Budget 2024 Expectations Highlights: With general elections looming, how will Interim Budget shape the fiscal landscape for the year ahead?

Ajath Anjanappa, CEO & Co-founder, Fabits:

“As the buzz around the Interim Union Budget 2024 heightens, the fintech space is brimming in anticipation of measures like ease of business, tax incentives, continued government support for technological advancements, and compliance simplification. In the quest for making financial planning and wealth management simple and accessible for the users, we at Fabits think the government’s stance on digitisation and compliance relaxations could be of utmost significance.

This interim budget could be a crucial insight into the upcoming government’s economic policies. Besides the key themes being discussed by experts, here’s how I think fintech, and personal finance and investments in general, may be shaped by this interim budget –

Democratisation of taxes: The introduction of new slabs and wealth taxes will ensure a more progressive and inclusive tax structure. A revision in the income tax slabs can simplify the taxation structure for individuals and an increase in the basic exemption limit will reduce overall tax burden on lower-income individuals, making more room for investments.

Incentives for Clean Energy Investors: Investors can expect to be rewarded through tax exemptions for investments in renewable energy and sustainable practices.

Increased government spends on Defence budget: Due to rise of geopolitical tensions around the globe, the focus will strongly remain on defence with possible increased spends – the total allocation is expected to reach ₹6,35,085 crore (7% increase). Government initiatives are already bringing in these spends back into the economy through strategic partnerships (ex – HAL & GE partnership for knowledge sharing and defence manufacturing). The Nifty India Defence Index gave 91% returns in 2023, making this sector a hot property for investors

Increased government investments in Infrastructure: Government is also expected to prioritise rural and urban connectivity, railways, ports, aviation, and highways to make the bulk of population also contribute to the economy significantly with ease. Infrastructure-linked funds offered an average return of around 33.23% in the last three years. The Ministry of Road Transport and Highways has requested a budgetary allocation of Rs 3.25 lakh crore for FY 2024-25, marking a 25% YoY increase. Predict a 7% increase in CAGR between 2024-26.”

Akash Gupta, Co-Founder and CEO, Zypp Electric- Last Mile EV logistics :

Prioritizing the electric vehicle (EV) sector is crucial for a sustainable future. First, inclusion in the priority lending scheme will fuel growth by facilitating easier access to capital. To accelerate the adoption of EV-led delivery services, a reduction in GST for EV services from 18% to 5% is imperative. While EV purchases enjoy a 5% GST rate compared to 28% for internal combustion engine (ICE) vehicles, a similar distinction must extend to services. Furthermore, introducing usage-based incentives for EV drivers, in addition to existing FAME buyer incentives, will be a game-changer. Rewarding users based on carbon savings and kilometers driven creates a tangible incentive for sustainable choices.

Addressing the last-mile delivery gap is equally critical. Recognizing last-mile delivery as a distinct sector under logistics policies is essential, given that one-third of shipments fall within this category. Establishing industry standards, supporting gig delivery partners with tailored schemes, and implementing standard operating procedures (SOPs) will enhance efficiency and foster growth in this vital but often overlooked segment of the logistics industry.

Hello and welcome to our live blog where we will bring to you expert analysis and the wishlist from various sectors concerning the upcoming budget. Stay tuned with Financial Express Online here for further updates.