It's that time of the year when businesses, policymakers and the public prepare their wishlists before the government's annual Union Budget in February. Union Finance Minister Nirmala Sitharaman is set to engage in discussions with state and Union Territory (UT) officials in Rajasthan's Jaisalmer on December 20, Zee Business learned from sources. In February, the finance minister is set to present what will be the Narendra Modi 3.0 government's second Budget.

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Typically, the finance minister unveils the Union Budget—an annual financial statement that outlines a government's estimated revenue and expenditure along with key fiscal announcements—in the Lok Sabha, the lower house of Parliament, on February 1. 

In her July 23 Budget, the first Union Budget after the Modi government's return to power for a third back-to-back term, Sitharaman announced a special focus on four key areas: employment skilling, MSMEs and the middle class. 

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The finance minister unveiled Rs 48.2 lakh crore in spending plans for FY25, 1.2 per cent higher than her Interim Budget estimate and aided by a significant transfer of dividends from the RBI, She pegged fiscal deficit at 4.9 per cent of GDP for the financial year.

Sitharaman also announced the allocation of Rs 2 lakh crore for job creation over the next five years.

Here are some major takeaways from the July 2024 Budget: 

  • Rs 2 lakh crore allocation for job creation over 5 years
  • FY25 GDP growth pegged at 10.5 per cent versus 9.6 per cent in the previous year
  • FY25 fiscal deficit target revised to 4.9 per cent of GDP from 5.1 per cent in Interim Budget
  • Aim to contain fiscal deficit below 4.5 per cent by FY26
  • Corporate tax rate lowered to 35 per cent for foreign firms from 40 per cent
  • Import tax on gold and silver decreased to 6 per cent from 15 per cent 
  • Capital gains tax rate raised for equity investments held for less than one year to 20 per cent from 15 per cent
  • Capital gains tax rate increased for shares held for more than one year to 12.5 per cent from 10 per cent 
  • Import tax cut on mobile phones from 20 per cent to 15 per cent 

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