Today, our Finance Minister Nirmala Sitharaman annouced the Full Union Budget for 2024. Let's straightaway dive into the highlights of the July 2024 budget.

Boosting Rural Demand and Agriculture

The government is all about giving a push to rural demand this year. They're focusing on creating jobs and launching schemes to boost agriculture's productivity and resilience. Agriculture, fisheries, and the 2-wheeler sector are getting special attention. These sectors play a big part in building a prosperous India and should positively impact consumer goods companies. Additionally, changes in personal income tax aim to put more money in our pockets, enhancing our spending power.

More Spending on Infrastructure

This year, the government plans to spend 3.4% of the budget on capital expenditure (capex), up from 3.2% last year and almost double what it spent five years ago. However, there's no extra allocation from the interim budget, which might not be viewed positively by everyone.

Here's a quick comparison:

Year	Capex Spending (% of Budget)
Previous Year	3.2%
2024	3.4%

Supporting Small Businesses

The budget provides special attention to MSMEs (Micro, Small, and Medium Enterprises) and manufacturing. Through credit guarantees and facilitating term loans, the government is ensuring these small businesses can continue their focus on growth.

Focus on Allies

Political allies have influenced the budget, with special allocations for states like Andhra Pradesh and Bihar. This is notable after ten years of a single government without allied influence.

Energy Initiatives

The government's focus on energy continues, with ongoing support for power storage, solar energy, and nuclear reactors.

Tourism Development

Tourism remains a priority, especially with continued investment in temple development. This ongoing focus is seen as a positive move.

Land Reforms

Land reforms, which have been long overdue, are a welcome move. We'll need to look at the finer details to understand their full impact.

Changes in Capital Gains Tax

Capital gains tax changes significantly impact the market. Given the large inflows, these changes were expected. The government has introduced additional Securities Transaction Tax (STT) and adjusted the rates for short-term and long-term capital gains, broadening the tax base to increase collections.

So, that's the 2024 budget in a nutshell! It's got a little something for everyone, with a special focus on rural areas, small businesses, and infrastructure while tweaking taxes to boost government revenue. What do you think of these changes?