Budget 2024 Expectations LIVE: What experts, taxpayers, businesses, startups want from FMs Feb 1 Interim Budget
Budget 2024 Expectations Live updates, Interim Budget 2024 Expectations: With less than two days before Finance Minister Nirmala Sitharaman presents her sixth Union Budget in Parliament on February 1, expectations are rife, once again, that the annual event may spell good news for everyone. Catch all the latest updates on what the country wants from the Interim Budget 2024-25.
Union Budget 2024 Expectations Latest News, Budget Expectation: With only a day left before Finance Minister Nirmala Sitharaman reveals what’s in store for the economy in the form of the Union Budget for the financial year 2024-25, expectations are rife—once again—that the annual event may spell good news for everyone. Various economists, market experts, analysts and industry bodies released their wishlists for the annual event, wherein the finance minister is scheduled to present an interim Budget in Parliament on February 1, 2024. What do you expect from the finance minister's sixth Budget?
First things first, here are some important links to learn more about the big event, scheduled for February 1:
- FM kicks off Budget process with 'halwa' ceremony
- What is the significance of Union Budget? | Is Interim Budget different from full-year Budget?
- How is Union Budget prepared? Which factors are considered for formulating Budget?
- Tax sops, stamp duty reduction among top demands of the real estate sector
- What will become cheaper and what costlier this time around?
- Budget Glossary: Key terms to know | What is direct tax? | What is indirect tax?
- Budget Math Explained: Where does the Centre collect money from? | Where does it spend money?
- When did India present its first Budget?
- No big change likely in gross borrowings
- 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:
Latest Updates
Budget 2024 Expectations: "Predicting the realization of the full potential of domestic tourism, we look forward to a budgetary emphasis on infrastructure development", says Nishant Pitti, CEO & Co-founder, EaseMyTrip
"In expectation of the Union Budget 2024, we earnestly expect crucial reforms to strengthen and revitalize the tourism sector. We expect the Government to allow GST input on holiday businesses, a strategic reduction in income tax to catalyze growth in the country's tourism industry, and the streamlining of the TCS structure to a more favourable 5 per cent slab. Additionally, we expect a comprehensive overhaul of tax exemption policies related to Leave Travel Allowance (LTA), urging the Government to consider an annual allowance and the inclusive coverage of the entire tour package cost under LTA, surpassing the limitation to only flight expenses.
Predicting the realization of the full potential of domestic tourism, we look forward to a budgetary emphasis on infrastructure development, technology integration, and health safety measures across airports, aviation, roads, railways, and waterways. Recognizing the vast, underleveraged potential of India's waterways, which includes sea and river cruising opportunities, we strongly urge the Government to undertake necessary measures for the development of this sector", he said.
Budget 2024 Expectations: "In the last budget, the government focused on education that includes working while learning. This year, they are expected to focus even more on this," says Amit Mishra, CEO & Founder, iMocha
"India is facing two big challenges right now. First, they need to find jobs for the huge number of young people who are looking for work every year. Second, they need to make sure that people who already have jobs, especially in technology, stay skilled and prepared for the future. To solve these problems, they should focus on hiring people for their skills, not just their degrees or past job titles. Also, the whole country should work together to improve the skills of its workers. The government should spend money on training people in things like artificial intelligence (AI), machine learning (ML), and cybersecurity.
Since there's a big need for skilled people in these areas, government funding for training will help young people get better jobs. The government and private companies should work together to train lots of people in skills for the future, like coding, AI, robotics, and other tech skills. In the last budget, the government focused on education that includes working while learning. This year, they are expected to focus even more on this", he said.
Budget 2024 Expectations: Incentivizing investment in Fintech startups and R&D initiatives can further bolster the industry's dynamism, says Rohit Gajbhiye, MD & Founder, LEO1
"The Fintech industry in India is looking forward to the upcoming Union Budget with high expectations. The industry has already experienced regulatory reforms in the past year, and it anticipates that the upcoming budget will further promote financial inclusion. The enhancement of digital infrastructure and connectivity is essential to ensure the seamless operation of Fintech services across the country. The government should also facilitate a conducive regulatory environment that promotes innovation while safeguarding consumer interests. Additionally, incentivizing investment in Fintech startups and R&D initiatives can further bolster the industry's dynamism. The financial services industry also expects key announcements pertaining to the management of Non-Performing Assets (NPAs) and credit guarantee schemes for MSMEs. The industry is also expected to see a significant increase in focus and spending on artificial intelligence, machine learning, green finance, open banking and cybersecurity to better support the entire ecosystem," he said.
Budget 2024 Expectations: 'Urge a reduction in GST on lithium-ion battery packs and cells from 18 per cent to 5 per cent'
With EV sales doubling from 2022 to 2023, reaching 89,137 units, Atul Gupta, Co-founder & Director of e-Sprinto says the momentum in EV sector is clear. And to complement it, he has urged a reduction in GST on lithium-ion battery packs and cells from 18 per cent to 5 per cent. "Such a move will incentivize OEMs, fostering innovation and affordability in the sector. Additionally, the continuation of the FAME II Subsidy beyond its March 2024 expiration is crucial to sustain customer acceptance and support OEMs. Moreover, compulsory adoption of global ISO norms for battery swapping should be mandated by integrating voluntary IS standards into the Central Motor Vehicle Rules. This step will ensure quality assurance and uniformity in the EV industry, elevating standards for all stakeholders involved in the electric vehicle ecosystem. A forward-looking budget will not only propel the EV revolution but also solidify India’s position as a leader in sustainable mobility," he says.
Budget 2024 Expectations: Support to women entrepreneurs among expectations, say experts
Radhika Dalmia, chairperson of FICCI Ladies Organisation (Kolkata chapter), advocated tax relaxations for women entrepreneurs and more paid holidays for working mothers.
"Increasing the Rashtriya Swasthya Bima Yojana allowance and enhancing education benefits for girls are crucial steps. Strengthening financial inclusion and healthcare infrastructure along with prioritising education, particularly for girls, is vital for a more inclusive Bharat," she said.
Read the full report here
Budget 2024 Expectations: The insurance sector eagerly supports the prospect of an increased tax benefits limit to boost insurance penetration, says Santosh Agarwal, CBO, Life Insurance, Policybazaar.com
While a few insurance experts want a reduction of 18 per cent GST in insurance products; a few of them want a separate section for insurance premiums other than Section 80C of the Income Tax Act.
Here is what insurance industry experts expect from Finance Minister Nirmala Sitharaman
Budget 2024 Expectations: Jimmy Patel, MD & CEO, Quantum AMC, said that the government should make mutual fund investments more tax-efficient.
With the rise of the share market in the last year, mutual funds have been also performing well. Murthy Nagarajan, Head, Fixed Income, Tata Asset Management, said that the budget is expected to focus on investment and increasing the supply side of the economy. Jimmy Patel, MD & CEO, Quantum AMC, said that the government should make mutual fund investment more tax-efficient.
Here's what mutual fund managers expect from the Finance Minister
Budget 2024 Expectations LIVE: What various sectors seek in last Budget of Modi 2.0?
Read more on what sectors seek in FM's Feb 1 Budget
Budget 2024 Expectations LIVE: ‘Boosting export benefits can help global capability centres thrive’
Boosting export benefits, like the ones under section 10AA of the IT Act (which is now scrapped), can help global capability centres (GCCs) in India grow and thrive, according to Lalit Ahuja, CEO of ANSR. “This will keep India a top place for global business,” says Ahuja.
“The reduced tax rate of 15 per cent currently enjoyed by newly established domestic manufacturing companies should be extended to newly formed GCCs. This aims to encourage the inception and smooth operations of these centers, fostering their growth and contributing to economic development,” he adds.
Budget 2024 Expectations: ‘Online gaming industry can be a cornerstone of Digital India’
Roland Landers, CEO of All India Gaming Federation, believes that there is much for the country’s gaming sector to anticipate given the highly positive outlook for the space.
“We envision this budget to be a symphony of support, by aligning regulatory clarity with fiscal incentives and strengthening legal infrastructure to encourage growth. With the right notes, the online gaming industry can be a cornerstone of Digital India and serving as a catalyst for the governments’ vision of Amrit Kaal–a five trillion-dollar economy,” Landers adds.
Budget 2024 Expectations: FICCI outlines 10 focus areas
Industry body FICCI has called for an extension to the concessional tax regime for manufacturing operations for at least five years.
“Many global investors are today considering investing in India and extending such concessional tax regime for five years will ensure stability and certainty, thus bolstering the confidence of investors to set up manufacturing units in India,” the industry body listed among its 10 recommendations to the government ahead of the mega event.
Budget 2024 Expectations: FICCI urges Centre to maintain focus on investments
Industry body FICCI has outlined its expectations from the government in the upcoming Budget, underlining a host of critical areas for economic development.
After the government's capex outlay saw an increase of 37.4 percent to Rs 10 lakh crore in the last Budget, FICCI has emphasised the need for a continued thrust on public capex considering global developments and challenges.
It has also called for establishing a national taxonomy for green finance to enhance transparency in sustainable financing.
Budget Expectations 2024: What insurers want to see in FM's bahi khata
First things first, the penetration of insurance in India remains quite low. According to the country's insurance regulator, the Insurance Regulatory and Development Authority of India (IRDAI), the non-life insurance penetration in India for FY23 was recorded at one per cent. As the date of the interim budget comes closer, insurance industry experts have high expectations of Finance Minister Nirmala Sitharaman, who is set to present the budget on February 1.
Santosh Agarwal, Chief Business Officer-Life Insurance at Policybazaar.com, expects the February 1 Budget to include a reconsideration of taxes on the entire insurance category to achieve a fair balance.
Read more on what the insurance space seeks in upcoming Budget
Budget 2024 Expectations: Jewellers seek a gold import duty cut
A higher gold import duty is detrimental to the growth of the organised jewelry retail sector, as it indirectly promotes gold smuggling and unauthorized grey market transactions, according to MP Ahammed, Chairman, Malabar Gold & Diamonds.
"The Budget also needs to propose measures to control unaccounted business practices by implementing effective tax compliance and transparency mechanisms," Ahammed adds.
Read more on what the jewellery industry wants from Budget 2024
Budget 2024 Expectations: Gold loan NBFCs can play vital role in fulfilling small borrowers' needs, says Muthoot Finance's George Alexander Muthoot
Muthoot Finance MD George Alexander Muthoot says that granting a priority sector status to gold loans and allowing a gold-linked credit line via UPI can go a long way towards helping households and small business owners meet their financing needs and monetise their gold jewellery lying idle.
"We believe giving priority sector status to eligible gold loans will benefit the bottom of the pyramid and enhance financial inclusion. Herein, gold loan NBFCs can play an important role in fulfilling the needs of small borrowers, self-employed, and microbusiness owners and helping address their financial or working capital needs," Muthoot adds.
Budget 2024 Expectations: Centre to stay on fiscal course-correction glide path, says HDFC Securities CEO
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, Relli adds.
Budget 2024 Expectations: What startups and their investors seek in February 1 Interim Budget
With only a few hours left before the finance minister presents the Interim Budget in Parliament, entrepreneurs and investors from various industries have revealed their wishlists.
Read more on what startups and their investors seek in Budget 2024
Budget 2024 Expectations: What the fintech industry wants from FM
From education to infrastructure to taxation, all sectors and industry experts are looking forward to a move that will support growth in their respective segments.
Read more on what the fintech industry seeks in Budget 2024-25
Budget 2024 Expectations: What fund managers expect from Finance Minister
In December, domestic mutual funds' net AUMs crossed the Rs 50 lakh crore mark for the first time ever, according to data from industry body Association of Mutual Funds of India (AMFI).
The mutual fund industry is geared up for the next growth milestone of Rs 100 lakh crore AUM and 10 crore investors, AMFI Chairman Navneet Munot said.
Read more on what the mutual fund industry seeks in Budget 2024-25
Budget 2024 Expectations: Income tax benefits among experts' expectations
Narayan Jain, national president of the All India Federation of Tax Practitioners, is of the view that there may be some concession to be offered to individual taxpayers, in the upcoming Budget, under Section 87A of the Income Tax Act.
The overall tax exemption limit may be increased to Rs 8 lakh from now Rs 7 lakh, inclusive of rebates, Jain adds.
Read more on what experts seek from FM's Interim Budget 2024-25
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," says Badhan.
Budget 2024 Expectations: Steering rural growth & investment likely among key themes, says economist
Bank of Baroda economist Sonal Badhan believes that given the weaker-than-expected monsoon in FY24 and muted rabi sowing, the government will aim to give rural growth a boost through its Budget 2024-25. Its 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 Centre 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 2024 Expectations: BoB estimates incremental increase of Rs 1.5-2 lakh crore 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 2024 Expectations: What do you expect from the February 1 Budget?
As the country awaits Finance Minister Nirmala Sitharaman to present the Budget for the coming financial year, 2024-25, in Parliament on February 1, expectations are rife—once again—that the annual event may spell good news for everyone.
Budget 2024 Expectations: BoB pegs Budget size at Rs 49-50 lakh crore
Bank of Baroda economist Sonal Badhan says the size of the upcoming Budget is estimated to be in the range of Rs 49-50 lakh crore.
Budget 2024 Expectations: BoB economist says capex focus to remain in upcoming Budget
According to Bank of Baroda's Sonal Badhan, the government is likely to continue to prioritise capital expenditure in order to push investments and even improve the quality of such 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," according to the economist.
"We estimate a jump of around 20 per cent (Rs 10.1 lakh crore estimated in FY24) in capex to Rs 11.5-12 lakh crore in FY25," Badhan adds.
Budget 2024 Expectations: Welcome to Zeebiz.com's blog on the Interim Budget 2024-25, scheduled to be presented in Parliament on February 1
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