Budget 2024 Date Highlights: While reports suggested that Finance Minister Nirmala Sitharaman is all set to table the Union Budget for FY25 on July 23 or 24, there is still no official announcement of the date of the Budget presentation by the government. Moving closer to the date of the Budget presentation, there is a slew of expectations, demands and anticipation from people, industries, and economists alike.
Meanwhile, the first session of the 18th Lok Sabha has already commenced on June 24 and later on June 26, Om Birla, a three-time BJP MP, was re-elected as the Lok Sabha Speaker for a second term. He won against the INDIA bloc’s candidate, Congress’ Kodikunnil Suresh, through a voice vote. The Monsoon Session of the Parliament, according to sources, is expected to begin on July 22 and the Budget presentation will coincide with this. The session is likely to continue until August 9.
Earlier on June 22, Nirmala Sitharaman presided over the 53rd GST Council meeting, which deliberated on various proposals to streamline GST applicability across goods and services, and several recommendations were made to refine tax rates and service exemptions under the GST regime.
Sources have indicated that the full Budget for 2024-25 may be presented on July 24 during the Monsoon Session of Parliament, with the Economic Survey potentially being tabled on July 23.
Although the final dates will be announced soon, sources noted that it is customary for there to be at least a 15-day gap between two sessions of Parliament.
In the upcoming Union Budget 2024-25, the government is anticipated to maintain its focus on infrastructure development. A report by Mint suggests that there may be plans to increase capital expenditure allocations for the Ministry of Road Transport and Highways (MoRTH) for FY25.
Biocon and Biocon Biologics Executive Chairperson Kiran Mazumdar-Shaw has expressed her expectations of the upcoming budget. In case of the pharmaceutical and biotech sectors, she said, “much like the production-linked incentive scheme, there is need for a research-linked incentive scheme. Encouraging research and innovation is essential. It’s the only way for Indian medicines to advance up the value chain through groundbreaking research, positioning India as a hub for new drug discovery and development. Additionally, it’s vital to expand and scale existing operations.
Ahead of the Union Budget 2024, leaders in the healthcare industry are anticipating a significant increase in the overall health budget.
Bhanu Prakash Kalmath S J, Partner at Grant Thornton Bharat, told Financial Express.com that the Interim Budget 2024 highlighted the government’s healthcare priorities through initiatives such as coverage of ASHA workers and Anganwadi workers and helpers under the Ayushman Bharat Scheme, the U-WIN immunization platform, and the cervical cancer vaccination drive. He noted that the upcoming full budget presents an opportunity for further progress towards the goal of ‘Viksit Bharat’.
India’s current account balance recorded a surplus of $5.7 billion or 0.6% of the GDP in Q4FY24 as against deficits of $8.7 billion (1%) in the previous quarter, and $1.3 billion (0.2%) in the year-ago period, the RBI said. The last time the account saw a surplus was in Q1FY22 (0.9% of GDP). The merchandise trade deficit at $50.9 billion in Q424 was lower than $ 52.6 billion a year ago.
Fitch Ratings has raised India’s GDP growth projection for FY25 to 7.2% from an earlier estimate of 7%. This is mainly due to the assumption of recovery in consumer spending. In its June ‘Global Economic Outlook’ report, Fitch Ratings said that investments will continue to rise but “more slowly” than in recent quarters in FY25, while consumer spending will “recover with elevated consumer confidence”.
India’s factory output growth, as measured by the Index of Industrial Production (IIP), dropped to a three-month low of 5% in April as against 5.4% in March due to a drop in manufacturing activity, data released by the National Statistical Office (NSO) showed. Manufacturing output’s growth during April eased to 3.9% from 5.8% in March, whereas mining growth rose to 6.7% from 1.3%. Electricity output’s growth also increased to 10.2% in April from 8.6% in March.
Gross Goods and Services Tax (GST) collections came in at Rs 1.74 trillion in June (May transactions), up 8% on year, according to government sources. This was against Rs 1.73 trillion collected in the previous month. The year-on-year growth rate during June was the slowest in around three years. In May, the growth rate was 10%, the slowest in 34 months.
During June, the government settled Rs 39,586 crore to the Central GST from Integrated GST collections, and Rs 33,548 crore to State GST, the source said.
India’s manufacturing activity rose to 58.3 in June, recovering from a three-month low of 57.5 in May, indicating a sharper improvement in business conditions, data released by S&P Global on Monday showed.
The June data showed that the buoyant demand conditions spurred the expansions in new orders, output and buying levels. This led to the fastest rate of hiring in more than 19 years despite inflationary pressures remaining elevated, the survey reported.
India’s CPI inflation is expected to ease further in July and August 2024 after it fell to 4.75 per cent in May from 4.83 per cent in April, economists said. This will be driven by an early onset of the Southwest Monsoon. Economists also maintained FY2025 average inflation estimate at around 4.4 per cent. The Southwest Monsoon has seen an early onset in Kerala (June 1) and Northeast India (June 5) by two and six days, respectively, over the normal onset date. The rain marks the commencement of its four-month sojourn which brings in 75% of the country’s annual rainfall.
India’s retail inflation, based on the Consumer Price Index (CPI), fell to a 12-month low of 4.75% in May. It was at 4.83% in April. This was driven mainly due to the high base effect and easing food prices, data released by the National Statistical Office (NSO) showed. Food inflation during May decreased marginally to 8.69% from 8.70% in April. The drop in inflation was witnessed in spices, meat and fish, sugar, milk and products, and even vegetables, though slightly.
India’s wholesale price index (WPI)-based inflation accelerated to 2.61 percent in May, primarily driven by an increase in prices of food articles, manufacturing of food products, crude petroleum and natural gas, mineral oils, and other manufacturing, said the provisional data released by the Ministry of Commerce & Industry. In April, WPI inflation was at 1.26 per cent.
While the blog, till now, stated facts about and speculations on the probable date when the finance minister Nirmala Sitharaman is expected to present the Union Budget, let’s have a look at the state of Indian economy and various economic metrics that will affect the announcements in the Budget document.
Kiran Mazumdar-Shaw, Executive Chairperson, Biocon and Biocon Biologics, said that, for the pharmaceutical and biotech sector, “much like the production-linked incentive scheme, there is need for a research-linked incentive scheme.” Encouragement to research and innovation is crucial. “A research- linked incentive scheme with scope for tax deductions can be a key enabler for pharmaceutical companies to invest in research and innovation. The journey from lab to market is long and arduous and therefore tax incentives for investing in research and innovation can play a very important role,” she said.
While addressing a joint sitting of Parliament, President Droupadi Murmu said that 10 years ago, to save India’s banking sector from collapsing, the government brought banking reforms and made laws like IBC. “Today, these reforms have made India’s banking sector one of the strongest banking sectors in the world. Our public sector banks are robust and profitable today. Profits of public sector banks have crossed Rs 1.4 lakh crore in 2023-24 which is 35% higher than last year,” she said.
She further added, “The NPAs of Public Sector banks are also continuously decreasing. Today SBI is earning record profits, LIC is stronger than ever, HAL is also giving strength to the country’s defence industry.”
In her address in the Parliament, President Droupadi Murmu said that the resolve of ‘Reform, Perform and Transform’ has made India the fastest growing economy in the world. “In 10 years, India rose from the 11th position to become the 5th largest economy…Despite the COVID-19 pandemic and conflicts in different parts of the world, India has been able to achieve this growth rate. This became possible due to the reforms and decisions taken in national interest in the last 10 years.” She further added that India is at present contributing to 15% of the global growth. “My government is working towards making India the 3rd largest economy in the world,” she said.
While addressing a joint sitting of Parliament, President Droupadi Murmu said that the Union Budget will be a futuristic document and all reforms will be fast-tracked. She said, “My Government will present its first budget in the forthcoming session. This budget will be an effective document of the Government’s far-reaching policies and futuristic vision. Along with major economic and social decisions, many historic steps will also be seen in this budget. The pace of reforms will be further accelerated in tune with the aspirations of people of India for rapid development.”
The Pradhan Mantri Kisan Samman Nidhi is an initiative by the government. It was launched to provide direct income support of Rs 6,000 annually to small and marginal farmers. The support is disbursed in three equal installments directly into the bank accounts of eligible farmers, and is aimed to ensure financial assistance to farmers between crop cycles and to promote sustainable agricultural practices across India.
During the interim budget presentation earlier in February, Finance Minister Nirmala Sitharaman had said that the government has set a fresh record for infrastructure outlay by earmarking Rs 11.11 lakh crore, topping the existing high of Rs 10 lakh crore allocated during fiscal 2023-24. This amounted to 3.4 per cent of the GDP.
Finance Minister Nirmala Sitharaman provided Rs 86,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme, retaining it at the same level as provided for in the revised estimate for 2023-24, in her interim budget speech on February 1. She pointed out that the CAG has already commented on the way MGNREGA is operating in some States, where claims are reaching a stage where they need to be verified. “Are they [those getting wages] really people existing on the ground?…and other questions critical to the very letter and spirit of the program.”
Finance Minister Nirmala Sitharaman had presented the Interim Budget which is a vote on account ahead of the elections to take care of government expenses in the interim till a new Government is formed.
The proportion of central sector schemes in the government’s total expenditure has increased post-pandemic, while that of centrally sponsored schemes has declined during this period. According to a Moneycontrol analysis of recent budgets, the share of central sector schemes rose to 32.2 percent in FY24 from 27.4 percent in FY18. In contrast, the share of centrally sponsored schemes fell to 10.5 percent from 13.3 percent over the same period.
In her inaugural address to the joint session of Parliament following the formation of the 18th Lok Sabha, the President detailed the economic strategy of the NDA administration and highlighted the achievements of the past decade under Prime Minister Narendra Modi.
The upcoming Modi 3.0 budget aims to revolutionize India‘s education sector, focusing on digital literacy, vocational training, and research innovation to bridge the urban-rural divide and provide equitable access to quality education. Emphasizing advanced technologies and STEM education, it seeks to prepare youth for the global economy. Public-private partnerships will further enhance educational quality and reach. According to Ankur Goel, CEO and Founder of Skillible, this budget under Modi’s leadership will build a strong foundation for a knowledgeable and skilled India, ready to tackle future challenges.
The proportion of central sector schemes in the government’s total expenditure has increased post-pandemic, while that of centrally sponsored schemes has declined during this period. According to a Moneycontrol analysis of recent budgets, the share of central sector schemes rose to 32.2 percent in FY24 from 27.4 percent in FY18. In contrast, the share of centrally sponsored schemes fell to 10.5 percent from 13.3 percent over the same period.
Suchita Vishnoi, co-founder and CMO at GatewAI, says, “As India gears up for the upcoming budget, the tech industry anticipates a transformative phase that could set new benchmarks for innovation and growth. Expectations are high for increased allocations towards digital infrastructure, artificial intelligence, and cybersecurity, aiming to bolster India’s position as a global tech hub. Industry leaders are hopeful for incentives to spur investments in startups and emerging technologies, furthering the vision of a digitally empowered society. Streamlined regulatory frameworks and policies promoting ease of doing business are anticipated to foster a thriving entrepreneurial ecosystem, driving sustainable growth and business innovation.”
On June 25, Finance Minister Nirmala Sitharaman chaired the seventh pre-Budget consultation with representatives of trade and services in New Delhi to gather suggestions for the upcoming General Budget 2024-25. The meeting was also attended by the Union Minister of State for Finance, the Finance Secretary and Secretary of the Department of Expenditure, the Secretaries of the Department of Economic Affairs and the Ministry of Commerce and Industry, as well as the Chief Economic Adviser to the Government of India.
Finance Minister Nirmala Sitharaman in the Interim Budget highlighted that attention to the Eastern region which includes Chhattisgarh, Odisha, Bihar Jharkhand and West Bengal is required.
An interim budget is presented by a government that is either in its final year before general elections, undergoing a transition, or nearing the end of its term. This budget includes a comprehensive account of all projected expenditures and expected revenue from taxes for the upcoming months leading up to the elections. An incumbent government is not permitted to present a full budget during this period.
Earlier this year, FinMin Nirmala Sitharaman had presented the Interim Budget which is a vote on account ahead of the elections to take care of government expenses in the interim till a new Government is formed.
However, according to sources, Finance Minister Nirmala Sitharaman will present the full Budget for FY25 on July 23 or 24, coinciding with the Monsoon Session of the Parliament.
