Middle Class Benefits in Budget 2024-25: Free Electricity, Housing Schemes, and Tax Breaks

Finance Minister Nirmala Sitharaman presented the Union Budget for 2024-25 on Tuesday, with a strong focus on addressing the needs of the middle class. The budget introduces significant measures such as free electricity, affordable housing, and tax relief aimed at fulfilling the expectations of this vital segment of society. Here's a detailed look at the key benefits announced for the middle class:

Union Budget for 2024-25 Addressing Housing Needs

In her budget speech, Finance Minister Nirmala Sitharaman highlighted the expansion of the Pradhan Mantri Awas Yojana, which will see the construction of an additional three crore houses in both rural and urban areas. This initiative, known as Pradhan Mantri Awas Yojana 2.0, represents a substantial investment of Rs 10 lakh crore. It aims to provide housing for one crore urban poor and middle-class families, with Rs 2.2 lakh crore of central assistance allocated over the next five years. The budget also includes an interest subsidy to ensure affordable loans for these homes, making homeownership more accessible for the middle class.

Pradhan Mantri Suryaghar Free Electricity Scheme

A major highlight for the middle class is the introduction of the Pradhan Mantri Suryaghar Free Electricity Scheme. This innovative program aims to install solar panels on rooftops, providing free electricity to millions of households. Under this scheme, up to 300 units of electricity per month will be provided free of charge to one crore homes, encouraging the use of renewable energy and reducing household electricity expenses.

Tax Relief for Salaried Individuals

The budget also brings significant tax relief for salaried individuals. Under the new tax regime, income up to Rs 3 lakh is exempt from tax, while income between Rs 3 lakh to Rs 7 lakh will be taxed at a reduced rate of 5%. Additionally, the standard deduction has been increased from Rs 50,000 to Rs 75,000, providing further financial relief to the salaried middle class.

Financial Assistance for Higher Education Loans

To support higher education, the Finance Minister Nirmala Sitharaman announced financial assistance for loans up to Rs 10 lakh for students attending domestic institutions. Additionally, e-vouchers offering a 3% annual interest subsidy on loan amounts will be issued to 1 lakh students each year. This measure aims to make higher education more affordable and accessible for middle-class families.

Reduced Costs for Mobile Phones and Parts

India’s mobile phone industry has experienced significant growth, with domestic production tripling and exports soaring over the past six years. To benefit consumers, the budget proposes reducing the basic customs duty (BCD) on mobile phones, PCBAs, and chargers to 15%. This reduction will make mobile phones and their components more affordable, benefiting a large section of the middle class.

Increased MUDRA Loan Limit

For entrepreneurs who have successfully availed and repaid loans under the ‘Tarun’ category, the MUDRA loan limit has been increased from Rs 10 lakh to Rs 20 lakh. This increase encourages further business growth and entrepreneurship among the middle class, providing greater access to capital for expanding their ventures.

Affordable Cancer Drugs

To make cancer treatment more affordable, the government has exempted customs duty on three critical cancer drugs—Trastuzumab deruxtecan, Osimertinib, and Durvalumab. This exemption aims to reduce the costs of these life-saving medications, making them more accessible to the general public, including middle-class families.

Conclusion

The Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman brings a wave of positive changes, particularly for the middle class. With measures like the expansion of affordable housing through Pradhan Mantri Awas Yojana 2.0, the introduction of the Pradhan Mantri Suryaghar Free Electricity Scheme, and significant tax relief for salaried individuals, the budget aims to address some of the most pressing needs of this crucial demographic.

The focus on education, with financial assistance for higher education loans, further underscores the government's commitment to empowering the middle class. Additionally, the reduction in customs duty on mobile phones and parts is set to make essential technology more accessible, while the increased MUDRA loan limit encourages entrepreneurship and business growth. The exemption of customs duty on vital cancer drugs highlights the government's effort to make healthcare more affordable and accessible.

In essence, the Union Budget 2024-25 is a comprehensive package designed to support the middle class, ensuring better housing, energy independence, financial relief, and access to education and healthcare. These measures are poised to enhance the quality of life for millions of middle-class families across India, reflecting the government's dedication to inclusive growth and development.