Union Budget 2024 Date Highlights: Finance Minister Nirmala Sitharaman on July 23 will present the Union Budget 2024-25, with policymakers advocating for a reconsideration of indirect tax rates to stimulate sluggish consumption. The Budget session will start from July 22 and end on August 12, Parliamentary Affairs Minister Kiren Rijiju said on Saturday. During her speech during the joint session of Parliament, President Droupadi Murmu said that the Union Budget will have many “historic” steps in it and will have major social and economic decisions in it. An interim Budget was presented in February on account of the Lok Sabha elections. The pre-Budget consultations, that was chaired by the Finance Minister, ended today.
Budget 2024 Highlights: Will Nirmala Sitharaman present a 'please-all' Budget? Catch all details on date, time, where to watch, Budget Expectations here.
The recent general elections placed the BJP in a relatively uncomfortable position, falling short of an outright majority and needing to rely on coalition partners to govern. With upcoming elections in Maharashtra and Haryana in October, the Budget is viewed as a crucial tool to attract voters.
While policymakers are finalizing the incentives, official sources suggest they may include personal income tax reliefs, increased retention of Agniveers in the regular defence services, and additional government support for urban housing to stimulate the labour-intensive construction sector.
The Union Budget for 2024-25 may likely announce measures to placate the middle class and the low-income population, who have been hit by sticky food inflation and income stagnation.
The scheme has been developed with extensive participation from stakeholders in the electronics industry, ensuring that their insights and concerns are incorporated. Despite meeting most criteria, companies face challenges with local sourcing norms due to inadequate domestic manufacturing capabilities of high-quality components. This limitation in local component manufacturing makes it difficult to find eligible companies willing to participate in the scheme. Industry concerns highlight that addressing these challenges is crucial for the scheme's success, as it aims to build a robust ecosystem for electronics manufacturing in India.
The scheme is projected to receive a budgetary allocation between Rs 35,000-40,000 crore. This initiative aims to strengthen local sourcing of components and establish a solid ecosystem for electronics manufacturing in India. By promoting domestic production and reducing reliance on imports, the scheme seeks to enhance the country's self-sufficiency in the electronics sector, ultimately boosting the overall growth and sustainability of the industry.
According to MoneyControl, Budget 2024-25 is likely to introduce a new Production Linked Incentive (PLI) scheme for sub-assemblies and components in the electronics sector.
According to MoneyControl, reports indicate possible amendments to the Insolvency and Bankruptcy Code (IBC), 2016, in the upcoming 2024 Union Budget.
Recommendations from Lawyers:
1. Increase NCLT Benches: Lawyers recommend expanding the number of benches at the National Company Law Tribunal (NCLT) to alleviate case backlog and bolster India's insolvency framework.
2. Designated Courtrooms: They propose augmenting courtroom capacity and dedicating them to specific stages of the Corporate Insolvency Resolution Process (CIRP), including administrative petitions handled by Registrar courts.
Statement by Sanjeev Kumar:
Sanjeev Kumar, Partner at Luthra and Luthra Law Offices India, advocates for specialized courtroom allocations for different petitions during various CIRP stages to enhance procedural efficiency.
Expected Amendments:
1. Addressing Critical Gaps: Anticipated amendments in the upcoming budget aim to rectify crucial shortcomings in the IBC, ensuring prompt resolution of distressed assets.
2. Redesigning CIRP: Proposed changes may involve restructuring the CIRP framework to empower financial creditors to lead corporate debtor resolutions outside traditional judicial channels.
Both Naidu and Nitish are poised to advocate for increased financial allocations to their states in exchange for their support to the BJP.
Naidu's Financial Requests Include:
1. Seeking over Rs 1 lakh crore ($12 billion) in financial support.
2. Funds earmarked for metro projects in Vijayawada, Visakhapatnam, and Amravati.
3. Allocation for a light rail project.
4. Proposal for a Vande Bharat train service connecting Vijayawada to Mumbai and New Delhi.
5. Grants aimed at developing backward districts.
6. Support for infrastructure ventures like the Ramayapatnam Port and an integrated steel plant in Kadapa.
Bihar's Financial Requests Include:
1. Funding for the establishment of nine new airports.
2. Allocation for two power projects.
3. Financial support for two river water management programs.
4. Establishment of seven new medical colleges.
Both states are also urging the Centre to nearly double the unconditional long-term loans provided to all states for infrastructure development, raising the total to Rs 1 lakh crore ($11.98 billion), as reported by Reuters.
The hospitality industry is urging the government to grant hotels infrastructure status to boost investment appeal and is advocating against labeling hotels as luxury or 'sin goods.' They are also seeking incentives like tax breaks to promote sustainable practices. Ahead of the budget, there's a push to prioritize tourism for its potential to drive GDP growth and create jobs.
Industry bodies are calling for increased incentives for research and development (R&D) investments in the domestic pharmaceutical sector, emphasizing the need for corporate tax concessions to foster growth. Establishing a robust intellectual property rights regime is deemed essential for the industry's expansion. Anil Matai, Director General of the Organisation of Pharmaceutical Producers of India (OPPI), urges the government to consider methods such as deductions on R&D expenses and research-linked incentives for multinational companies (MNCs). Matai also suggests extending the scope of section 115BAB of the Income Tax Act, 1961, to companies solely engaged in pharmaceutical R&D, with a 200% deduction rate on R&D expenditures.
The meetings chaired by Sitharaman witnessed the participation of Minister of State for Finance Pankaj Chaudhary; Finance Secretary and Secretary Expenditure, T V Somanathan; Economic Affairs Secretary, Ajay Seth, DIPAM Secretary, Tuhin K Pandey, Financial Services Secretary Vivek Joshi and Revenue Secretary, Sanjay Malhotra among others.
The Finance Ministry in a statement said the pre-budget consultations for Union Budget 2024-25 that started from June 19 onward concluded on July 5, 2024.
In the course of in-person consultations, more than 120 invitees across 10 stakeholder groups, including experts and representatives from farmer associations and 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, it said.
Finance Minister Nirmala Sitharaman has wrapped up consultations with a wide array of stakeholders, encompassing industry representatives and social sector leaders, as part of the budget formulation process.
Scheduled for July 23, Sitharaman's forthcoming budget marks her seventh presentation. It also signifies the first comprehensive budget of Modi 3.0, poised to chart the course towards "Vikshit Bharat" (developed India) by 2047.
Industry bodies, including the Organisation of Pharmaceutical Producers of India (OPPI), are emphasizing the need for incentivizing research and development (R&D) investments, offering corporate tax concessions, and establishing an effective intellectual property rights regime to bolster growth in the domestic pharmaceutical industry.
With the presentation of Union Budget 2024, Finance Minister Nirmala Sitharaman will break the record of Morarji Desai as it will be her seventh consecutive budget.
India's GDP grew 7.8 per cent annually in the fourth quarter (Q4) of FY24, the biggest quarterly growth rate. Furthermore, the Centre increased its projected FY24 growth rate to 8.2 per cent.
It is expected that the union budget 2024 may prioritise infrastructural development and also other important sectors including defence, railways and renewable energy.
It is anticipated that the upcoming budget 2024 may increase the standard deduction limit in income tax for salaried individuals from Rs 50,000 to Rs 1,00,000.
The finance ministry is reportedly contemplating an increase in the standard deduction limit for income taxpayers under the new tax regime while maintaining the current provisions of the tax exemption-heavy old regime.
As per a report by Moneycontrol, the finance minister may consider raising the standard deduction to up to Rs 1 lakh per annum in the forthcoming budget.
A top priority for CM Naidu was the Polavaram Project, a major national irrigation initiative vital to Andhra Pradesh's agricultural sector. He advocated for expedited support to ensure the swift commissioning of this critical project.
In the upcoming Union Budget 2024-25, the government is anticipated to continue prioritizing infrastructure development. A report in Mint suggests that there are potential plans to increase capital expenditure allocations for the Ministry of Road Transport and Highways (MoRTH) for FY25.
One of the primary demands made by representatives of farmer bodies is to increase the annual installment amount under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) from Rs 6,000 to Rs 8,000. According to various media reports, they addressed this and other pressing issues affecting the agricultural sector during a meeting with the Finance Minister.
India's defense production has achieved a historic milestone, reaching around Rs 1.27 lakh crore in the financial year 2023-24. This represents a 16.7 percent increase over the previous year and an impressive 60 percent growth since 2019-20.
Retail inflation maintained its downward trajectory, hitting a one-year low of 4.75% in May, according to data from the National Statistical Office (NSO). This decline was primarily due to a slight reduction in food prices. Overall inflation has been easing sequentially since January 2024, fluctuating narrowly between 5.1% in February and 4.8% in April.
Andhra Pradesh Chief Minister Chandrababu Naidu, armed with an extensive agenda for his state, spent two days in the nation’s capital, meeting with Prime Minister Narendra Modi, Union Home Minister Amit Shah, and several other Cabinet ministers. Following his decisive win in the recent assembly elections and his party's rise as the second-largest NDA constituent in the Lok Sabha, this marks Naidu’s first opportunity to address state issues with Union ministers.
Parliament's Budget Session is scheduled from July 22 to August 12, as announced by Parliamentary Affairs Minister Kiren Rijiju on Saturday. Union Finance Minister Nirmala Sitharaman will present the budget on July 23.
TDP Leader and a key NDA ally, Chandrababu Naidu has submitted his wishlist to Prime Minister Modi. Some of the most prominent inclusions that they want in the Budget are additional capex support for Andhra Pradesh as well as short-term funds for the state.
The full budget for FY25 is expected to go heavy on the welfare aspects. Given the fact that the key NDA leaders have shared their wishlists with the PM, the understanding is that the Govt will use the additional cash in hand (from the windfall dividend payout by RBI) to more welfare schemes. Farmers, housing, women oriented schemes are likely dee greater deployment. Experts believe healthcare and education also need to be given prominence.