Union Budget 2024: Finance Minister Nirmala Sitharaman is set to reveal the new budget in July, although the exact date is still under wraps. As we inch closer to this significant event, the air is thick with anticipation and speculation. Experts and analysts from various sectors are sharing their predictions, expectations, and concerns, fueling the excitement surrounding the forthcoming financial plan. Economists are keenly watching for measures that address pressing issues such as inflation control, job creation, and economic growth. Industry leaders are hoping for policies that will boost investment and drive innovation, while social sector advocates are calling for increased spending on health, education, and social welfare programs. The agricultural community is also eager to see how the budget will address their needs, with hopes for better support and infrastructure development. Stay with us as we navigate through the intricacies of the budget and unpack what it means for the nation’s financial future.
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Earlier this week, the President mentioned that alongside significant economic and social decisions, the upcoming budget will also include many historic steps.
As the Union Budget 2024 approaches, reports indicate that salaried individuals are hoping for tax relief through lower tax rates, updated income tax slabs, and higher deductions. According to The Times of India, one notable relief is the potential inclusion of more non-metropolitan cities in the list of places eligible for a 50% house rent allowance (HRA) exemption.
Union Minister Bhagirath Choudhary on Saturday expressed that the upcoming five years under the new National Democratic Alliance government will be marked as a golden era of development.
Reports suggest that salaried people anticipate tax relief in the form of lower tax rates, updated income tax slabs, and higher deductions as the Union Budget 2024 draws near. The Times of India reports that the addition of more non-metropolitan cities to the list of places eligible for a 50 per cent house rent allowance (HRA) exemption is one noteworthy relief.
The Maharashtra government presented the budget for 2024-25 on Friday. Here are the key highlights:
– Slashing value-added tax (VAT) on fuel in the Mumbai Metropolitan Region.
– Waiving electricity bill dues for 44 lakh farmers.
– Providing a monthly allowance of ₹1,500 to women aged 21 to 60.
– Offering three free LPG cylinders annually for a family of five.
– Introducing a stipend of ₹10,000 per month for youth undergoing skill training.
– Announcing a policy tailored for the third gender.
India’s factory output growth, as measured by the Index of Industrial Production (IIP), fell 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.
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. The strength of our banks enables them to expand their credit base and contribute to the economic development of the nation,” she said.
“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,” she added.
The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is an initiative by the central government 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. The scheme aims to ensure financial assistance to farmers between crop cycles and promote sustainable agricultural practices across India.
From institutional landholders to people receiving monthly pensions of Rs 10,000 to professionals like lawyers, doctors, engineers and more are excluded from the PM-KISAN scheme.
As per sources from CNBC-Awaaz, the upcoming Union Budget is expected to include several measures aimed at boosting textile exports and making Indian products more competitive. These measures may include tax relief and capital support.
One of the proposed measures is the removal or reduction of the basic customs duty on imported organic cotton and long staple cotton, which are essential raw materials for the apparel industry. Currently, these products are subject to a 5 percent basic customs duty and an additional 5 percent duty.
While there is no official announcement on the date of the presentation of the Budget yet some of the key aspects to watch out for include:
1. Schemes: The first Budget by the Modi 3.0 Cabinet is expected to be high on the welfare agenda. Most industry experts believe that several income support schemes might be in the pipeline and facilities in line with PM Kisan Yojana may be planned to boost incomes of deprived families.
2. Capex: The gradual slowing of public capita expenditure has been a point of concern after the Interim Budget. The private corporations have been doing most of the heavy lifting. However, going forward in this new Budget for FY25, the street expects to see some significant boost to Capex.
3. Increasing Healthcare & Education Spend: The other segment that’s expected to receive a boost is the allocation for Healthcare and Education. Both these sectors have been highlighted as the key growth areas.
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. 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.
The Maharashtra government presented the budget for 2024-25 on Friday. Here are the key highlights:
– Slashing value-added tax (VAT) on fuel in the Mumbai Metropolitan Region.
– Waiving electricity bill dues for 44 lakh farmers.
– Providing a monthly allowance of ₹1,500 to women aged 21 to 60.
– Offering three free LPG cylinders annually for a family of five.
– Introducing a stipend of ₹10,000 per month for youth undergoing skill training.
– Announcing a policy tailored for the third gender.
The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is an initiative by the central government 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. The scheme aims to ensure financial assistance to farmers between crop cycles and promote sustainable agricultural practices across India.
From institutional landholders to people receiving monthly pensions of Rs 10,000 to professionals like lawyers, doctors, engineers and more are excluded from the PM-KISAN scheme.
India Inc, during the pre-Budget consultation with Finance Minister Nirmala Sitharaman, emphasised on several key priorities for the upcoming Union Budget. These included reducing the tax burden on the common man, sustaining capital expenditure, and implementing measures to curb food inflation. Additionally, industry leaders and associations urged the government to prioritize infrastructure development to uphold economic growth, while also underscoring the importance of supporting the MSME sector, crucial for both the Indian economy and employment generation.
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. The strength of our banks enables them to expand their credit base and contribute to the economic development of the nation,” she said.
“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,” she added.
This week, the President also announced that the upcoming budget will feature several historic initiatives in addition to important economic and social decisions.
India’s factory output growth, as measured by the Index of Industrial Production (IIP), fell 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.
In her first speech to the joint session of Parliament after the 18th Lok Sabha was formed, the President outlined the economic strategy of the NDA administration and emphasised the accomplishments of the previous ten years under Prime Minister Narendra Modi.
Reports suggest that salaried people anticipate tax relief in the form of lower tax rates, updated income tax slabs, and higher deductions as the Union Budget 2024 draws near. The Times of India reports that the addition of more non-metropolitan cities to the list of places eligible for a 50 per cent house rent allowance (HRA) exemption is one noteworthy relief.
Government-Funded Infrastructure for Startups: “Like China and other developed countries, we expect the government to fund infrastructure that provides all basic facilities to handhold startups during their initial period. Creating startup hubs with state-of-the-art facilities, co-working spaces, and access to essential services can significantly reduce operational costs and provide a nurturing environment for innovation and growth,” says Ajay Goyal, Founder and CEO, Erekrut.
With the Union Budget 2024 on the horizon, salaried individuals are hopeful for tax relief in the form of reduced tax rates, revised income tax slabs, and increased deductions. The Times of India reports that a significant relief measure could be the inclusion of additional non-metro cities in the list eligible for a 50 percent house rent allowance (HRA) exemption.
According to sources from CNBC-Awaaz, the upcoming Union Budget is expected to include several measures aimed at boosting textile exports and making Indian products more competitive. These measures may include tax relief and capital support.
One of the proposed measures is the removal or reduction of the basic customs duty on imported organic cotton and long staple cotton, which are essential raw materials for the apparel industry. Currently, these products are subject to a 5 percent basic customs duty and an additional 5 percent duty.
The government plans to sell small stakes in select state-run companies within the rail, fertilizer, and defense sectors, including Mazagon Dock Shipbuilders Ltd, through offer for sale (OFS) in the current fiscal year, according to a senior government official. Additionally, the Centre is considering divesting small stakes in Indian Railway Finance Corp. (IRFC), National Fertilizers Ltd (NFL), and Rashtriya Chemicals and Fertilizers Ltd (RCF) in FY25, the official said on condition of anonymity.
The share of central sector schemes in the government’s total expenditure has risen after the pandemic, while that of centrally sponsored schemes has declined during this period.
A Moneycontrol analysis of the past few years’ budgets reveals that the share of central sector schemes increased to 32.2 percent in FY24 from 27.4 percent in FY18. Conversely, the share of centrally sponsored schemes decreased to 10.5 percent from 13.3 percent during the same period.
The Budget process begins with the Finance Minister’s address in the Lok Sabha, presenting a comprehensive vision for the upcoming fiscal year. Part A of the speech outlines ambitious strategies across sectors critical to India‘s development, including:
– Agriculture
– Healthcare
– Education
– Infrastructure
– Small and large enterprises
– Service industry
– Women empowerment
– Startups
– Banking and financial services
– Capital markets
This section not only highlights the government’s reform agenda but also sets specific targets, such as managing fiscal deficits and formulating strategic borrowing plans to stimulate economic growth.
As the Union Budget 2024 approaches, reports indicate that salaried individuals are expecting tax relief through reduced tax rates, revised income tax slabs, and increased deductions. One notable relief, according to The Times of India, is the inclusion of more non-metro cities in the list for 50 percent house rent allowance (HRA) exemption.
In her inaugural address to the joint session of Parliament following the formation of the 18th Lok Sabha, President detailed the NDA government’s economic vision and highlighted the achievements of the past decade under Prime Minister Narendra Modi.
The forthcoming budget under Modi 3.0 is poised to significantly transform the education landscape in India. With a strong emphasis on digital literacy, vocational training, and research innovation, this budget aims to bridge the urban-rural divide and ensure equitable access to quality education for all. The integration of advanced technologies and the promotion of STEM education are designed to equip the youth with the necessary tools to thrive in a competitive global economy. Additionally, the focus on public-private partnerships will enhance both the quality and reach of educational services. Under Modi’s visionary leadership, this budget promises to lay a robust foundation for a knowledgeable and skilled India, ready to face future challenges with confidence and resilience,” says Ankur Goel, CEO and Founder of Skillible.
The President this week also mentioned that alongside significant economic and social decisions, the upcoming budget will also include many historic steps.
“India is contributing 15 per cent to the global economy. In the upcoming sessions, this government is going to present the first budget of this term. This budget will be an effective document of the government’s far-reaching policies and futuristic vision,” President Murmu said recently while addressing a joint sitting of the Lok Sabha and Rajya Sabha.
