Budget 2024 Expectations: From infra, defence to farming, healthcare, what you can expect in upcoming Budget FY25

Budget Expectations: After five years, India once again awaits the presentation of a full-year Budget in the second half of the year, following a Vote on Account in February. Expectations are high - once again - that the upcoming Budget, scheduled to be presented from 11 am onwards on July 23, 2024, will introduce several changes aimed at promoting growth and prosperity for both the economy and the common man. Many experts and analysts have laid out their wishlists in the run-up to the much-anticipated event. 

Here is a list of some of the major expectations in key sectors such as infrastructure, railway, automobiles, healthcare, defence and telecommunications, according to Zee Business research:  

Budget Expectations | Infrastructure 

• Government to remain focused on infrastructure
• Interim Budget 2024 set aside Rs 11.1 lakh crore capex for infra
• Road sector & NHAI got Rs 4.5 lakh crore 
• Urban development & smart cities got Rs 88,000 crore
• National Infrastructure Pipeline & Gati Shakti to remain at the centrestage
• Increased focus on central initiative to provide tap water supply to every rural household
• Capital outlay for Clean Indian mission has been increased 28 per cent

Budget Expectations | Power 

• Strong focus to continue on the power sector; allocation likely to be increased
• Interim Budget 2024 allocated Rs 20,500 crore to sector
• Increased focus on solar energy under PM Suryoday Scheme 
• Plan to take domestic renewable energy capacity to 500 GW by 2030 
• Steps to promote battery storage & wind energy
• Plan to enhance private sector participation through PPP model
• Interim Budget allocated Rs 600 crore to promote green hydrogen

Budget Expectations | Railway

• Rs 2.5 lakh crore expenditure earmarked for railway
• Emphasis on metro trains & high speed rail projects
• 40,000 coaches to be transformed into Vande Bharat AC standards 
• 2,500 kilometres of railway tracks to be fitted with Kavach systems in FY25 
• 5,000 LM railway tracks to get Kavach systems installed by FY26 

Budget Expectations | Agriculture - fertilisers & chemicals 

• Hope of PLI & tax incentives to promote chemical manufacturing
• Expectations of schemes aimed at promoting R&D in the sector
• Nano urea likely to be in focus (Interim Budget mentioned Rs 1.64 lakh crore fertiliser subsidy)
• Increased PM Kisan Samman Nidhi allocation to benefit farmers

Budget Expectations | FMCG and other consumer products

• Tax sops likely to promote consumption
• Continuous infra spending & capex to boost personal income as well as consumption
• Skill upgradation, job creation & MSME to remain in focus
• Increased MGNREGA allocation to boost farmers' incomes
• No change likely in cigarette taxes
• Hope of increased tax benefit under Section 80C of Income Tax Act 

Budget Expectations | Real estate

• Hope that sector may be given industry status 
• PMAY & affordable housing roadmap on the cards
• Steps to promote Digital Infra; focus to continue on data centres & smart cities
• Interest subvention scheme for Middle class likely to be announced
• Home loan I-T deduction limit may be enhanced
• Set off limit for let-out property may be increased beyond Rs 2 lakh
• Hope of tax incentives on eco-friendly construction material
• Special Window for Affordable and Mid-income Housing Fund (SWAMIH) Scheme to get additional allocations
• A Credit-Linked Subsidy Scheme (CLSS) on the cards under PMAY to enhance household affordability 
• Affordable housing scheme threshold may be increased

Budget Expectations | Logistics

• Steps to promote the logistics sector to continue to be in focus
• Multi modal connectivity being increased under Gati Shakti Plan
• Focus on improving rail & shipping connectivity along with road connectivity
• Plan to establish 23 inland waterway corridors by 2030   
• Net corridors to enhance connectivity for energy, mineral & cement sectors

Budget Expectations | Automobiles

• FAME-III scheme expected to be announced with an outlay of Rs 10,000 crore
• Incentives likely to promtoe hybrid cars (similar to those available for EVs)
• Policy likely for steps to promote EV charging infra
• Schemes to promote rural consumption 
• Hope that GST may be reduced to 5 per cent on advanced chemistry cells
• Several manufacturers along with industry body SIAM have demanded more incentives for scrapping of old vehicles 

Budget Expectations | Pharmaceuticals & healthcare

• Expectations of a higher allocation to promote R&D and innovation
• PLI scheme in healthcare may be expanded
• PLI may be increased to promote domestic production of pharmaceuticals & medical devices
• A higher allocation on the cards for Ayushman Bharat Pradhan Mantri Jan Arogya Scheme 
• Addition of more serious diseases under the coverage of Ayushman Bharat Pradhan Mantri Jan Arogya Scheme 

Budget Expectations | Telecommunications

• Demand to cancel the rule of deducting 5 per cent of AGR for the Universal Service Obligation Fund (USOF) till the existing fund is exhausted   
• Hope that duties may be removed on 4G/5G telecom gear   
• Hope that license fees may be reduced to 1 per cent from 3 per cent  

Budget Expectations | Child rights 

• Demand to increase child education, healthcare, and protection services' funding
• To increase allocations for health and nutrition programs
• Focus on importance of initiatives like the Mission Vatsalya and Mission Shakti

Budget Expectations | Food processing

• Setting up of food processing units
• Taking Indian brands to global markets
• Clearing various misconceptions regarding processed foods

Catch all the latest updates on Budget 2024 here