Budget Expectations 2024: What experts, businesses, people want from FM Nirmala Sitharaman's upcoming Budget
Union Budget 2024 Expectations Latest News, Budget Expectation: As the country awaits Finance Minister Nirmala Sitharaman to reveal what’s in store for the economy as a whole, policymakers, economists, businesses, and the common man in the form of the government’s Union Budget for the coming financial year, 2024-25, expectations are rife—once again—that the annual event may spell good news for everyone. Various experts, industry bodies, and analysts have laid out their Budget expectations days ahead of the presentation of the Interim Budget 2024-25 by the finance minister in Parliament on February 1, 2024.
ALSO READ: FM kicks off Interim Budget process with 'halwa' ceremony
ALSO READ: No big change likely in gross borrowings
ALSO READ: Analysts suggest buying these infra stocks ahead of Interim Budget
Here are the latest updates on what industries, experts, analysts, economists, and investors want from the Union Budget 2024, scheduled to be presented in Parliament on February 1, 2024:
Union Budget 2024 Expectations Latest News, Budget Expectation: As the country awaits Finance Minister Nirmala Sitharaman to reveal what’s in store for the economy as a whole, policymakers, economists, businesses, and the common man in the form of the government’s Union Budget for the coming financial year, 2024-25, expectations are rife—once again—that the annual event may spell good news for everyone. Various experts, industry bodies, and analysts have laid out their Budget expectations days ahead of the presentation of the Interim Budget 2024-25 by the finance minister in Parliament on February 1, 2024.
ALSO READ: FM kicks off Interim Budget process with 'halwa' ceremony
ALSO READ: No big change likely in gross borrowings
ALSO READ: Analysts suggest buying these infra stocks ahead of Interim Budget
Here are the latest updates on what industries, experts, analysts, economists, and investors want from the Union Budget 2024, scheduled to be presented in Parliament on February 1, 2024:
Latest Updates
Budget Expectations 2024: Capex focus to continue, says economist
Bank of Baroda's Sonal Badhan believes the central government is likely to continue to prioritise capex in order to push investments and improve the quality of expenditure.
"Even RBI’s monthly bulletin highlights that this has helped crowd in more private investments. The report highlighted that high corporate profitability has led to increased creation of fixed assets. Home sales have also picked up pace, and the rate of real fixed investment in FY24 was at a record high. We thus estimate an around 20 per cent jump (Rs 10.1 lakh crore estimated in FY24) in capex to Rs 11.5-12 lakh crore in FY25. Revenue expenditure on the other hand is estimated to increase less substantially to Rs 37.3 lakh crore from estimated Rs 35.2 lakh crore in FY24," according to the economist.
Budget Expectations 2024: BoB estimates Budget size at Rs 49-50 lakh crore
Bank of Baroda economist Sonal Badhan says the size of the upcoming Budget, scheduled to be presented in Parliament on Thursday, February 1, is likely to stand in the range of Rs 49-50 lakh crore.
Budget Expectations 2024: BoB expects Rs 1.5-2 lakh crore incremental increase in capex
According to Bank of Baroda economist Sonal Badhan, the markets will keep a watchful eye on the government’s borrowing program, which is anticipated to increase only marginally next year.
Budget Expectations 2024: Steering rural growth & investment likely among key themes, says BoB economist
Bank of Baroda economist Sonal Badhan believes that given the weaker-than-expected monsoon in FY24 and muted rabi sowing, the government, through its upcoming Budget, will aim to give rural growth a boost. Government capex is also expected to maintain a healthy pace of growth to give a nudge to private investments, the economist adds.
To support these agendas, Badhan believes the government may:
- Increase the budget allocation for PM Kisan Samman Nidhi (PM-KISAN) scheme from Rs 60,000 crore in FY24BE to around Rs 70,000-75,000 crore in FY25
- Increase the Budget allocation for MG-NREGA scheme from Rs 60,000 crore in FY24BE to around Rs 80,000- 85,000 crore in FY25
- Provisions under affordable housing (rural and urban) are expected to touch around Rs 1 lakh crore from Rs 80,000 crore (FY24BE)
- Measures to incentivise homes to switch to solar power
- Next set of FAME subsidies
- Retain focus on capex and increase it to around Rs 11.5-12 lakh crore
Budget Expectations 2024: Centre to focus on policy continuity, says BoB economist
Bank of Baroda economist Sonal Badhan believes the government is likely to focus on maintaining the continuity of policies while committing itself to the path of fiscal consolidation. "We expect centre to achieve its fiscal deficit target of 5.9 per cent in FY24, with risks titled to the upside," Badhan says.
Budget Expectations: CII proposes a dedicated investment ministry
Fair trade regulator has recommended the establishment of a comprehensive Ministry of Investment on the investment front for the interim Budget that will streamline and facilitate investment opportunities within India and abroad for Indian investors. It has also recommended increased allocation for rural schemes like Pradhan Mantri Gram Sadak Yojana (PMGSY).
Budget Expectations: No big change likely in gross borrowings
The Centre may keep its gross market borrowing for 2024-25 close to this fiscal year's level, news agency Reuters reported citing two government sources, as it looks to rein in its borrowings that have more than doubled, mainly due to pandemic spending.
Budget Expectations 2024: Income tax benefits among experts' expectations
"There may be some concession to be offered to individual taxpayers under section 87A under which the overall tax exemption limit may be increased to Rs 8 lakh from now Rs 7 lakh, inclusive of rebates," says Narayan Jain, national president of the All India Federation of Tax Practitioners.
Union Budget 2024: Auto makers seek continued push to green mobility, infra
The Centre needs to continue with favourable policies to promote green mobility while also focussing on infrastructure development at a robust pace in the upcoming Budget, according to some firms in the automobile space.
"We expect capex on infrastructural projects to continue, aiding the automotive sector. The policy push for green mobility should remain a key focus for the government, encouraging faster adoption of electric vehicles," says Mercedes-Benz India MD and CEO Santosh Iyer.
Budget 2024: Assam tea industry seeks export promotion policy
The ailing tea industry in Assam needs proper promotion, particularly overseas, so that it can tap new markets, according to Nalin Khemani, Chairman of Bharatiya Chai Parishad.
"The commerce ministry must ensure that our exports improve; they promote our tea. There is an oversupply in our domestic market, and the export demand is tepid. If the government takes up with the Tea Board to introduce a tea promotion policy, we can tap new overseas markets," Khemani told news agency ANI.
Budget 2024: Nirmala Sitharaman & team giving finishing touches to Budget
The preparation of the Interim Budget 2024 has entered the last lap with Finance Minister Nirmala Sitharaman and her team of top Finance Ministry officials giving the final touches to the document as North Block has been put in lockdown mode to ensure complete secrecy after the 'halwa' ceremony.
The top members of the FM's team spearheading the budget-making exercise in the ministry include Sanjay Malhotra, the Revenue Secretary, Ajay Seth, Secretary of the Department of Economic Affairs, Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management, Vivek Joshi, Secretary of the Department of Financial Services, and V Anantha Nageswaran, the Chief Economic Advisor.
Budget 2024: Nirmala Sitharaman 2nd FM to present Budget 6 straight times
The Finance Minister will be setting a record when she rises to present her sixth Budget on February 1. The FM will surpass the records of her predecessors Manmohan Singh, Arun Jaitley, P Chidambaram, and Yashwant Sinha.
Budget Expectations 2024: What fund managers expect from FM
In December 2023, domestic mutual fund net assets under management (AUMs) crossed the Rs 50 lakh crore mark for the first time ever, data from industry body Association of Mutual Funds of India (AMFI) shows.
AMFI Chairman Navneet Munot has said that the mutual fund industry is geared up for the next growth milestone of Rs 100 lakh crore AUM and 10 crore investors.
Budget Expectations 2024: What startups and their investors want from FM
With only three days left before the presentation of the Union Budget in Parliament, entrepreneurs and investors from various industries have listed certain expectations from the Finance Minister, who is scheduled to present the last budget of the Modi 2.0 government on February 1.
Read more on what startups and their investors seek in Budget 2024
Budget Expectations 2024: 'Centre likely to stay on fiscal course-correction glide path'
While sops for the poor and the farmer have already been announced time and again, some sops for women and youth could be announced with minimal impact on the deficit, says Dhiraj Relli, MD and CEO, HDFC Securities.
The FY24 fiscal deficit target may just be met despite high revenue collections due to lower nominal growth, the CEO adds.