Nirmala Sitharaman Budget 2024 Live Updates: With the Narendra Modi-led NDA government sworn in, and after the 53rd GST Council already having announced several recommendations post its meeting on June 22, Finance Minster Nirmala Sitharaman is expected to table the Union Budget for FY25 on July 23 or 24, sources told FinancialExpress.com. The Budget will be presented with the commencement of the Monsoon Session of the Parliament. The Monsoon Session is set to begin on July 22, per sources. The session is likely to continue until August 9. The first session of the 18th Lok Sabha, which commenced today, will go on till July 4 and will close sine die as this is a special session.
Earlier on June 22, the 53rd GST Council meeting, chaired by the finance minister, deliberated on various proposals to streamline GST applicability across goods and services, and several recommendations were made to refine tax rates and service exemptions under the GST regime. FM Sitharaman emphasized the Centre’s support to states with timely tax devolution and GST compensation arrears to boost growth. She also highlighted the government’s support through timely tax devolution, Finance Commission grants, and GST compensation arrears to stimulate growth, according to an official statement.
In the history of Indian Budget speeches, Finance Minister Nirmala Sitharaman holds the record for delivering the longest one.
Tata Motors, today, expressed its expectation for policy continuity in the forthcoming Union Budget. The company emphasised the need for more players in the charging infrastructure sector to accelerate the adoption of electric mobility in the country. The new NDA government at the Centre is likely to present the Union Budget next month.
Tax and consultancy firm EY has suggested that the government should either double the standard deduction to Rs 1 lakh under the new concessional tax regime or raise the basic exemption limit to Rs 3.5 lakh in the upcoming Budget.
The 52nd GST Council meeting was held on October 7, 2023 and was presided over by Finance Minister Nirmala Sitharaman. The meeting was attended by Finance MoS Shri Pankaj Chaudhary, the Revenue Secretary, the Chairman of CBIC, Member CM, Member GST, Member TP, and senior officers from the Union Government and States.
The latest data from the Ministry of Finance shows that Goods & Services Tax (GST) collections in May 2024 reached Rs 1.73 lakh crore, marking a 10 percent increase compared to the same period last year. In April, GST collections surpassed the Rs 2 lakh crore mark, with a gross collection of Rs 2.10 lakh crore, up 12.4 percent year-on-year.
Presently, taxpayers can choose between the old regime, which offers various exemptions and deductions, and the new concessional regime, providing lower rates and Rs 50,000 standard deduction but no exemptions!
The Modi Government should double standard deduction under the new concessional tax regime to Rs 1 lakh or increase the basic exemption limit to Rs 3.5 lakh in the Union Budget 2024-2025, said tax and consultancy firm EY.
TT Krishnamachari succeeded CD Deshmukh as finance minister and was known for his diligent work and focus on taxation. He introduced wealth tax and expenditure tax in 1957. In 1964-65, Krishnamachari launched India‘s first voluntary disclosure scheme for concealed income. Additionally, Jawaharlal Nehru, India’s first prime minister, briefly served as the Union Finance Minister in 1958-59 and was the first prime minister to present the national budget.
In the budget of 1950-53, the then government had formally announced the initiation of the Planning Commission. Headed by the Prime Minister, this primary body was entrusted with the responsibility of directing a well-defined program for the country’s development.
TT Krishnamachari, following CD Deshmukh as finance minister, in 1957, introduced two new taxes: a wealth tax and an expenditure tax, urging taxpayers to demonstrate patriotism in paying these levies. During his tenure in 1964-65, Krishnamachari pioneered India‘s first voluntary disclosure of concealed income schemes.
Until 1955, the Union Budget was exclusively printed in English. However, starting with the Budget of 1955-56, because of an initiative led by the then Finance Minister CD Deshmukh, it began to be presented in both English and Hindi.
To ensure price stability and curb hoarding, the government imposed stock holding limits on wheat for retailers, wholesalers, processors and big-chain retailers till March 31, 2025. According to Sanjeev Chopra, secretary, department of food and public distribution, there is no shortage of wheat in the country. The move to impose stock holding limits on the commodity would help improve supplies. Chopra ruled out lifting the export ban on wheat imposed in May 2022. Chopra stated that the stock limit has been imposed in view of recent reports that the prices of essential commodities are increasing including wheat and the move to impose stock holding limit aimed at reducing hoarding.
Finance Minister Nirmala Sitharaman chaired a crucial pre-budget conference at North Block in New Delhi on 25th June, 2024, attended by the Federation of Hotel and Restaurant Associations of India (FHRAI). The association proposed essential regulatory changes to support industry growth, emphasising strategic reforms to address current challenges and unlock growth opportunities aligned with sector targets.
One of the key requests put forward by the hospitality federation to the Finance Ministry was to grant Infrastructure Status for hotels across all categories and convention centres built at a project cost of Rs 10 crore and above to give fillip to the budget segment in the hotel industry. GST rationalisation was another significant concern highlighted. The Federation requested for a 12% GST rate across all hotels and also for delinking of restaurant tariffs from room tariffs.
Confederation of Indian Industry (CII) president Sanjiv Puri said that India’s economy is expected to grow at a robust 8% in FY25. He cited the second generation reforms that the Narendra Modi-led government will undertake, good monsoon prospects, and the improved external situation, for the growth projection. “A lot of policy interventions in the past have put the economy on a much stronger wicket,” Puri said. CII’s growth projection for this fiscal is way higher than the Reserve Bank’s forecast of 7.2%. In FY24, India’s economy had expanded by 8.2%.
India’s merchandise exports grew 9.1% on-year in May to $ 38.13 billion, but a sharp 28% rise in imports of petroleum crude and products pushed imports growth to 7.7%, precipitating a trade deficit of $23.78 billion, official data showed.
The rise in outward shipments of goods in May was the highest since February (11.9%), and was much above the subdued trend seen most of the recent months, but it was also due to a low base (-10.4%).
The Centre’s advance direct tax receipts for the first quarter of the current financial year from companies, LLPs and individuals rose by 27% on-year to Rs 1.49 trillion as of June 16, sources said. Given that the advance tax had increased by 14% in Q1FY24, the sharp increase in Q1FY25 indicates continued traction in the economic activity. Advance taxpayers have to pay 15% of their income tax liability by June 15 of each year.
In a rare occurrence, the Lok Sabha will witness an election for the Speaker's post, after 1976, as Congress member Kodikunnil Suresh has been made the opposition candidate against NDA nominee Om Birla. While elections to the Speaker's post were common before Independence, the position of the presiding officer of the Lok Sabha has witnessed contests only thrice in Independent India – in 1952, 1967 and 1976.
Income reported as long-term capital gains surged 132% year-on-year to Rs 8.20 trillion and short-term capital gains 43.2% to Rs 2.23 trillion in AY23, official data showed. The aggregate income reported from capital gains skyrocketed 105.3%. In the previous assessment year (AY22), the year-on-year rise in aggregate income from capital gains was 89%.
The Cabinet, on June 19, approved increases in the range of 1.4-12.7% in the minimum support prices (MSP) of 14 crops for the 2024-25 kharif season (July-June), but raised the support price for paddy, the key summer crop, by a relatively modest 5.35% to Rs 2,300/quintal. The MSP for paddy was fixed at Rs 2,183/quintal for the last kharif season, which was up 7% on year.
With a huge surplus of rice stocks at the central pool, the government is aiming to give a signal to farmers to diversify to more remunerative pulses and oilseeds especially in Punjab and Haryana.
Concerns over the week-long stalling of the monsoon progress have ebbed, with both IMD and Skymet seeing an imminent revival of the rains. Skymet said in an article posted on its website, “Conditions are becoming favourable for the advancement of monsoon over the eastern states of the country and proceed beyond in the next 3-4 days. On June 23, a trough is forming and running across West Uttar Pradesh to East Uttar Pradesh, Bihar and North Bengal. It is likely to get consolidated the next day and will have an embedded cyclonic circulation over East Uttar Pradesh and Bihar. It will be strengthened further and a tight circulation will be marked over central parts of Uttar Pradesh on June 25.”
The halting of monsoon has caused apprehensions in the farming community over the prospects of kharif sowing, in north and north-west India.
The Commission for Agricultural Costs and Prices (CACP) in the agriculture ministry has recommended a “dynamic import duty structure” for farm goods, in order to curb the surge in import of edible oils, which has adversely impacted domestic oilseed prices. “In addition, the duty differential between crude and refined oils should be kept at 10%-15%,” CACP in the price policy report for kharif crops marketing season (2024-25) has stated.
The mandi prices of mustard, which ruled significantly below the minimum support (MSP) of Rs 5650/quintal for the 2024-25 season (April-June) for the last two months have been currently ruling around MSP, due to procurement of oilseeds by the agencies under the price support scheme (PSS). Official sources told FE that prices across key mandis have either crossed MSP or at par.
While speaking at an event in Mumbai, RBI Governor Shaktikanta Das said that India is moving towards achieving 8% annual GDP growth on a sustainable basis. “India is at the threshold of a major structural shift in its growth trajectory, moving towards 8% GDP growth in a sustained manner,” the governor said, adding that he was confident of India achieving 7.2% GDP growth in FY25, as per the RBI forecast. During the last three years, India’s GDP has been rising by an average of 8.3% on the back of critical reforms.
The finance ministry is considering an increase in the standard deduction limit for income taxpayers under the new regime, while keeping the tax exemption-heavy old regime unchanged. As the NDA government prepares to present its first Budget of its third term, significant changes to the capital gains mechanism, which the income tax department has been urging a review of, are unlikely.
A traditional 'halwa' ceremony takes place one week before the Union Budget is presented. During this event, the finance minister distributes halwa to ministry officials and employees, marking the auspicious beginning of the Union Budget process.
The Union Budget for 2021-22 was a landmark for Independent India, being entirely digitized and presented in this format for the first time due to the COVID-19 pandemic.
In the history of Indian Budget speech, Finance Minister Nirmala Sithraman holds the record for the longest speech.