard deductions.

• A number of income tax reforms have been introduced by the government in the Union Budget 2024-25.

• Its main aim is to simplify income tax laws and promote compliance, and support economic growth.
• Earlier, a taxable income between Rs 3-6 lakh was taxed with an income tax rate of 5%.
• In this budget, this slab has been changed to Rs 3-7 lakh.
• The tax slab for the 10% tax rate has been changed from Rs 6-9 lakh to Rs 7-10 lakh.
• The tax slab for the 15% rate has also been changed from Rs 9-12 lakh to Rs 10-12 lakh.
• Tax rates for income between Rs 12-15 lakh will remain at 20%, and income above Rs 15 lakh will be taxed at 30%.
• The standard deduction has been increased from 50,000 to Rs 75,000.
• The deduction on family pensions has been raised from Rs 15,000 to Rs 25,000 under the new tax regime.
• The TDS rate for e-commerce operators has been reduced from 1% to 0.1%.
• In this budget, the deduction on employers' National Pension System (NPS) contribution to employees' basic salary has been raised from 10 percent to 14 percent.
• The NPS Vatsalya scheme has been announced in this budget. This scheme will allow parents and guardians to invest on behalf of children.
• This initiative will facilitate long-term savings for minors. 

(Source: DD News)

Topic: Indian Economy

4. Government announced rehabilitation and irrigation projects and monetary assistance for flood-affected states.

• In the budget, Union Finance Minister Nirmala Sitharaman announced financial assistance for states severely impacted by floods and other natural calamities.
• This financial assistance will benefit Bihar, Himachal Pradesh, Assam, Uttarakhand, and Sikkim.
• The financial assistance includes an allocation of Rs 11,500 crore for various projects, such as the Kosi-Mechi intra-state link and 20 additional schemes focused on barrages, river pollution control, and irrigation.
• The central government will provide support for flood management and related initiatives in Assam.
• Uttarakhand and Sikkim, which have also been affected by cloudbursts and landslides, will also receive financial assistance.
• The 'Purvodaya' scheme has also been launched to enhance the all-round development of the eastern region, including Bihar, Jharkhand, West Bengal, Andhra Pradesh, and Odisha.
• An Rs 26,000 crore package to support the development of road connectivity projects has been announced for Bihar.