Budget 2024 Highlights: What can salaried taxpayers expect from upcoming Union Budget?

As stated by Dinesh Chandra Pandey, Managing Director of Shankar Fenestration Glasses, the Union Budget of 2024 offers an important opportunity to advance the manufacturing industry through targeted policy measures. Focusing on technological innovation, especially in the areas of artificial intelligence and the Internet of Things, will be crucial for raising productivity and competitiveness globally.

“Development of the infrastructure, particularly in the transportation sector, is another important area that needs focus. Increasing the effectiveness of the supply chain by means of improved transportation networks will simplify processes, cut costs, and increase competitiveness overall. Initiatives for skill development that are supported by strong industry-academia partnerships are equally important,” Pandey said.

He further added that a more favorable environment for manufacturing growth will be produced by lowering operating costs through targeted policies.

In order to advance reforms in the banking industry, the government is likely to introduce amendments to Banking Regulation Act 1949 and other laws during the upcoming Budget Session. Apart from this, amendments in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 are needed for privatisation of public sector banks.

The tradition of presenting the Union Budget at 5:00 pm continued under successive Indian governments. However, in a historic move, the then Union Finance Minister changed the timing to 11:00 am. This change was made for two reasons: to end a colonial-era practice and to provide MPs and officials with more time to understand and debate the budgetary announcements.

India’s inflation trend from 2000-2024.

Industrial production grows 5.9% in May against 5.7% expansion a year ago, reveals government data.

Retail inflation rises to 5.08 per cent in June against 4.8 per cent in May, shows government data.

Up until 1999, the Union Budget was traditionally presented in Parliament at 5:00 pm. This practice had been in place since the colonial era. It is believed that the British government chose the 5:00 pm time slot to allow budget announcements to be made simultaneously in both India and London. Read more.

Gaurav Malhotra, Managing Director, Hansgrohe India says, “Ahead of the interim budget, we are optimistic about the positive measures that will bolster the luxury real estate sector and enhance the overall market dynamics. This aligns with the growing aspirations towards a luxury lifestyle, where consumers seek high-quality, sophisticated home interior solutions. We urge the government to put a rationalization on GST and reduce home loan interest to stimulate demand and growth for the luxury real estate sector.

Additionally, we hope to see initiatives aimed at boosting local manufacturing capacity that can further strengthen the make-in-India initiative and also increase the availability of world-class products in the domestic market.

These strategic reforms will collectively contribute to the growth of our industry and enable us to continue delivering innovative solutions that can meet the high standards of luxury and cater to the individuals who are aspiring to live a luxury lifestyle.”

Sat Kumar Tomer, Founder & CEO, Satyukt Analytics says, “We advocate for real-time integration into agricultural delivery, farm-scale credit assessments, and crop insurance. Promoting precision agriculture, particularly in water optimization and crop advisories, and incentivizing agri-tech startups to collaborate with institutions like KVKs, will drive sustainable growth.

We support policies that encourage ag-tech startups to run awareness programs for best practices and emphasize digital literacy and R&D to create user-friendly agritech solutions tailored to farmers’ needs.”

Industry leaders of the diagnostics are expecting government to implement zero-rating GST on healthcare services. According to the industry leaders, funding large-scale studies on rare diseases, integrating prenatal genetic testing into maternity benefits, and raising awareness about rare disorders and available support for patients and their families is crucial. Read more.

The Congress listed several questions to the Finance Minister Nirmala Sitharaman ahead of the Budget. Some are:

-Why is private investment, a key engine of economic growth, still so very sluggish recording a 20-year low during April-June 2024?

-Why is private consumption, another key engine of economic growth, not picking up except at the high end?

-Why have household savings plummeted to record lows and household debt shot up to record highs?

Sanyam Jain, Founder and Chief Operations Director of Thermowaste Solutions said, “The Swachh Bharat mission, spearheaded by Prime Minister Narendra Modi, aims to revolutionize India’s recycling sector. The NDA government has implemented key policy changes to support this initiative. Union Government, state governments, and local civic bodies have committed budgets to enhance the country’s sustainable infrastructure. I am confident that this budget will further boost India’s waste management sector. A key expectation is for the Union Government to allocate funds for the newly introduced “Green Credit Program.”

This initiative aims to provide financial incentives to environmental programs across sectors, motivating greater participation in sustainable activities by individuals and companies. Enhancing the Extended Producer Responsibility Portal through budget allocations and action plans will streamline the EPR market, crucially supporting plastic recyclers nationwide. The plastic recycling industry has consistently sought reduced indirect taxes on plastic waste and recycled products. We hope this budget will address these demands effectively.”

The halwa ceremony is a notable event that also signals the start of a lockdown at the finance ministry. During this period, no officials are permitted to leave the ministry compound. Members of the Budget team can only leave after the financial document is presented in Parliament. Since 1980, the printing of the Union Budget in the basement of the North Block has been a permanent feature. Read more.

‘The halwa ceremony’ event features the preparation of an Indian sweet dish in a large ‘kadhai’ at the North Block. The finance minister stirs the ‘kadhai,’ and the halwa is served to everyone. This tradition also recognizes the hard work of all the finance ministry officials. The halwa ceremony marks the beginning of the printing process for all the budget documents before their presentation in Parliament. Read more.

Jyoti Prakash Gadia, Managing Director at Resurgent India, said, “Since this is going to be the first budget of the new dispensation in the form of a collision government, we can expect a tilt towards rural economy and social welfare and employment generation as against any far-reaching economic reforms. At the same time, the large amount of surplus transfer of Rs 2.11 lakh crore by RBI to the government shall help in controlling the deficit while providing extra funds for the focus areas.

The incentives and subsidies for agricultural inputs are likely to be increased. In addition, a groundwork on a long-term policy for the crucial ‘Minimum Support Price ‘ for all major crops is also expected to be announced to win back the vote bank of the farmers on a sustainable basis.

The flagship emphasis on infrastructure projects is likely to be continued as a part of robust strategy for economic development. As per the global commitments under the Paris Agreement, the renewable energy sector is to be given a continuous focus, both from the generation point of view and also to promote ‘Make in India‘ and we can expect suitable tweaking of the customs duty, and other incentives over the mid-term.

No personal income tax changes are expected to be announced across the board at this stage, although senior citizens and pensioners may get some relief .

The government will need to exhibit its intent towards employment generation and the MSME sector may therefore get some special tax benefits and schemes for concrete development of this sector, which will also help in boosting exports.

Bank mergers and government stake sales in public sector banks, although under discussion in the past, may also find a reference in the budget which is overall expected to be a pragmatic exercise.”

Atul Puri, Managing Partner and Co-Founder at SW India on expectations from Income Tax in the Union Budget 2024.

“This budget should focus on a few long drawn expectations of the industry which is ‘make in India’ and ‘ease of doing business in India’. The first step towards achieving the expectations of the industry will be where the new investments are encouraged and businesses are not penalised for non compliances to law without any mala fide intent. We, as a partner of building the nation’ expect that the time limit for starting a new manufacturing company in India should be increased to 31st March, 2025 or for a further period of time instead of existing 31st March, 2024 for the purpose of availing the benefit of reduced rate of 15% for new manufacturing companies. Further, the provisions related to prosecution on default in payment of TDS should be liberalised,” Puri said.

Congress president Mallikarjun Kharge criticised Prime Minister Narendra Modi for prioritizing PR over addressing core issues. Kharge highlighted rising unemployment, inflation, and economic inequality under Modi’s tenure, pointing out failures in job creation, farmer income promises, and privatization impacts.

He emphasized a decline in manufacturing and private investments, attributing economic instability to government policies.

Under PM-KISAN, eligible farmers receive a direct income support of Rs. 6,000 per year in three equal installments. This amount is crucial in helping farmers meet their agricultural expenses, purchase necessary inputs, and manage household needs. Know eligibility and exclusion criteria of this central scheme.

The Pradhan Mantri Kisan Samman Nidhi Yojana (PM-Kisan Yojana) is a government initiative aimed at providing financial support to small and marginal farmers across India. It promises to deliver a minimum income support of Rs 6,000 per year to eligible farmer families, irrespective of the size of their landholding. Read more.

Capt Ishver Dholakiya, Founder and MD, Goldi Solar on Budget.

“With climate change as one of the key global concern, we believe the green energy charter will be on priority in the upcoming union budget 2024 as India currently at 150 GW has set an ambitious target of achieving a renewable energy capacity of 500 GW by 2030. Further, with a focus on ‘Make in India’, and improving ease of doing business, India has become one of the preferred destinations for global companies and is on the road to becoming the third third-largest economy in the world with a GDP of $5 trillion making green energy a top focus to achieve its Net Zero goals. PM Narendra Modi‘s recent address in Russia underlined India’s commitment to renewable energy.

In fact, the Government’s focus has been clear with the recent progressive policy and regulatory reforms such as ALMM, PLI scheme, PM Surya Ghar, PM Suryoday Yojana and more.
To further shape the renewable energy sector, the government must focus on large-scale investments in domestic solar panel and component manufacturing facilities. This will not only shorten supply chains and reduce dependency on imports, but also create a cost-competitive advantage. Introducing new skill development programs, incentives, funding, import duties, subsidies, and crafting favourable policies that can boost R&D and innovation will further bolster the sector.

We also recommend allocating the unutilized PLI funds towards smaller companies that meet specified criteria to support their entry into module and component manufacturing. This strategic distribution is crucial for boosting the capabilities of MSMEs in the renewable energy sector. Apart from this, budgetary allocations should address the growing need for support towards energy storage projects.”

Abhishek Aggarwal, Chief Business Officer, Birla Fertility & IVF, said, “In recent years, there has been an increased focus on healthcare, and government initiatives like Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PM-JAY) and the National Health Mission have helped connect millions of people to essential health services and insurance. However, given the size of our country, this requires more impetus, particularly through increased public-private partnerships. In the infertility space, we hope to see a greater focus from the government. While India has the world’s largest population, falling fertility rates will have an impact in the next 25-30 years.

Research Report published by The Lancet suggests that India’s total fertility rate (TFR) is irreversibly plunging to 1.29, and by 2050, one in five Indians will be a senior citizen. The predictive scenario is alarming. We must not overlook the data and repeat the same oversights made by developed countries. Including fertility and IVF treatment under insurance coverage can make affordable healthcare a reality for all, bringing joy to many couples longing for parenthood. It will help build healthy families and secure the future of the nation.”

Karthik Srinivasan, Chief Business Officer, at HDB Financial Services, an HDFC Bank subsidiary, said, “There is an increasing demand for financial products in rural markets, fueled by the penetration of the internet and an entrepreneurial mindset. Government schemes like Pradhan Mantri Jan Dhan Yojana (PMJDY), Mudra Yojana, and Stand-Up India have created a backbone for NBFCs in these markets. In this digital-first world, technology has played a key role in driving the growth of NBFCs. By bolstering technological capabilities, NBFCs are uniquely positioned to serve the unbanked and underserved segments of our population.

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”.

Here’s some of the takeaways from the interim Budget that was presented on February 1 by Sitharaman.

-Expand the PM Awas Yojana by 2 crore homes, focusing on the middle class.

-Implement rooftop solar power generation.

-Increase beneficiary targets under Lakhpati Didi scheme.

-Strengthen MSMEs.

-Prioritize development in Eastern states like Bihar, Odisha, Jharkhand, West Bengal, and Chhattisgarh.

-Introduce next-generation economic reforms.

-Develop three major railway corridors and upgrade 40,000 coaches to Vande Bharat standards.

-Enhance urbanization efforts including metro expansions and the NaMo Bharat initiative.

-Allocattion of Rs 1 lakh crore fund for Research and Innovation.

-Promote tourism through strategic initiatives.

India is expected to make substantial investments in modernizing its armed forces, prioritizing the acquisition of cutting-edge equipment and technology. This initiative encompasses advanced fighter jets, UAVs, submarines, missile systems, and cyber warfare capabilities. Enhancing strategic alliances with nations such as the United States, Japan, and Australia, particularly through collaborative efforts like the Quad, will play a pivotal role in fortifying India’s defence capabilities and posture on the global stage. Read more.

Nitin Aggarwal, CEO, TVS Infrastructure Investment Manager Private Limited, said, “As India‘s industrial and logistics warehousing sector stands poised for transformative growth in the economic landscape, the upcoming budget holds significant promise for further accelerating this momentum. We look forward to budgetary provisions that bolster the sector’s infrastructure, streamline regulatory processes, and incentivize technological advancements in warehousing facilities.”

“We advocate for incentives, including MSME status for the industrial real estate sector, and seek budgetary relaxations in tax rates and norms, including the crucial allowance of input tax credit under GST. Uniform land acquisition norms across states and simplified warehousing compliance processes would further catalyse the sector’s growth. We look forward to a budget that paves the way for a resilient, sustainable, and globally competitive warehousing ecosystem in India,” he added.

The Union Budget 2024-25 will be presented on July 23 by Union Finance Minister Nirmala Sitharaman in the Lok Sabha. She had also presented the interim Budget in February this year, which was done in view of the Lok Sabha elections.

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