Finance Minister Nirmala Sitharaman will present the Union Budget for FY25 on July 23. The Budget session will commence on July 22 and conclude on August 12. Earlier, Parliamentary Affairs Minister Kiren Rijiju made the announcement on X. He posted, “Hon’ble President of India, on the recommendation of Government of India, has approved the proposal for summoning of both the Houses of Parliament for the Budget Session, 2024 from 22nd July, 2024 to 12 August, 2024 (Subject to exigencies of Parliamentary Business).”
In February this year, Nirmala Sitharaman had tabled the interim Budget, which is technically a vote on account ahead of the elections to take care of government expenses in the interim till a new Government is voted to power. This happens every 5 years or when the existing government is dissolved and elections are held.
The Engineering Export Promotion Council (EEPC India) has urged the government to revive the interest subvention scheme for exporters in its pre-budget recommendations, highlighting its importance amidst rising interest rates.
– EEPC India Chairman Arun Kumar Garodia called for restoring the 3% subvention rate for specific tariff lines and a 5% rate for MSME exporters across all product categories
– EEPC India also raised concerns over the exclusion of merchant exporters from the Interest Equalisation Scheme (IES), proposing a 3% subvention rate for them due to their low profit margins and high credit costs
– EEPC’s other recommendations included reinstating a 150% weighted deduction for R&D expenses, offering 100% depreciation for MSME investments in solar power generation, and implementing a 25% income tax slab for MSME manufacturing units with reinvestment conditions
The government should proceed with the disinvestment of public sector banks (PSBs) as they are in good condition, according to a research report by the State Bank of India (SBI) released on Monday. The report, titled “Prelude to Union Budget 2024-25,” also advocated for the consolidation of existing government-owned banks.
“With banks in good condition, the government should take a stance on the disinvestment of PSBs,” the report suggested.
Regarding the privatisation of IDBI Bank, the report noted that the government and Life Insurance Corporation of India are selling nearly 61 percent of their stake in the lender. Bids were invited from buyers in October 2022, and in January 2023, the Department of Investment and Public Asset Management (DIPAM) received several expressions of interest.
“We expect the government to clarify this in the Budget,” the report stated, indicating anticipation for more detailed plans in the upcoming financial announcements.
According to the data released by the Ministry of Finance, the Central Goods and Services Tax (CGST) collection came in at Rs 32,409 crore. The State Goods and Services Tax (SGST) stood at Rs 40,265 crore. Meanwhile, Integrated Goods and Services Tax (IGST) was at Rs 87,781 crore, including Rs 39,879 crore collected on imported goods.
According to the data released by the Ministry of Finance, Goods & Services Tax (GST) collections during the month of May 2024 stood at Rs 1.73 lakh crore. This is 10 per cent higher than the same period last year. For April, GST collection had breached the Rs 2 lakh crore milestone. The gross GST collection during April was recorded at Rs 2.10 lakh crore, up 12.4 per cent on-year.
Gross Goods and Services Tax (GST) collections came in at Rs 1.74 trillion in June (May transactions), up 8% on year, according to official sources. This was against Rs 1.73 trillion collected in the previous month. The year-on-year growth rate during June was the slowest in around three years. In May, the growth rate was 10%, the slowest in 34 months. During June, the government settled Rs 39,586 crore to the Central GST from Integrated GST collections, and Rs 33,548 crore to State GST, the source said.
During her address after the GST Council Meet, Finance Minister Nirmala Sitharaman emphasized the Centre’s commitment to bolstering states’ economies through prompt tax devolution and the settlement of GST compensation arrears to drive growth. She highlighted the ‘Scheme for Special Assistance to States for Capital Investment’, maintaining that while most loans are unrestricted, a portion remains conditional on states implementing citizen-centric reforms and specific capital projects across sectors.
The GST Council made following recommendations on GST on services:
After the 53rd GST Council meeting, GST Council recommended the following changes in GST rate:
The Goods and Services Tax (GST) Council meeting was held on June 22. Finance Minister Nirmala Sitharaman presided over the meeting. The meeting was attended by MoS finance Pankaj Chaudhary, chief ministers of Goa and Meghalaya, deputy chief ministers of Bihar, Haryana, Madhya Pradesh, and Odisha, besides finance ministers of states & UTs and other senior officers.
With Finance Minister Nirmala Sitharaman all set to table the Union Budget 2024 On July 23, industry leaders from the pharmaceutical sector are demanding renewed focus on the industry. Besides substantial R&D incentives, the sector is looking at tax relief and a strong IP framework. Additionally, the industry leaders said that expanding the PLI scheme to encompass the broader pharma sector would not only boost domestic manufacturing but also incentivize exports by providing financial assistance for establishing world-class manufacturing facilities.
Hospital industry is demanding a simplification of insurance processes and an increase in funding in the sector. The industry said that the upcoming Budget should focus on further strengthening India’s healthcare resources, infrastructure and technological prowess.
As the temperatures soar high with the demand for power continuing to escalate, analysts expect supportive reforms in the upcoming Budget to strengthen the country’s power infrastructure. “There is a sharp increase in adverse weather events. And most of the transmission and distribution systems do not have preparedness for such events. Funding and creation of climate resilient power infra is a segment where we can see the government focusing on,” said Anujesh Dwivedi, partner at Deloitte India.
Kiran Mazumdar-Shaw, Executive Chairperson, Biocon and Biocon Biologics, said that, for the pharmaceutical and biotech sector, “much like the production-linked incentive scheme, there is need for a research-linked incentive scheme.” Encouragement to research and innovation is crucial. “A research- linked incentive scheme with scope for tax deductions can be a key enabler for pharmaceutical companies to invest in research and innovation. The journey from lab to market is long and arduous and therefore tax incentives for investing in research and innovation can play a very important role,” she said.
It is not as if the government is oblivious to this need, she said while adding, “The industry has been constantly seeking this for sometime now and it is hoped that this ask from the Industry will be considered.”
The Budget address will be broadcast live on Parliament’s official channels, Sansad TV and Doordarshan, as well as on each channel’s own official YouTube page.
The Union Budget Web Portal (www.indiabudget.gov.in) also provides digital access to the Budget 2024 papers. This contains budget papers such as the yearly financial statement, grant requests, and finance bills specified by the Constitution.
An Economic Survey is a survey conducted to review the financial developments of the country in the previous fiscal year. It plays a key role in scrutinising different trends within various sectors of the economy like agriculture, industrial production, export and import infrastructure among other things. The survey generally has two parts: first is the part that talks about the economic challenges that the country is facing and second one deals with the analysis of the previous year. The Economic Survey is prepared under the supervision of the Chief Economic Advisor (CEA). It is presented a day before the presentation of the actual Budget.
While addressing a joint sitting of Parliament, President Droupadi Murmu said that the Union Budget will be a futuristic document and all reforms will be fast-tracked. “In the upcoming sessions, this government will present the first budget of this term. This budget will be an effective document of the government’s far-reaching policies and futuristic vision. Along with big economic and social decisions, many historic steps will also be seen in this budget,” Droupadi Murmu said.
As the Lok Sabha session commenced on June 24, Prime Minister Narendra Modi took oath as member of the 18th Lok Sabha. This was the first session of the 18th Lok Sabha following the general elections, in which the NDA secured 293 seats. The session concluded on July 2.
On June 26, Om Birla, a three-time BJP MP, was re-elected as the Lok Sabha Speaker for a second term. He won against the INDIA bloc’s candidate, Congress’ Kodikunnil Suresh, through a voice vote. After his re-election, Prime Minister Narendra Modi said, “It is a matter of honour that you have been elected to this chair for the second time. I congratulate you on behalf of the entire House and look forward to your guidance for the next five years. Your sweet smile keeps the entire House happy.”
With the government preparing its full Budget for FY25, North Block, which houses the finance ministry in New Delhi, is ‘quarantined’ starting June 13 until the Budget is presented on July 23. The ministry will remain out of bounds for visitors and media till the Union Budget is tabled in the Parliament. According to a report by PTI, all the entry and exit points of the finance minister, during the ‘quarantine’ period, are guarded by security personnel while the Intelligence Bureau (IB) personnel, assisted by Delhi police, keep a close watch on the movements of people entering the rooms of the officials working on the Budget.
On June 12, Nirmala Sitharaman formally took charge as the Finance and Corporate Affairs Minister of the newly formed NDA government. After taking charge, she instructed officials to start the budget formulation process. The early start of the preparation for the Union Budget is aimed to ensure that it is well-structured and effectively addresses the country’s economic priorities and even challenges. The finance minister will table the Union Budget for FY25 on July 23.
The first session of the 18th Lok Sabha, which commenced on June 24, concluded on July 2, with Speaker Om Birla announcing its closure. Speaker Om Birla highlighted that the Lok Sabha achieved 103% productivity during this session, which consisted of 7 sittings spanning approximately 34 hours, according to the Lok Sabha Secretariat.
This is the first Parliament session after the Lok Sabha elections held in April-June.
After approval from President Droupadi Murmu, the government announced that the Union Budget 2024 will be presented in the Lok Sabha on July 23. The Budget session will commence from July 22 and will conclude on August 12.
On July 7, the Ministry of Finance announced that the pre-Budget consultations for Union Budget 2024-25 that started from 19th June 2024 onward in the Ministry of Finance and chaired by Union Minister for Finance & Corporate Affairs Nirmala Sitharaman, concluded on 5th July 2024. In the course of the in-person consultations, more than 120 invitees across 10 stakeholder groups, including experts and representatives from farmer associations & agriculture economists; trade unions; education & health sector; employment & skilling; MSME; trade & services; industry; economists; financial sector & capital markets; as well as, infrastructure, energy and urban sector, participated in the meetings.
In the course of the consultations, FM Sitharaman expressed gratitude to the participants for sharing valuable suggestions and assured experts and representatives that their suggestions would be carefully examined and considered while preparing the Union Budget.
Finance Minister Nirmala Sitharaman will present the Union Budget on July 23. The Budget session will commence on July 22 and conclude on August 12. Earlier, Parliamentary Affairs Minister Kiren Rijiju posted on X, “Hon’ble President of India, on the recommendation of Government of India, has approved the proposal for summoning of both the Houses of Parliament for the Budget Session, 2024 from 22nd July, 2024 to 12 August, 2024 (Subject to exigencies of Parliamentary Business).”
Greetings! Welcome to the live coverage of Budget 2024-25. Here, we will keep you updated with all the possible announcements in the Union Budget. The government announced the date for the Budget presentation as July 23. Stay tuned for all the updates on Budget, factors that would affect the announcements in Budget, among other things.