Finance Minister Nirmala Sitharaman is all set to table the Union Budget in just about a week’s time. While every user group and stakeholder have their wishlist ready, sizeable cut in income tax rates is one of the most talked about topic. Given the BJP’s performance in the election and realities of balancing expectation of coalition partners, the popular views is that this will be a pro-People Budget aimed primarily to woo the angry middle-class. Schemes that are set to boost the rural economy may also see significant expansion.
Earlier, the finance minister held a series of pre-Budget consultation meetings with industry representatives and economists. Prime Minister Narendra Modi too held a high-level meeting with economists to gather suggestions on expectations from the Union Budget.
While the Union Budget will be presented on July 23, the annual economic survey will precede the Budget speech and will be released on July 22. The interim Budget was presented on February 1. This is the first Budget of the NDA 3.0 government and Nirmala Sitharaman’s seventh consecutive.
Nandini Piramal, Chairperson, Piramal Pharma Ltd, said, “As we approach the upcoming budget, we’d like to underscore how strengthening regulatory frameworks and fostering strategic public-private partnerships can go a long way in enhancing India‘s competitiveness on the global pharmaceutical landscape. Recognizing the pharmaceutical industry’s substantial contribution to India’s exports, we eagerly anticipate schemes that provide fiscal incentives to encourage such exports. These measures will empower pharmaceutical companies to further invest in creating/maintaining world class facilities, thereby significantly contributing to the nation’s economic growth. By streamlining regulatory processes and encouraging collaborative initiatives, we can accelerate the delivery of high-quality, affordable healthcare solutions worldwide.”
Further, she added that pharma companies need to remain committed to advancing healthcare innovation on a global scale and the upcoming budget presents an opportunity to bolster India’s capabilities in driving transformative healthcare solutions, reinforcing its position as a preferred partner for global pharma collaborations.
Niranjan Banodkar, Group CFO and Head Sustainable Finance, YES BANK, said, “As we look ahead to the Union Budget 2024, an emphasis on green financing and sustainability is crucial for achieving India’s climate goals and for driving sustainable growth.”
The interim Budget 2024 demonstrated the government’s commitment and renewed impetus towards sustainable development, with enhanced allocations towards rooftop solarization, the National Green Hydrogen Scheme, and Blue Economy 2.0. Niranjan Banodkar said that sustained budgetary allocations for climate mitigation and adaptation, focus on digital public infrastructure and enhanced support for promoting indigenous manufacturing is crucial to provide the necessary economic stimulus to maintain India’s green growth momentum and achieve its net zero by 2070 target.
Milan Mody, Managing Partner, N.A. Shah Associates, said, “The 4 tax rates should be subsumed into 3 tax rates which would result in ease in compliance as well as simplify the GST regime. Further, Industry which may have the potential but are being constrained to grow due to inverted duty structures in industries like Textiles, Pharma etc. should get relief to overcome blockage of working capital and other challenges. Economic growth through personal tax changes will also leave more disposable income with consumers which in turn lead to more expenditure / consumption and thereby leading to higher GST Collection. This will surely lead to a chain reaction in the India Growth Story.”
The Finance Ministry has announced that the Budget document will be available in English and Hindi. This will be available on the “Union Budget Mobile App” and it will be available on both the Android and Apple OS platforms. This will be available as soon as the Budget Speech will be completed by the Union Finance Minister Nirmala Sitharaman in Parliament on July 23, 2024.
The Budget documents will be available in English and Hindi on the "Union Budget Mobile App" available on both the Android and Apple OS platforms after the completion of the Budget Speech by the Union Finance Minister in Parliament on 23rd July, 2024. (3/4)
— Ministry of Finance (@FinMinIndia) July 16, 2024
Kanak Gupta, Group Director, Seth M. R. Jaipuria Schools, said, “I’ve always maintained that it would take a very brave initiator to plan and spend the allocated 6% of GDP on education as per the previous years’ budgets. The Union budget should be a roadmap that propels education towards endless possibilities of socio-economic progress.” The last few years, the spend on education has been oscillating between 2.5% – 3%.
Kanak Gupta further stated that there should be an encouraging collaboration between academia, industry, and research institutions that can foster an ecosystem that supports cutting-edge research. “I foresee that the bulk of growth will come from Tier 2 and Tier 3 cities of India, and I hope the budget gives encouragement to educators like us to continue our journeys into the heartland of India,” she added.
“Increased funding is the key to unlocking the vision of AI in classrooms. As of 2023, approximately 29% of children with disabilities in India were not enrolled in schools; research also indicates one in sixty-eight students in India having certain learning challenges. I am expecting focus on the same as well. With the mandates of the Gross Enrolment Ratio (GER) outlined in the NEP 2020, the budget must continue its progressive journey,” Kanak Gupta said.
She also stressed on the importance of comprehensive teacher training programs, continuous professional development, and innovative teaching methodologies towards unlocking the potential of educators.
Suman Chowdhury, Chief Economist & Head of Research, Acuité Ratings & Research, said, “While continuing its commitment to spending that will boost growth of the economy, the government is also expected to demonstrate its commitment to fiscal consolidation and control on market borrowings.” In the current scenario, on the fiscal front, there have been two important developments that have taken place: 1) higher than projected tax revenues in the first quarter of the year which may induce the government to increase its tax collection estimates, and 2) substantially high dividend from RBI of Rs 2.1 trillion.
Suman Chowdhury said, “Such additional inflows in the current year may support additional spending on welfare and also on capital expenditure. At the same time, we expect the government to demonstrate its commitment to fiscal consolidation by not just sticking to the glidepath of a 4.5% fiscal deficit by FY26 but also making an effort to improve on it. While the disinvestment programme of the government is uncertain at this point, we may see some measures to step up on asset monetization.”
TDP Leader and Andhra Pradesh Chief Minister N Chandrababu Naidu has been pushing for higher allocations for state. Additionally the Chief Minister is also keen about setting up an Oil Refinery in Andhra Pradesh. He has also met Petroleum Minister Hardeep Puri with regards to this during his previous visit to Delhi earlier in July.
Andhra Pradesh Chief Minister N Chandrababu Naidu is in Delhi ahead of the Budget on July 23. This is Naidu’s second visit after the Modi 3.0 Cabinet was sworn in. Naidu met Home Minister Amit Shah and discussed the challenges that Andhra Pradesh is facing, in terms of fiscal concerns.
Saunak Saha, Partner, Climate Change and Sustainability Services, EY India, said, “It is crucial for the government to prioritize ESG and sustainability initiatives to drive long-term economic growth and environmental resilience. Enhanced incentives for green technologies, stricter regulations on carbon emissions, and increased funding for sustainable infrastructure projects are essential.” He further added that India’s energy sector and transport sector would need to decarbonise which eventually would help other sectors as well on their decarbonisation agenda. These measures, he said, will not only help India meet its climate commitments but also position the nation as a leader in sustainable development.
Muddassar Nazar, CEO, Birla Brainiacs, said, “My budget expectations focus on enhancing digital infrastructure, equitable access, and policy support for innovative learning models. Key areas include prioritizing the expansion of high-speed internet to rural areas and providing subsidies for digital devices to bridge the digital divide, ensuring no student is left out in the cold.”
Further, he said that funding should be allocated for developing specialized homeschooling and skill-based curricula, including a comprehensive financial literacy program to enhance students’ understanding of money management. He also said that resources should be funded for special education and the creation of content in regional languages to ensure accessibility for all students, so no one slips through the cracks. Lastly, he added, “funds should be allocated for mental health initiatives and holistic well-being programs to support students’ overall development, ensuring they are fit as a fiddle. A budget addressing these areas can transform education, making it accessible, equitable, and empowering for all students.”
Finance Minister Nirmala Sitharaman will present the Union Budget on July 23 in Lok Sabha. The Budget parliamentary session will commence on July 22 and continue till August 22. The Economic Survey will be released on July 22. The previous Budget was presented by the finance minister in February and it was an interim Budget or a vote on account, owing to the Lok Sabha elections that were scheduled in April and May.
NP Ramesh, COO and Co-Founder of Orb Energy, said, “As we approach the Union Budget, the solar industry eagerly anticipates pivotal measures to accelerate India‘s renewable energy goals. Key priorities include enhancing residential solar adoption with proposed personal income tax benefits up to 3 lakhs. This can be considered instead of the current subsidy of Rs 78,000. For commercial and industrial (C&I) sectors, increasing depreciation benefits to 60-80% from the current 40% will incentivize substantial investments in solar installations, bolstering sustainability efforts across businesses.”
He further added that the removal of anti-dumping duties on raw materials for solar modules is crucial to enhancing manufacturing competitiveness and reducing dependency on imports. “Additionally, a proposed 7-year tax holiday for investments in PV module or solar cell production will stimulate domestic manufacturing capabilities, fostering job creation and economic growth,” he said.
The Women Empowerment vertical of the BRICS Chamber of Commerce and Industry (BRICS CCI) has urged the finance minister to introduce policies and initiatives to support women entrepreneurs nationwide. They highlighted that women often face gender biases and limited resources, which impede their access to finance, technology, and market opportunities. To tackle these issues, the organization has proposed 10 key recommendations for the Union Budget 2024-25.
These recommendations include allocating funds for gender-disaggregated data on women entrepreneurs, expanding financial schemes for women-led MSMEs, and increasing support for Skill India with specialized training in digital literacy and e-commerce for women.
Aluminium producers have urged the government to raise import duty on aluminium scrap from 2.5% to 7.5% in the upcoming budget. They also advocate maintaining the duty on primary aluminium imports at 7.5% or increasing it to 10%. This measure aims to curb the influx of sub-standard materials and protect the domestic industry, which supports the livelihoods of over 10 lakh people.
Senior Congress leader Jairam Ramesh on Tuesday said that the upcoming budget’s success will be measured by its potential to revive and rejuvenate India‘s Micro, Small, and Medium Enterprises (MSMEs). He further targeted the central government, attributing the decline of MSMEs to factors such as demonetisation, the Covid-19 lockdown, GST implementation and Chinese exports.
The outlook on health needs a shift towards prioritizing the sector through stimulus, organized policies, and rapid adoption of digital tools and services. Expanding the Ayushman Bharat Digital Mission and leveraging its last-mile reach to enhance rural healthcare should be expedited. The emphasis should be on transformative changes rather than superficial fixes. Key areas include transforming public infrastructure, upgrading medical colleges, and investing in rural healthcare. Financial commitments must support public healthcare systems in both metro cities and rural areas.
The upcoming Union budget will prioritize higher outgoes on welfare schemes to bolster sagging consumption growth, Care Ratings said on Tuesday. The budget aims to stimulate consumption through increased allocations for the rural economy, welfare schemes, and agriculture. Welfare schemes could see a rise in revenue expenditure by Rs 75,000 crore compared to the interim budget earlier this year. Key allocations are expected for employment guarantee programs, PM Awas Yojana, PM Gram Sadak Yojana, PM Kisan Samman Nidhi, and schemes for labor-intensive small businesses. This strategic focus aims to support economic growth and enhance rural development.
Ahead of the Union Budget 2024 presentation on July 23, the Finance Ministry held the crucial ‘halwa ceremony’ at North Block today. This tradition, integral to the Budget preparation process, marks the beginning of the lockdown at the finance ministry. Following the ceremony, no officials are permitted to leave the ministry compound until the financial document is presented in Parliament.
Read More: The halwa ceremony and its significance in budget preparation
The Halwa ceremony, signifying the final stage of the Union Budget 2024 preparation process, was held today in North Block, attended by Union Finance & Corporate Affairs Minister Nirmala Sitharaman.
This traditional Halwa ceremony is conducted annually before the “lock-in” process of Budget preparation begins.
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#watch | Delhi: The Halwa ceremony, marking the final stage of the Budget preparation process for Union Budget 2024, was held in North Block, today, in the presence of Union Finance & Corporate Affairs Minister Nirmala Sitharaman.
— ANI (@ANI) July 16, 2024
A customary Halwa ceremony is performed… pic.twitter.com/mVScsFHun9
Union Minister HD Kumaraswamy announced that the third phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme is in its final stage but will not be included in the upcoming Union Budget on July 23.
In the Interim Budget, Finance Minister Nirmala Sitharaman allocated Rs 2,671.33 crore for the FAME scheme. The government launched this initiative to accelerate the transition to green mobility, offering incentives for purchasing electric vehicles.
Former World Bank chief economist Kaushik Basu emphasized the need for the Modi government to focus on the welfare of ordinary citizens in the upcoming Budget, urging the allocation of more funds to the manufacturing sector to support small businesses and create jobs.
In an interview with PTI on Tuesday, Basu stressed the critical importance of prioritizing ground-level economic welfare. “I hope that, starting with the Union Budget this month, the government will turn its attention to the welfare of ordinary citizens and not just to climbing up the chart of aggregate GDP,” he stated.
Union Finance Minister Nirmala Sitharaman is set to present the Budget for 2024-25 in the Lok Sabha on July 23.
Basu also suggested that the wealthy could afford to pay higher taxes, and these funds should be used to incentivize the manufacturing sector. “This can go a long way in boosting demand for labor, helping small businesses, and raising the income of ordinary people,” he noted.
The government has scheduled an all-party meeting on July 21 ahead of the Monsoon Session of Parliament, which begins next Monday, according to sources. If he attends, this will be the first session-eve meeting for Congress MP and Leader of Opposition Rahul Gandhi.
However, the Trinamool Congress will not participate, as they observe July 21 as Martyrs’ Day. This day commemorates the 13 Congress supporters who were shot by Kolkata Police during a 1993 march to the state secretariat, Writers’ Buildings, under the CPI(M)-led Left Front government in West Bengal.
The union budget will be presented on July 23.
The government is expected to lower the fiscal deficit to 4.9-5 percent of GDP for this financial year, supported by revenue growth. Initially, the fiscal deficit was estimated at 5.1 percent in the interim Budget presented in February.
– Realtors’ body NAREDCO proposes increasing the tax exemption on interest for self-occupied property loans from Rs 2 lakh to Rs 5 lakh in the upcoming budget to boost housing demand
– Under Section 24 of the Income Tax Act, the current deduction allowed on interest for loans on self-occupied property is capped at Rs 2 lakh
– The association cites rising property prices and mortgage rates as key reasons for the proposed increase in the tax exemption limit
– Builders are also seeking additional tax incentives to enhance both the demand and supply of affordable homes
– NAREDCO highlighted that the annual value of property held as stock-in-trade and not let out is considered nil for up to two years post-construction completion certification
– After the two-year period, notional income from stock-in-trade properties is subject to taxation
The suggested measures are aimed at revitalizing the housing sector amid increasing costs, thereby making home ownership more accessible.
Nomura said that the Union Budget will be crucial for monitoring the new government’s economic vision and its handling of the political landscape. While the government has pledged to bring the fiscal deficit down to 4.6 per cent by FY26, Aurodeep Nandi from Nomura said that the fiscal glide path will be an important topic to watch in the Budget. He added that the political theme of the government will be closely watched, which is also dependent on coalition partners. Nandi further added that the demands being made by the allies could result in increased borrowing, direct handouts to citizens and local infrastructure spending.
“The standard deduction of Rs 50,000 or the amount of salary, whichever is lower, is available for both old and new tax regimes from AY 2024-25 onwards. In new tax regime the taxpayer can claim only few exemptions u/s 10(10), 10 (10AA) etc. and deductions u/s 16,80CCD/80JJAA etc. can be claimed in the return and rebate u/s 87A to the extent of Rs 25,000 can also be claimed subject to fulfilment of certain conditions prescribed under Income tax act.
In Old tax regime the taxpayer can claim all the exemptions prescribed u/s 10 (HRA, LTA etc.) and deductions u/s 16, 80C (EPF, LIC, PPF etc.) 80CCD, 80D, 80G etc. and rebate u/s 87A to the extent of Rs 12,500 can also be claimed subject to fulfilment of certain conditions prescribed under Income tax act.”
“Why is private investment, a key engine of economic growth, still so very sluggish recording a 20-year low during April-June 2024?,” the Congress party asked the finance minister ahead of the presentation of the Union Budget on July 23. It dismissed the government’s claims of accelerated economic growth and substantial job creation.
Nitya Sharma, Founder and CEO, Simpl, said, “This Union Budget should be focused on adding higher disposable incomes in the hands of consumers, driving consumption and reducing the cost of operations for businesses. Additionally, it should help create a level playing field for homegrown brands through simpler financing options, offering a boost to their manufacturing capabilities by providing sops to establish units within specialised manufacturing zones and further simplify the ease of doing business. These interventions, if applied, will help strengthen the fast growing internet commerce sector in India, which includes e-commerce and quick commerce, and have a ripple effect on private investments, employment generation and increase the sector’s contribution to the country’s GDP.”
Karthik Srinivasan, Chief Business Officer, HDB Financial Services, an HDFC Bank subsidiary, said, “As we advance towards the ambitious USD 5 trillion economy milestone, we look forward to continued support for policies that enhance digital infrastructure, particularly in the banking and fintech sectors, to strengthen the economy. Over the years, the borrowing prospects of MSMEs have improved, and this budget should lay the groundwork for a more inclusive, resilient, and dynamic financial ecosystem for MSMEs. Implementation of these measures will not only benefit the NBFC sector but also contribute significantly to the rural economy and the financial well-being of BHARAT.”
Nirmalya Chatterjee, Country VP, Nemetschek Group – Indian Subcontinent, said, “Our budget expectations are shaped by the continued urbanization and infrastructural advancements across India. The government’s push for smart cities and sustainable development has created a favorable environment for growth in the AEC industry. We foresee increased allocation towards technology-driven solutions that enhance efficiency and precision in project execution. This includes investments in Digital Construction Technology, digital twin technologies, and integrated project delivery systems.”
He further added that the budget for construction projects should reflect a higher percentage of spending on digital transformation, aiming to reduce costs and time overruns while improving quality and safety. He also talked about emphasis on green buildings and sustainable construction practices. “This shift is in line with global trends and regulatory frameworks pushing for a more sustainable future. We are optimistic about the budget outlook and ready to contribute to the AEC sector’s growth through innovation and collaboration,” he added.