Budget 2024 Expectations Live: What to Expect from Budget 2024?
Union Budget 2024 Expectations Live Updates: FM Sitharaman to Table Economic Survey in Parliament Today.
FILE PHOTO: India's Finance Minister Nirmala Sitharaman holds up a folder with the Government of India's logo as she leaves her office to present the interim federal budget in parliament, ahead of the nation's general election, in New Delhi, India, February 1, 2024.
Union Budget 2024 Expectations Live Updates: Pre-budget expectations from various sectors pour in. Find here all updates on Budget-related news.
PLI in Agrochemicals, Cut in GST on Farm Inputs Among Major Expectations from Budget.
Businessline compiled some expectations from key players in the farm sector.
Tamil Nadu CM Submits State’s Wish List for Union Budget; Seeks Release of Funds for Chennai Metro Rail Project.
Tamil Nadu Chief Minister MK Stalin on Sunday submitted to the Centre a wish list of various rail and road projects for the State to be included in the Union Budget 2024-25, which will be presented in the Parliament on Tuesday.
Naveen Kulkarni, Chief Investment Officer at Axis Securities PMS, Outlining His Macro-Economic Outlook for the Upcoming 2024 Budget
“We believe that the upcoming budget will likely support the vision of “Viksit Bharat” by 2047, following a transformation similar to the one seen in the last decade. With the formation of the NDA 3.0 government, there are increasing expectations from the market for some allocation to address rural challenges and a potential cutback on capital expenditure.
The budget is expected to strike a balance between capital expenditure and addressing rural challenges. Moreover, a higher-than-expected RBI dividend has provided some flexibility to progress further with welfare schemes. We anticipate that the government’s priority will continue to be achieving and maintaining macro stability by following a path of fiscal consolidation while balancing growth and stability. We expect the fiscal deficit for FY25 to be kept below 5.1%, with a goal of reaching 4.5% by FY26. Currently, the market is closely monitoring developments related to the capital gains tax. Any deviation from market expectations could lead to some short-term unfavourable reaction, although the likelihood of this happening seems low.”
What Could Help India Expand Its Global Defence Footprint?
The Budget expectation this time from the private sector is about how the mandated 70% of total defence expenses via domestic procurement can be segregated between the public and private sectors in India, says Ashish Rajvanshi, CEO of Adani Defence & Aerospace, in conversation with Businessline’s Dalip Singh.
Kaushik Das, Entrepreneur and CEO of AAO NXT, on the Union Budget Expectations for the Media & Entertainment Industry
“The Indian media and entertainment (M&E) industry is flourishing, bolstered by the surge in OTT platform usage, governmental support for digital infrastructure, and the ever-growing enthusiasm for cinema. Despite numerous tax reforms introduced over the years, several critical issues remain that need to be addressed in the upcoming Union Budget.
One major challenge involves the TDS (Tax Deducted at Source) system. Currently, taxpayers face significant difficulties in reconciling TDS with their income due to timing differences. To alleviate this burden, it would be beneficial if the Income-tax Act allowed for TDS credit as reflected in Form 26AS for the corresponding year.
Advertising agencies also face hurdles with the existing TDS framework, which impacts their cash flow due to TDS being applied to the gross billing amount. Lowering the TDS rate on payments from advertisers to these agencies would help ease this financial strain.
Additionally, payments to foreign satellites and data centers are presently classified as royalty or fees for technical services, making them subject to withholding tax.
Clarifying that these payments are not taxable in this manner would greatly assist M&E companies utilizing these services.
Moreover, the rules for carrying forward losses during company amalgamations should be expanded to include M&E sector companies, fostering growth and consolidation within the industry.
On the GST front, implementing the proposed changes from the recent GST Council meeting, such as the amnesty scheme for waiving interest and penalties and reducing pre-deposits for filing appeals, would significantly reduce ongoing litigations and create a more supportive business environment.”
First Union Budget in the Third Term of NDA Government Will Lay Foundation of ‘Viksit Bharat’ and Prepare the Ground for Converting Guarantees, Prime Minister Narendra Modi Said on Monday.
What’s in Store for Healthcare?
Listen to this State of the Economy Podcast, Businessline’s PT Jyothi Datta talks to Shuchi Ray, Partner at Deloitte India, on the current state of healthcare in India, and the sector’s expectations from the upcoming Budget.
Medical Devices Platform Seeks Measures in Budget to Reduce Reliance on Imports
Association of Indian Medical Device Industry (AIMED) wishlist also hoped the upcoming Budget ’24 would announce income tax benefits tailored to expenditure on capacity expansion and research and development investments by medical device companies.
Budget 2024 Expectations: FY25 Union Budget to Set the Economic Tone, Says Rajeev Yadav, Deputy CEO, AU Small Finance Bank.
The government is now set to present a revised Union Budget for FY25, which will supersede the interim budget presented earlier in Feb-24. The newly appointed government will be expected to continue with policy focus on prudent fiscal management and fiscal glide path to achieve fiscal deficit of 4.5% by FY 26. This augurs well for overall macro-stability for transitioning towards the goal of Viksit Bharat by 2047.
I believe the Union Government budget should focus on five key priorities for the upcoming Union Budget:
Commitment towards fiscal discipline: Needs to get reiterated and will boost India’s fiscal image at a time of global bond inclusion. A sovereign rating upgrade over the next two years will lower the cost of borrowing for all economic stakeholders in the country.
Scaling up of financial intermediation: There is an urgent need to accelerate deposit mobilization by the banking system. The FY25 Union Budget (along with support from the RBI) could look at providing a level playing field to bank deposits vis-à-vis other competing instruments by incentivizing deposit mobilization through lowering tax incidence on FDs.
Technological infrastructure in banking: Indian banks have been spending 6-8% of total operating expenditure on technology, lower than the global average of 10-12%. With the government’s focus on digitization and financialization of the economy and boosting cyber security, the Indian banking system needs to meaningfully scale up the technological infrastructure to be future-ready. The FY25 Union Budget could offer some tax rebates for scaling up technological infrastructure.
Job creation: Needs to be a top priority for the policymakers to help maximize India’s demographic dividend and sustain GDP growth close to 8%. The Union Budget needs to be multi-dimensional prioritising filling of government jobs, existing PLI Scheme to reinvigorate labour-intensive sectors (esp. involving the SMEs) like textiles, leather, tourism, etc., doubling increasing allocation towards education from close to 3% currently of GDP to around 6%.
Supporting demand-side economic activity: Through private consumption will not just raise demand at the bottom of the pyramid, but it would also help the fiscal revenue by boosting indirect tax collections. The Budget could consider increasing targeted allocation for affordable housing under the PMAY Scheme while also providing tax incentives to home loan borrowers for developers. Scaling up of agriculture infrastructure and encouraging ‘farm tourism’ will also provide a strong impetus to rural incomes.
The Union Budget needs to set the tone for economic momentum for the next five years. This will involve a fine balancing between preserving fiscal discipline, boosting inclusive consumption, and incentivizing financial savings, private investment, and exports.
Revamping MSP to Address Challenges and Explore Alternatives
With the issue of the minimum support price (MSP) once again taking the front burner, perhaps the time has come for the government to consider a revamp in the present, and look out for future alternatives for sustainable agriculture growth in the country, especially as the 2024 budget comes into action. Rajesh Aggarwal, Managing Director, Insecticides (India), writes.
ITR Analysis: Short-Term Capital Gains Halve in AY24 IT Returns; Experts Urge Comprehensive Capital Gains Tax Overhaul
Experts believe these trends clearly highlight that people are holding their investments for longer durations while keeping old age security in mind. They expect reform in capital gain calculation norm in the budget.
Will Government Capex Slow Down, Consumers Get a Boost, and Investors, Some Tax Concessions?
From ₹3.3 lakh crore in FY19, capex allocation compounded at 27 per cent CAGR to the current ₹11 lakh crore allocation. For comparison, the allocation grew at 9 per cent CAGR in the FY14-19 period. The last five years clearly indicate a government spending push. This was aimed at dragging the economy out of Covid blues and putting it on a growth path.
A Quick Look at the Expectations from a Personal Tax Perspective
The key changes in the previous budget included a substantial enhancement in rebate under section 87A of the Income-tax Act to Rs 7 lakh. It also rationalised the tax structure in the New Tax Regime by reducing the number of tax slabs to five and increasing the basic exemption limit to Rs 3 lakh. The government also increased the threshold limit for presumptive taxation schemes under sections 44AD and 44ADA of the Income-tax Act to Rs 3 crore and Rs 75 lakh respectively, subject to certain conditions.
What Retail Investors Expect in Union Budget 2024
In the last few budgets, there have been some changes that have directly or indirectly impacted retail investors. This time, too, they have high expectations from the Union Budget 2024. Here are some demands of retail investors:
Change in the Capital Gains Tax Structure: Investors are looking forward to the finance ministry taking steps to address the long-pending issue of capital gains taxation. They expect the Union Budget 2024 to bring about much-needed clarity and uniformity in this regard.
Tax-Free Bonds: Retail investors are looking forward to the re-introduction of tax-free bonds. This could provide a secure investment avenue for risk-averse investors, while also helping the government in meeting its funding requirements.
Enhancing Section 80C Limit: Retail investors expect an increase in the limit under Section 80C of the Income Tax Act, which currently stands at Rs 1.5 lakh. An increase in the limit would help individuals save more and, in turn, encourage investments in various tax-saving instruments.
Increased Focus on Financial Literacy: With an increasing number of retail investors entering the stock market, there is a need for greater focus on financial literacy. Investors hope the Union Budget 2024 will allocate funds for initiatives aimed at improving financial literacy among the masses.
Budget 2024 Expectations: Indian Hospitality Sector Pins Hope on Budget
Vineet Verma, Director & CEO of Brigade Hospitality, says, “The Indian hospitality sector is on a fast recovery post-pandemic, with a rise in domestic travel and tourism. However, there are still some challenges that the industry faces, which we hope the Union Budget 2024 will address.
Infrastructure Status: The hospitality sector has been long demanding infrastructure status. This will enable the sector to access funds at lower interest rates, which in turn will help in the expansion and modernization of hotels across the country.
Rationalization of GST: The current GST rate on hotel rooms is 18%, which is relatively high compared to other countries. A reduction in the GST rate will make Indian hotels more competitive in the global market.
Single-Window Clearance: The hospitality sector requires multiple licenses and approvals from various authorities. A single-window clearance system will streamline the process and reduce the time and cost involved in setting up and operating hotels.
Support for Small and Mid-Sized Hotels: Smaller hotels, especially in tier 2 and tier 3 cities, require financial support for upgradation and marketing. The government should consider providing subsidies or low-interest loans to these hotels.
Promotion of Medical and Wellness Tourism: India has the potential to become a global hub for medical and wellness tourism. The government should promote this sector by providing incentives to hospitals, wellness centers, and hotels catering to medical tourists.
Automobile Sector’s Budget Wishlist
With the Budget 2024 around the corner, the Indian automobile sector has high expectations from the Finance Minister. Here are some key expectations:
Reduction in GST Rates: The automobile industry is looking forward to a reduction in GST rates from the current 28% to 18%. This will make vehicles more affordable for consumers and boost sales.
Incentives for Electric Vehicles (EVs): The government should provide more incentives for the production and purchase of EVs. This will help in reducing pollution and promote sustainable transportation.
Scrappage Policy: The industry expects the implementation of a comprehensive scrappage policy that will encourage the phasing out of old and polluting vehicles. This will also create demand for new vehicles.
R&D Support: The government should provide financial support for research and development in the automotive sector. This will help in the development of new and innovative technologies.
Infrastructure Development: The automobile sector needs better infrastructure in terms of roads, charging stations for EVs, and logistics. The government should allocate funds for the development of this infrastructure.
Budget 2024 Expectations: Real Estate Sector Hopes for Incentives and Reforms
The real estate sector is one of the key contributors to India’s GDP and has high expectations from the Union Budget 2024. Here are some key expectations:
Increase in Tax Deduction Limit for Housing Loans: The sector expects an increase in the tax deduction limit for housing loans from the current Rs 2 lakh to Rs 3 lakh. This will encourage more people to invest in real estate.
Single-Window Clearance System: The real estate sector requires multiple approvals from various authorities. A single-window clearance system will reduce the time and cost involved in obtaining these approvals.
Infrastructure Status: The sector has been demanding infrastructure status for a long time. This will enable developers to access funds at lower interest rates, which will help in the development of affordable housing.
Incentives for Affordable Housing: The government should provide more incentives for the development of affordable housing. This will help in meeting the housing needs of the growing population.
Reduction in GST Rates: The sector expects a reduction in GST rates for under-construction properties. This will make these properties more affordable for buyers.
Union Budget 2024 Expectations: What the MSME Sector Expects
The MSME sector is a crucial part of the Indian economy and has high expectations from the Union Budget 2024. Here are some key expectations:
Easier Access to Credit: The MSME sector faces challenges in accessing credit. The government should provide more financial support and ease the process of obtaining loans for MSMEs.
Reduction in GST Rates: The sector expects a reduction in GST rates for MSMEs. This will help in reducing the cost of goods and services and boost the sector’s growth.
Incentives for Export: The government should provide more incentives for MSMEs to export their products. This will help in increasing the sector’s contribution to the country’s exports.
Skill Development Programs: The government should allocate funds for skill development programs for the MSME sector. This will help in improving the productivity and competitiveness of MSMEs.
Simplification of Compliance: The sector expects simplification of compliance procedures. This will reduce the time and cost involved in adhering to regulatory requirements.
Union Budget 2024: Expectations from the Education Sector
The education sector has high expectations from the Union Budget 2024. Here are some key expectations:
Increased Allocation for Education: The sector expects an increase in the budget allocation for education. This will help in improving the quality of education and infrastructure in schools and colleges.
Focus on Digital Education: The government should provide more support for digital education. This will help in bridging the digital divide and provide quality education to students in remote areas.
Scholarships and Financial Support: The sector expects more scholarships and financial support for students. This will help in making education more accessible to students from economically weaker sections.
Skill Development Programs: The government should allocate funds for skill development programs. This will help in improving the employability of students and meet the industry’s demand for skilled workers.
Research and Development: The sector expects more financial support for research and development. This will help in promoting innovation and improving the quality of education.
Union Budget 2024 Expectations: What the Agriculture Sector Hopes For
The agriculture sector has high expectations from the Union Budget 2024. Here are some key expectations:
Increased Allocation for Agriculture: The sector expects an increase in the budget allocation for agriculture. This will help in improving the infrastructure and support for farmers.
Incentives for Organic Farming: The government should provide more incentives for organic farming. This will help in promoting sustainable agriculture and improving the income of farmers.
Support for Small Farmers: The sector expects more financial support for small farmers. This will help in improving their income and reducing their dependence on loans.
Research and Development: The government should allocate funds for research and development in agriculture. This will help in improving the productivity and sustainability of agriculture.
Market Access: The sector expects more support for accessing markets. This will help in improving the income of farmers and reducing their dependence on middlemen.
Union Budget 2024: Expectations from the Banking Sector
The banking sector has high expectations from the Union Budget 2024. Here are some key expectations:
Recapitalization of Banks: The sector expects more financial support for the recapitalization of banks. This will help in improving their financial health and ability to lend.
Incentives for Digital Banking: The government should provide more incentives for digital banking. This will help in promoting the adoption of digital banking services and improving financial inclusion.
Support for NBFCs: The sector expects more financial support for non-banking financial companies (NBFCs). This will help in improving their ability to lend and support the growth of the economy.
Simplification of Compliance: The sector expects simplification of compliance procedures. This will reduce the time and cost involved in adhering to regulatory requirements.
Incentives for Green Banking: The government should provide more incentives for green banking. This will help in promoting sustainable finance and reducing the environmental impact of banking activities.
Union Budget 2024: Expectations from the IT Sector
The IT sector has high expectations from the Union Budget 2024. Here are some key expectations:
Incentives for Research and Development: The sector expects more financial support for research and development. This will help in promoting innovation and improving the competitiveness of the IT sector.
Support for Startups: The government should provide more support for startups. This will help in promoting entrepreneurship and the growth of the IT sector.
Simplification of Compliance: The sector expects simplification of compliance procedures. This will reduce the time and cost involved in adhering to regulatory requirements.
Incentives for Digital Transformation: The government should provide more incentives for digital transformation. This will help in improving the efficiency and competitiveness of the IT sector.
Support for Skill Development: The sector expects more financial support for skill development programs. This will help in improving the employability of workers and meet the industry’s demand for skilled workers.
Union Budget 2024: Expectations from the Healthcare Sector
The healthcare sector has high expectations from the Union Budget 2024. Here are some key expectations:
Increased Allocation for Healthcare: The sector expects an increase in the budget allocation for healthcare. This will help in improving the infrastructure and quality of healthcare services.
Support for Medical Research: The government should provide more financial support for medical research. This will help in promoting innovation and improving the quality of healthcare.
Incentives for Telemedicine: The sector expects more incentives for telemedicine. This will help in improving access to healthcare services, especially in remote areas.
Support for Healthcare Startups: The government should provide more support for healthcare startups. This will help in promoting entrepreneurship and innovation in the healthcare sector.
Increased Focus on Preventive Healthcare: The sector expects more focus on preventive healthcare. This will help in reducing the burden on the healthcare system and improving the overall health of the population.
Union Budget 2024: Expectations from the FMCG Sector
The fast-moving consumer goods (FMCG) sector has high expectations from the Union Budget 2024. Here are some key expectations:
Reduction in GST Rates: The sector expects a reduction in GST rates for FMCG products. This will help in reducing the cost of goods and boosting consumer demand.
Incentives for Rural Development: The government should provide more incentives for rural development. This will help in improving the income and purchasing power of rural consumers.
Support for Research and Development: The sector expects more financial support for research and development. This will help in promoting innovation and improving the competitiveness of the FMCG sector.
Incentives for Sustainable Practices: The government should provide more incentives for sustainable practices. This will help in promoting environmental sustainability and improving the reputation of the FMCG sector.
Simplification of Compliance: The sector expects simplification of compliance procedures. This will reduce the time and cost involved in adhering to regulatory requirements.
Union Budget 2024: Expectations from the Tourism Sector
The tourism sector has high expectations from the Union Budget 2024. Here are some key expectations:
Increased Allocation for Tourism Infrastructure: The sector expects an increase in the budget allocation for tourism infrastructure. This will help in improving the quality of tourist facilities and attracting more tourists.
Incentives for Sustainable Tourism: The government should provide more incentives for sustainable tourism practices. This will help in promoting environmental sustainability and improving the reputation of the tourism sector.
Support for Medical and Wellness Tourism: The sector expects more support for medical and wellness tourism. This will help in promoting India as a global hub for medical and wellness tourism.
Incentives for Adventure Tourism: The government should provide more incentives for adventure tourism. This will help in promoting adventure tourism and attracting more tourists.
Simplification of Compliance: The sector expects simplification of compliance procedures. This will reduce the time and cost involved in adhering to regulatory requirements.
Comments
Post a Comment