Union Budget 2024-25 Date Highlights: Nirmala Sitharaman, has been reappointed as the Finance Minister in Modi 3.0 Cabinet. According to sources, the Government is expected to present the Union Budget in Parliament in the third week of July. The official announcement is yet to be made. This is going to be the first full budget under Modi 3.0. FM Sitharaman is poised to make history as she is on track to become the first Finance Minister to deliver seven consecutive Budget presentations — comprising six complete budgets and one interim — surpassing Morarji Desai’s record in this regard.
Earlier, Parliamentary Affairs Minister Kiren Rijiju announced that the first session of the 18th Lok Sabha will begin on June 24 and continue till July 3. Kiren Rijiju posted on X, “First Session of 18th Lok Sabha is being summoned from 24.6.24 to 3.7.24 for oath/affirmation of newly elected Members, election of Speaker, President’s Address and discussion thereon. 264th Session of Rajya Sabha will commence on 27.6.24 and conclude on 3.7.24.”
The Budget is expected to be presented in Parliament during the week of July 15-21. Existing schemes may see revamps, with a stronger emphasis on welfare and promoting investment within the country. Some schemes are also anticipated to be extended beyond their current deadlines.
This year is unique with the presence of two Budgets. 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.
During VP Singh's tenure as Finance Minister, the 1986 Budget introduced pioneering initiatives aimed at bolstering economic inclusivity. Key proposals included subsidies on bank loans for rickshaw pullers and cobblers, the establishment of a Small Industries Development Bank, and an accident insurance scheme for municipal sweepers.
In the budget of 1950-53, the government formally announced the initiation of the Planning Commission. This primary body, headed by the Prime Minister, was entrusted with the responsibility of directing a well-defined program for the country’s development.
T.T. Krishnamachari, an enthusiastic industrialist who succeeded C.D. Deshmukh made significant contributions to India's taxation system. In 1957, he introduced two new levies:
- Wealth Tax
- Expenditure Tax
Krishnamachari urged taxpayers to display patriotic spirit in paying these taxes. Additionally, during his tenure as finance minister in 1964-65, he introduced the voluntary disclosure of concealed income schemes in India for the first time.
Jawaharlal Nehru was the first Prime Minister to present the budget, doing so while holding the union finance minister portfolio in 1958-59.
In his 1986 Budget, Finance Minister VP Singh proposed several social welfare measures, including:
- Subsidized bank loans for railway porters, rickshaw pullers, and cobblers
- The establishment of a Small Industries Development Bank
- An accident insurance scheme for municipal sweepers
Prominent figures like Jawaharlal Nehru, Indira Gandhi, and Rajiv Gandhi have presented the budget while serving as Prime Minister of India. Notably, Rajiv Gandhi introduced the corporate tax, now known as Minimum Alternate Tax, in the 1987 Budget.
Finance Minister Sitharaman emphasized India's impressive growth trajectory in recent years despite global challenges. She expressed optimism about the country's economic outlook for the coming years.
She called on government departments to vigorously pursue the NDA government’s development agenda, ensuring responsive policymaking to realize the Prime Minister’s vision of a ‘Viksit Bharat’ (Developed India).
Additionally, she reiterated the government’s commitment to the principle of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas’ (Together with All, Development for All, Trust of All, Efforts of All), seeking the continued support and cooperation of all stakeholders to build a strong and vibrant economy.
India’s economy is expected to grow at a 'robust' 8% 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.
“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%.
The red colour associated with the Budget briefcases came from the British era. In 1860, British Chancellor Gladstone introduced a red leather-covered briefcase with the Queen's monogram, known as the Gladstone Box. The color red, chosen for its prominence on the arms of the House of Saxe-Coburg-Gotha, became a tradition for budget presentations.
That’s one story behind the colour red. Another story suggests Queen Elizabeth I's representative presented a red briefcase filled with black puddings to the Spanish ambassador in the late 16th century, initiating the red colour tradition.
Apart from historical ties, red is believed to attract attention, making it a suitable choice for such a significant announcement.
Before 2024, an interim budget was presented by then Finance Minister Piyush Goyal in 2019 who tabled the Budget speech comprising of 8,119 words. Before this, P Chidambaram presented the interim budget in February 2014, Jaswant Singh in February 2004, and Yashwant Sinha in March 1998.
In the budget of 1950-53, the government formally announced the initiation of the Planning Commission. It is the primary body, headed by the Prime Minister, and entrusted with the responsibility of directing a well-defined program for the country’s development.
India’s wholesale price index (WPI)-based inflation accelerated for the third consecutive month to 2.61 percent in May, primarily 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.
After taking charge as the finance minister of India, Nirmala Sitharam said that the NDA government will continue to push the reforms drive initiated after 2014 with an eye on bolstering India’s macroeconomic stability and growth. She said that the government is fully committed to ensuring ‘Ease of Living’ for its citizens and will continue to take further steps in this regard.
FM Sitharaman highlighted India’s commendable growth story in recent years amidst global challenges and noted that there is an optimistic economic outlook for the coming years.
She urged the departments to advance the NDA government’s development agenda with renewed vigour and ensure responsive policymaking to achieve the Prime Minister’s vision of a ‘Viksit Bharat’.
She further said that the government believes in ‘Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas’ and called for the continued support and cooperation of all stakeholders, to ensure a strong and vibrant economy.
Financial Express learns that the Budget is likely to be presented in Parliament in the week of July 15-21. Existing schemes may be revamped with greater focus on welfare and promoting investment in the country. Some of the schemes are expected to be extended beyond the current date decided.
There is no clarity on the exact date of the Budget so far. All eyes are on the Parliament session that's set to kickstart next week. There are suggestions in some quarters where the Budget Session can be divided into two parts with the Budget Presentation in the latter half of the session.
This year incidentally there are two Budgets. The Budget presented in February 1 was more in keeping with the tradition and more of a vote on account by the Government in power ahead of elections. Typically once the Government is sworn in the full Budget is presented. It is likely to be in mid-July this year. The fact that the same BJP-led NDA Government has come to power has led to many thinking that Policies may not see huge shift. Most hint at Policy continuity.
According to Sources. Financial Express learns that 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 Union Budget for FY25 is likely to be presented to the newly formed 18th Lok Sabha in July. Meanwhile, the first session of the 18th Lok Sabha will begin on June 24 during which new members of the Lower House will take oath and the Speaker will be elected.
President Droupadi Murmu will address a joint sitting of the Lok Sabha and the Rajya Sabha on June 27 and is likely to outline the new government’s roadmap for the next five years. The session will conclude on July 3.
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 presentation of the Budget in July.
The finance minister had presented an interim budget on February 1.
Finance Minister Nirmala Sitharaman may table the Union Budget in Parliament in the third week of July, sources told CNBC-TV18.
The official announcement of the date of the Budget presentation is yet to be announced.
In his 1986 Budget, the then Finance Minister VP Singh proposed railway porters, bank loans with a subsidy for rickshaw pullers, cobblers and setting up of a small industries development bank, an accident insurance scheme for municipal sweepers.
Jawaharlal Lal Nehru, Indira Gandhi and Rajiv Gandhi have presented the budget while serving as the Prime Minister of India. Corporate tax (today known as Minimum Alternate Tax) was first introduced by Rajiv Gandhi in the 1987 Budget.
TT Krishnamachari, who succeeded CD Deshmukh, was an industrialist who had a lot of enthusiasm for taxation. In 1957, he created two new levies, a wealth tax and an expenditure tax, and sternly told those who had to pay these to display some patriotic spirit. Krishnamachari as the finance minister during 1964-65 introduced the voluntary disclosure of concealed income schemes in India for the first time.
Jawaharlal Lal Nehru was the first prime minister to present the budget when he held the union finance minister portfolio in 1958-59.
The election for Lok Sabha Speaker post is scheduled to take place on June 26 as announced by Lok Sabha in an official statement. The statement said, “In pursuance of sub-rule (1) of Rule 7 of the Rules of Procedure and conduct of Business in Lok Sabha, the President has been pleased to fix Wednesday, the 26th June, 2024, for holding the election to the office of speaker, Lok Sabha.”
At the beginning of the year, the finance minister presented an interim budget on February 1. This interim budget 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.
There is no official announcement on when the Union Budget 2024 will be presented by Finance Minister Nirmala Sitharaman in the Parliament. However, it is expected that she will present it in the month of July.
The evolution of budget presentation in India has been fascinating, transitioning from a briefcase to a bahi khata, and now to a tablet. In 2019, Finance Minister Nirmala Sitharaman gave the budget a traditional touch by replacing the old briefcase with a red-colored bahi khata. This was during her first Budget presentation. Later, the Union Budget for 2021-22 was presented digitally by Finance Minister Nirmala Sitharaman on a tablet.
Until 1955, the Union Budget was printed exclusively in English. However, starting with the 1955-56 budget, it began to be presented in both English and Hindi, an initiative led by the then Finance Minister, C.D. Deshmukh.
During her press conference, the Finance Minister spotlighted significant announcements outlined in the Interim Budget:
– Expansion of PM AWAS Yojana to accommodate an additional 2 crore homes.
– Initiative for housing aimed at the middle class.
– Introduction of rooftop solar power generation for at least 300 units.
– Augmentation of the target for Lakhpati Didi.
– Empowerment and preparation of MSMEs for global growth and competition.
– Special focus on the Eastern region, including Bihar, Odisha, Jharkhand, West Bengal, and Chhattisgarh.
– Commitment to implementing next-generation reforms.
– Development of three major railway corridors, with an addition of 40,000 coaches to match the standards of Vande Bharat.
– Emphasis on urbanization, particularly through metro projects and the NaMo Bharat initiative.
– Allocation of a corpus of Rs. 1 lakh crore for Research and Innovation.
– Stimulus to boost tourism.
In the interim Budget released on February 1, the corporate tax rate for existing companies has been reduced from 30% to 22%. Additionally, a special reduced rate of 15% has been introduced for certain new manufacturing industries.
These expenses cover the operational costs of running government departments and services. They include paying salaries and pensions, covering administrative costs, paying interest on debt, and providing subsidies. However, these expenditures do not result in the creation of assets.
Thirty crore Mudra Yojana loans have been disbursed to women entrepreneurs. Female enrollment in higher education has increased by 28 percent over the past decade. Women now constitute 43 percent of students in STEM courses. Additionally, one crore women have been empowered to become Lakhpati Didis through the support of 83 lakh Self-Help Groups (SHGs).