Union Budget 2024 Date, Time Highlights: With the new government sworn in, all eyes are now on the full Budget for FY25. Whar are the possible dates for Finance Minister Nirmala Sitharaman’s Budget presentation? Well, reports indicate that the Budget may be presented towards the end of July with the commencement of the Monsoon Session of the Parliament.
Pre-budget consultations, starting June 18 and lasting seven to ten days, will influence the final schedule. Depending on when these consultations finish, the budget is expected to be tabled towards the end of July, closer to the third week. The probable dates for Budget presentation vary from July 15 – 22 .
Union Budget 2024 Date and Time Live Updates: Follow real-time updates here on Budget FY25 Expected Date, FM Nirmala Sitharaman’s speech, Budget expectations, and much more.
Sitharaman in her Interim budget speech said, “Building on the massive tripling of the capital expenditure outlay in the past 4 years resulting in huge multiplier impact on economic growth and employment creation, the outlay for the next year is being increased by 11.1 per cent to eleven lakh, 17 eleven thousand, one hundred and eleven crore rupees (` 11,11,111 crore). This would be 3.4 per cent of the GDP. “
In the interim budget presented in February, the government focused on economic policies to boost growth, support inclusive development, increase productivity, and create opportunities for everyone. They promised special attention to the eastern region, including Bihar, Jharkhand, Chhattisgarh, Odisha, and West Bengal. The goal is to turn these areas into strong centers of growth as part of India‘s plan to become a developed nation by 2047.
TT Krishnamachari succeeded CD Deshmukh as finance minister and was known for his diligent work and focus on taxation. In 1957, he introduced wealth tax and expenditure tax, encouraging taxpayers to show their patriotism by paying these taxes. 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.
‘India Strategy’ report by Prabhudas Lilladher, a stock broking company mentions that after winning the election and forming the NDA government at the center, the government will continue its capital spending. It also notes that the government will focus on growth led by capital expenditure in areas like PLI (Production Linked Incentives), roads, ports, aviation, defense, railways, and green energy. This is supported by a 20 basis points lower fiscal deficit in FY24, normal monsoons, and a Rs 2.1 trillion dividend from the RBI.
“India Strategy” report by Prabhudas Lilladher, a stock broking company mentions that after winning the election and forming the NDA government at the center, the government will continue its capital spending. It also notes that the government will focus on growth led by capital expenditure in areas like PLI (Production Linked Incentives), roads, ports, aviation, defense, railways, and green energy. This is supported by a 20 basis points lower fiscal deficit in FY24, normal monsoons, and a Rs 2.1 trillion dividend from the RBI.
The Union Budget is also referred as the Annual Financial Statement in Article 112 of the Constitution of the country.
Preparation for Union Budget 2024-25 began on Thursday, prompting North Block, home to the finance ministry, to enter a state of ‘quarantine’ until the Budget presentation in July. Earlier this year, the finance minister had presented an interim budget on February 1.
Nirmala Sitharaman, set to present her seventh consecutive Budget, is poised to surpass Morarji Desai’s record. The forthcoming Budget, slated to be the first under Modi 3.0 Cabinet, continues Sitharaman’s impressive streak in finance leadership.
In 2014, when the Narendra Modi government first took office, Arun Jaitley, representing the Bharatiya Janata Party (BJP), assumed the role of Finance Minister. Jaitley presented his inaugural budget for the Modi administration on July 10, 2014, approximately two months following the government’s inauguration in May 2014. This marked the transition from the previous UPA government, led by Finance Minister P Chidambaram.
TT Krishnamachari, following CD Deshmukh as finance minister, was an industrious figure with a keen interest in taxation. In 1957, he 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. Jawaharlal Nehru, India’s first prime minister, also served as the Union Finance Minister in 1958-59, becoming the first to present the national budget.
The first Budget of the Modi 3.0 Cabinet is anticipated to be unveiled in the third week of July, likely between July 15-21. Industry sources suggest the Budget will emphasize continuity in certain policies while prioritizing expansive welfare schemes. Furthermore, there are expectations of extensions for existing schemes beyond their scheduled durations.
In early February, the finance minister introduced an interim budget, serving as a provisional financial blueprint to sustain government operations until the enactment of the new budget. The interim budget outlines expenditure plans and key allocations, typically refraining from introducing significant new policies or reforms. This strategy aims to maintain governance continuity and stability until the newly elected government assumes office after elections.
The evolution of budget presentation in India has been intriguing, moving from a traditional briefcase to a bahi khata, and now to a digital tablet. In 2019, Finance Minister Nirmala Sitharaman introduced a traditional twist to the budget presentation by replacing the traditional briefcase with a red-colored bahi khata. This change marked her first Budget presentation. Subsequently, for the Union Budget 2021-22, Finance Minister Nirmala Sitharaman presented the budget digitally using a tablet.
The first Budget presentation by Modi 3.0 Cabinet is expected to be tabled in the third week of July. According to Sources, the Budget is expected to be tabled in the July 15-20 week. The popular assumption in industry circles is that the Budget may look at certain policy continuity but at the same time go big on welfare aspects. Certain existing schemes may be extended beyond their scheduled date as well.
The first Budget presentation by Modi 3.0 Cabinet will be the 7th Budget presented by Finance Minister Nirmala Sitharaman in a row. With this she would then surpass Morarji Desai’s record of presenting 6 consecutive Budgets.
When the Narendra Modi government first came to power in 2014, Arun Jaitley was appointed as the finance minister from the Bharatiya Janata Party (BJP). Jaitley’s maiden budget for the Modi government was presented on 10 July 2014, almost two months after the Modi government was sworn in in May 2014, replacing the previous UPA government, which had P Chidambaram as the finance minister.
The 1986 Budget, which was introduced by VP Singh while he was Finance Minister, included innovative measures to support economic inclusiveness. The creation of a Small Industries Development Bank, subsidies on bank loans for cobblers and rickshaw pullers, and an accident insurance programme for municipal sweepers were among the main ideas.
It is anticipated that the Budget is expected to be present in the Parliament during the week of July 15-21. However, there is no such official confirmation.
The initial Budget, presented on February 1, followed tradition and served as a vote on account by the incumbent Government ahead of elections. Typically, a full Budget is presented once a new Government is sworn in, which is expected to happen in mid-July this year. Given that the BJP-led NDA Government has been re-elected, significant policy shifts are unlikely, with most anticipating continuity in existing policies.
India‘s budget presentation has evolved in an interesting way, going from a suitcase to a bahi khata and now to a tablet. The budget was given a traditional twist in 2019 when Finance Minister Nirmala Sitharaman swapped the outdated briefcase for a crimson bahi khata. She said this at her initial budget presentation. The Union Budget for 2021–22 was later given digitally on a tablet by Finance Minister Nirmala Sitharaman.
The finance minister presented an interim budget on February 1, which functions as a temporary financial plan to maintain government operations until the new budget is enacted. It includes expenditure plans and key allocations but usually avoids introducing major new policies or reforms. This approach ensures continuity and stability in governance until a new government takes office following the elections.
The wholesale price index (WPI)-based inflation accelerated for the third consecutive month to 2.61 per cent in May, due to increase in prices of food articles, manufacturing of food products, crude petroleum and natural gas, mineral oils, and other manufacturing, said the provisional data released by the Ministry of Commerce & Industry.
India’s economy is expected to grow at a ‘robust’ 8 per cent in FY25, Confederation of Indian Industry (CII) president Sanjiv Puri said, citing the second generation reforms that the Narendra Modi-led government will undertake, good monsoon prospects, and the improved external situation. He said, “A lot of policy interventions in the past have put the economy on a much stronger wicket.”
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%.
The corporate tax rate for existing companies has been reduced from 30% to 22% in the interim Budget released on February 1. Additionally, a special reduced rate of 15% has been introduced for certain new manufacturing industries.
As per the reports, the work related to the preparation of Union Budget 2024-25 commenced on Thursday, and so, North Block, which houses the finance ministry, is in ‘quarantine’ starting Thursday until the Budget is presented in July.
As per the sources, the full Budget for FY25 may also incorporate a directional road map for the next five years. The Government is likely to align policies with the vision of making India a developed country (Viksit Bharat) by 2047. The year 2047 would be very important as that would be the centenary year of Independence of the country.
The Budget is expected to be present in the Parliament during the week of July 15-21. It is anticipated that the existing schemes may see revamps along with an emphasis on welfare and promotion of investment within the country. Some schemes may extend beyond their current deadlines.
By using a dual budget approach, the new government can implement its financial plans and policies without the outgoing government having to commit to long-term projects or make major policy changes right before an election. In India, this strategy is commonly used during election years to ensure a smooth transition between administrations.
The agenda for the Council meeting has not been made public yet. As usual, the Union Finance Minister will lead the 53rd Goods and Services Tax Council meeting, which will include finance ministers from various states and other officials.