Budget 2024 Expectations Highlights: FM Sitharaman to prioritise youth, women, farmers, underprivileged in line with PM Modi's vision

Budget 2024 Expectations Highlights: FM Sitharaman to prioritise youth, women, farmers, underprivileged in line with PM Modi’s vision

Interim Budget 2024 Expectations Highlights: Union Finance Minister Nirmala Sitharaman has indicated that the upcoming interim Budget will prioritise youth, women, farmers, and the poor. This focus aligns with Prime Minister Narendra Modi’s recent statement on target groups. FM Sitharaman emphasised the government’s pledge to the betterment of these four groups, aiming to uplift the youth, support women, enhance food security for farmers, and provide additional assistance to the underprivileged. The FM highlighted the government’s efforts in skilling, improving agricultural tools, and ensuring the availability of healthcare and benefits across various categories. FM Sitharaman is poised to present the budget for the fiscal year 2024-25 on February 1, marking the final annual financial statement of the Modi government’s second term. This upcoming budget is categorised as an ‘interim’ one, given the Lok Sabha elections scheduled for April-May this year. The full budget is expected to be presented in July by the incoming government, whether it be a re-elected or new administration.

22:45:20 IST

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22:02:35 IST

Budget 2024 Expectations Live Updates: Delhi FM to present city’s budget on Feb 17

The Kejriwal government will deliver its tenth budget during the Delhi Assembly’s budget session on February 15-20, with an emphasis on health, education, roads, and infrastructure, officials announced on Friday. According to an official statement, Delhi Finance Minister Atishi is slated to present the city government’s 2024-25 budget on February 17.

20:13:18 IST

Budget 2024 Expectations Live Updates: Renewable energy could add momentum to power stocks

Although the upcoming budget is an interim one, it is expected to lay the groundwork for future policy decisions. Most brokerages anticipate a focus on fiscal consolidation and priorities regarding capital and non-capital expenditure.

“We anticipate the policy direction and priorities to align closely with recent budgets, as the government navigates between fostering growth recovery and managing challenging debt dynamics,” Elara Capital said in a recent report.

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17:49:25 IST

Budget 2024 Expectations Live Updates: Will the PSU rally continue post-budget?

–Shares of public sector undertakings (PSUs) have seen a stupendous rally in the five years that the Bharatiya Janata Party (BJP)-led National Democratic Alliance government has been in power, with persistent capex in growth verticals such as railways, infrastructure, power and defence.

–This rally across the PSU pack will in the immediate future be determined by the upcoming interim Budget, given the government’s capex allocation for each pocket, said analysts.

–However, they warned investors to exercise caution while putting their money in these state-controlled entities as valuations in some stocks look overheated compared with their private peers. In the past one year, one out of every three PSU stock has more than doubled, helping the BSE PSU Index surge over 65 percent.

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13:20:41 IST

Budget 2024 Expectations Live Updates: Pre-budget avoid aggressive directional strategies, says Chavan of Angel One

Sameet Chavan, head research – technical and derivatives, at Angel One, analyses pre-budget positioning:

Derivative activity indicates that the ongoing correction can be primarily attributed to long unwinding. Particularly noteworthy is the significant increase in bearish bets in the banking index, with open interest surging by more than 40 percent over the same timeframe. A substantial addition of short positions in the Bank Nifty for the upcoming series potentially reflects a strategic move ahead of the budget announcement.

11:18:13 IST

Budget 2024 Expectations Live Updates | Food industry wants infrastructural Boost, increased consumer spending to boost FMCG sector

The food industry has urged the government to concentrate on two critical areas in the interim Budget. First, there is a call for increased government investment in infrastructure. Secondly, the focus is on enhancing consumer demand by injecting more money into consumers’ hands. The FMCG sector, particularly the slump in rural demand, is a key concern, and there is a request for additional funds to be allocated to infrastructure, rural initiatives, and the agricultural sector to stimulate demand.

In addition, the finance ministry might consider boosting consumer spending by potentially lowering taxes or raising tax slabs. Furthermore, there is a recommendation for the government to provide incentives to businesses offering healthier options to consumers, aligning with the Center’s initiative to promote millets. These proposals aim to address economic challenges and foster healthier consumer choices.

11:01:24 IST

Budget 2024 Expectations Live Updates | Insurance industry’s wishlist: Anticipating changes and advocating for tax parity in retirement solutions

As the nation eagerly awaits the interim Budget, the insurance industry is looking forward to potential changes that could impact the financial landscape. One of the key expectations from the insurance sector is achieving tax parity for retirement solutions, especially pension and annuity plans.

Prashant Tripathy, MD and CEO of Max Life Insurance, told CNBC TV 18 that extending the Rs 50,000 tax exemption currently applicable to the National Pension Scheme (NPS) to these plans in a bid to encourage investments and create a more level playing field for similar products, ultimately enhancing social security for taxpayers.

Addressing the concern of insufficient insurance coverage for families in the event of the primary earner’s death, there is a proposal for a separate tax deduction for term life insurance. Tripathy has suggested implementing this measure under both the old and new tax regimes.

10:07:12 IST

Budget 2024 Expectations Live Updates | 50% of India Inc confident of achieving over 6.5% growth in FY25

According to a CXO survey conducted by Deloitte Touche Tohmatsu India LLP, business leaders in India are confident in achieving a $5 trillion economy with the support of the Centre’s investments in infrastructure, additional reforms, and increased technology adoption. The survey found that around 50 percent of India Inc expresses confidence in the country achieving over 6.5 percent growth in FY25, indicating optimism about strong economic growth in the next fiscal year.

Various industry sectors, including automotive, consumers and retail, technology, media, and telecommunications, and energy, resources, and industrials, expect high growth. The positive outlook is attributed to government initiatives, enhanced trade collaborations, reduced logistics costs, and policies promoting industrial production and sustainable technologies.

09:52:25 IST

Budget 2024 Expectations Live Updates | FM may hike healthcare spending with stress on insurance, Ayushman Bharat

The government has shown a focus on healthcare in recent years, with initiatives like the Ayushman Bharat scheme and various health-related schemes. Experts say that the upcoming budget is expected to continue emphasising the healthcare sector, with increased spending anticipated, especially in areas like health insurance and Ayushman Bharat.

It is considered crucial to increase spending in healthcare, given that the current allocation is only about 2.1 percent of GDP, lower than in developed countries.

09:38:54 IST

Budget 2024 Expectations Live Updates | Commerce ministry backs calls for import tariff cut on gold bars to tackle industry challenges

The commerce ministry has reportedly expressed support for a longstanding request from the jewellery industry to reduce import tariffs on gold bars. This move is seen as an effort to address challenges faced by India’s struggling jewellery exports, with concerns that existing duties are contributing to these difficulties.

The ministry’s endorsement for a tariff cut comes ahead of the upcoming interim budget scheduled for the next week. If okayed, Finance Minister Nirmala Sitharaman may announce the decision in her interim Budget on February 1.

The Gems and Jewellery Export Promotion Council (GJEPC) has specifically urged the finance ministry to cut import tariffs on all types of gold to 5 percent from the current 15 percent. Additionally, they have called for a reduction in customs duties on cut and polished diamonds, aiming to alleviate costs for the country’s jewellers.

09:09:31 IST

Budget 2024 Expectations Live Updates | Charting Fiscal Course: Budget poised to leverage strong growth for fiscal consolidation

The interim budget for 2024 is set to be presented amid a backdrop of robust economic growth, with a projected GDP growth of 7.3 percent in the current fiscal year. Economists suggest that this strong momentum will provide the government with the opportunity to focus on fiscal consolidation.

Projections indicate that the central government’s net tax revenue is expected to surpass budget estimates by Rs 80,000 crore in the current fiscal year. Similarly, non-tax revenue is also likely to cross budget estimates by Rs 50,000 crore. Expenditure is likely to exceed budget estimates by nearly Rs 60,000 crore.

Soumya Kanti Ghosh, Group Chief Economic Adviser at the State Bank of India, expects that gross tax revenue at 11.6 percent of GDP in FY24 is poised to reach a 16-year high. Looking ahead to FY25, he expects gross tax revenue to be the highest in the last two decades. These projections suggest positive economic trends that may shape the fiscal policies and priorities in the upcoming Budget.

08:48:33 IST

Budget 2024 Expectations Live Updates: A quick recap of Interim Budget 2019

The last interim budget was presented in 2019 by then finance minister Piyush Goyal. While interim budgets typically do not introduce major policy changes, there were five notable announcements made in Interim Budget 2019:

Income tax relief for middle class: The interim budget proposed significant income tax relief for the middle class by doubling the income tax exemption limit from Rs 2.5 lakh to Rs 5 lakh.

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme: The budget introduced the PM-KISAN scheme, aiming to provide direct income support to small and marginal farmers.

Standard deduction for salaried: The standard deduction for salaried employees was increased from Rs 40,000 to Rs 50,000, offering additional tax relief to the salaried class.

Hike in gratuity limit: The gratuity limit, representing the maximum amount payable as gratuity to an employee, was doubled from Rs 10 lakh to Rs 20 lakh.

Pradhan Mantri Shram Yogi Maandhan Scheme: The Pradhan Mantri Shram Yogi Maandhan scheme was introduced, providing a pension of Rs 3,000 per month for workers in the unorganised sector after the age of 60.