Union Budget 2024 draws mixed reactions: 51% citizens say meeting expectations, 49% call it below expectations

The Union Budget 2024 has drawn mixed reactions from citizens. A survey by LocalCircles, which collected over 16,000 responses from people across 227 districts in India, reveals a nearly even split in public opinion. According to the survey, 51% of respondents rated the budget as meeting or exceeding expectations, while 49% felt it was below expectations.

40% of respondents believe the budget will boost consumer spending, 25% think it will create new infrastructure, and smaller percentages see benefits in agriculture productivity and innovation. However, 20% of respondents felt the budget would do none of the above.

Finance Minister Nirmala Sitharaman presented the Union Budget 2024 on July 23, highlighting nine key areas aimed at generating employment and increasing incomes in both urban and rural areas. The budget emphasized entrepreneurship and included a substantial allocation of Rs 11,11,111 crore towards capital expenditure, which is 3.4% of the GDP.

The standard deduction for the salaried class under the new income tax regime has increased from Rs 50,000 to Es 75,000. However, the finance minister announced a review of the Income Tax Act, suggesting potential future changes to simplify the tax regime.

The government has also reduced corporate tax on foreign companies from 40% to 35% to attract more investment. However, the new capital gains tax structure has sparked mixed reactions. The long-term capital gains tax (LTCG) on property sales has been reduced from 20% to 12.5%, but the removal of the indexation benefit may result in higher taxes for sellers. Additionally, the LTCG on financial and non-financial assets has increased from 10% to 12.5%, and short-term capital gains tax (STCG) on some assets has risen from 15% to 20%.