Budget 2024 Expectations LIVE: Key agendas lined up, Budget 2023 playback and more

Budget 2024 Expectations LIVE: Key agendas lined up, Budget 2023 playback and more

Interim Budget 2024 Expectations: Parliamentary Affairs Minister Pralhad Joshi announced on January 12 that the final Budget session of the 17th Lok Sabha, spanning from January 31 to February 9, is imminent. The interim budget for the financial year 2024-25 will be delivered by Finance Minister Nirmala Sitharaman on February 1, given that it is an election year. Following the Lok Sabha elections, the new government is anticipated to present the complete budget in July. The Union budget, a crucial event in the financial calendar, triggers extensive speculation about government spending, fiscal deficit, and individual taxation.

14:30:17 IST

Budget 2024 Expectations Live Updates: Ease of doing business to be a key focus

– The upcoming Budget for 2024-25 is anticipated to emphasise the facilitation of business operations, with potential actions such as the decriminalization of specific offenses and adjustments to labor laws.

– Preliminary inter-ministerial deliberations and consultations with stakeholders have already taken place, according to sources.

– Given India’s substantial workforce, prioritizing the ease of doing business is crucial.

– Several steps must be taken to simplify business processes, including procedural enhancements, tax reforms, and modifications to labor laws. It’s noteworthy that a significant portion, 68.2 percent, of criminal provisions is associated with labor laws. Learn more.

14:11:13 IST

Budget 2024 Expectations Live Updates: Direct cash transfers a hit

– Over the past decade, the agricultural output of the country has experienced significant growth, soaring from 129.32 million tonnes in FY14 to 330.5 million tonnes in FY23.

– Concurrently, agricultural exports reached a historic high, totaling $50 billion in value during FY23, compared to $37.29 billion in FY14.

– During this period, the budget allocation for the agricultural sector witnessed a fivefold increase, escalating from Rs 22,652 crore in FY15 to Rs 1.15 lakh crore in FY24.

– Various schemes, including the PM Kisan Samman Nidhi introduced in 2019, which provides farmers with up to Rs 6,000 per year as minimum income support through direct benefit transfers, along with crop insurance and interest subvention schemes, have been widely acknowledged for contributing to the growth of farmer incomes.

13:39:17 IST

Budget 2024 Expectations Live Updates: Staffing firms expect tax relief, 9% PF interest rate

– Staffing firms in India are looking forward to potential tax benefits and an increase in interest rates on provident fund accounts as Finance Minister Nirmala Sitharaman unveils the interim budget on February 1.

– Additionally, recruiters are hopeful for allocations aimed at improving employability, emphasising the importance of investments in training programs and collaborative efforts between the government and private sector for skill development.

– Experts also endorse the idea of raising limits on deductions under Sections 80C (investments), 80D (medical insurance), and house rent allowance to stimulate disposable incomes and promote prudent financial planning. Know more.

12:49:11 IST

Budget 2024 Expectations Live Updates: FM Sitharaman’s ‘Saptarishi’ fiscal strategy

– During the presentation of the Budget 2023-24 on February 1, 2023, FM Sitharaman introduced a fiscal strategy centered around seven interlinked priorities collectively known as the ‘Saptarishi’.

– These priorities encompass Inclusive Development (emphasising fair and balanced growth), Reaching the Last Mile (expanding essential services to remote areas), Infrastructure and Investment (stimulating economic growth), Unleashing the Potential (eliminating obstacles to individual and collective progress), Green Growth (advocating sustainability), Youth Power (capturing the vitality of the youth), and Financial Sector (ensuring stability). Learn more.

12:13:52 IST

Budget 2024 Expectations Live Updates: Markets and past Modi Budgets

– The most substantial gains in the three months following the budget were recorded in 2017 and 2019, with increases of 6.3 percent.

– In 2014, 2016, and 2023, they rose by about 3 percent each.

– The indices witnessed an almost 12 percent increase in the three months leading up to the first budget of the Modi government in July 2014.

– However, the most significant gains before the budget were observed in 2021, with the Sensex and Nifty advancing approximately 21 percent as the economy recovered from the Covid aftermath, and the markets anticipated strong government support.

– In 2015, 2017, 2018, and 2019, single-digit returns ranging from 2.3 percent to 6.6 percent were observed before the budget.

– In 2016, three months before the budget, both the Sensex and the Nifty dropped 6.3 percent each.

– In 2020, 2022, and 2023, they declined by 1.1 percent to 1.9 percent.

12:05:27 IST

Budget 2024 Expectations Live Updates: Markets and past Modi Budgets

– Over the past 11 budgets under the Modi government, the BSE Sensex saw declines five times, and the Nifty dropped six times, while posting gains on other occasions.

– In three months prior to budget presentations, both benchmark indices fell five times out of 11 instances. Following the budget, the Sensex and Nifty declined over three months in five instances out of 11.

– During the interim budget on February 1, 2019, the Sensex and Nifty yielded only a 0.5% return. In the aftermath of the budget in 2020, the Sensex and Nifty plummeted over 20 percent due to pandemic restrictions.

– In 2015, both indices fell over 5 percent, and in 2019 and 2022, they dropped approximately 3 percent.

12:01:17 IST

Budget 2024 Expectations Live Updates: Markets and the Modi Budget

– Despite the elevated valuations, analysts believe that the upward momentum in the Indian stock markets is unlikely to subside before the interim budget next month, given the 1 percent decline observed in the initial seven sessions of 2024.

– The previous year saw substantial surges in the BSE Sensex and the NSE Nifty, reaching up to 20 percent, while mid-cap and small-cap indices experienced a remarkable 48 percent rise.

– This surge was fueled by strong sentiments preceding the elections, improving macroeconomic conditions, and expectations of interest rate cuts.

11:25:34 IST

Budget 2024 Expectations Live Updates: Key tax announcements made earlier by FM Sitharaman

– Regarding leave encashment, the government proposed a substantial increase in the tax exemption limit for non-government salaried employees upon retirement, raising it from Rs 3 lakh to Rs 25 lakh. The previous limit of Rs 3 lakh was established in 2002 during the Atal Bihari Vajpayee government.

– The rebate has also seen a modification, where individuals earning up to Rs 5 lakh are exempt from income tax in both old and new regimes.

– However, the Budget raised this limit to Rs 7 lakh in the new tax regime, simplifying the understanding that individuals with an income up to Rs 7 lakh are not liable to pay any tax.

11:06:23 IST

Budget 2024 Expectations Live Updates: Key tax announcements made earlier by FM Sitharaman

– The 2023 Budget speech by Finance Minister Nirmala Sitharaman unveiled new tax slabs, reducing the income slabs from six to five in the revised personal tax regime. The move appears to target the middle class, accompanied by an increase in the basic tax exemption limit from Rs 2.5 lakh to Rs 3 lakh.

– A significant change announced is that the new tax regime will now serve as the default tax regime, introduced in 2020.

– For the salaried class and pensioners, FM Sitharaman introduced a standard deduction under the new tax regime.

– In contrast, the old tax regime already provides a standard deduction of Rs 50,000 to salaried employees and pensioners. When combined with the rebate, those earning up to Rs 7.5 lakh in the new tax regime are exempt from paying any tax.

10:07:18 IST

Budget 2024 Expectations Live Updates: Direct tax collection to triple to Rs 19 lakh crore in 10 years under Modi government

– During Prime Minister Narendra Modi’s 10-year tenure, it is anticipated that personal income and corporate tax collections will surpass Rs 19 lakh crore. This increase in income tax collections is attributed to the escalating earnings of individuals.

– Reports indicate that net direct tax collections, adjusted for refunds, have surged from Rs 6.38 lakh crore in FY 2013-14 to Rs 16.61 lakh crore in FY 2022-23. Moreover, collections from net direct taxes, encompassing personal income tax and corporate tax, have exhibited a 20% growth in the current fiscal year.

– At this rate, the total collection is projected to reach approximately Rs 19 lakh crore by the conclusion of the fiscal year on March 31, 2024, surpassing the estimated Rs 18.23 lakh crore outlined in the 2023-24 Budget. Find out more on this.

09:21:22 IST

Budget 2024 Expectations Live Updates: Interim budget likely to be a non-event for banking industry

– India’s banking sector is not expected to witness substantial announcements pertaining to the industry in the forthcoming Union Budget.

– Many analysts believe that the government is unlikely to introduce new capital infusion in the budget, given the satisfactory capital position and the improving asset quality of banks.

– In recent years, there has been a noteworthy enhancement in the health of the Indian banking sector, evident in the significant improvements in both bad loans and capital adequacy. Read more.

09:16:53 IST

Budget 2024 Expectations Live Updates: Centre to lower budget gap by at least 50 bps

– The Centre intends to reduce its budget deficit by at least 50 basis points in the fiscal year 2024/25 compared to this year’s target of 5.9 percent of gross domestic product (GDP), according to a Reuters report.

– Simultaneously, officials are considering a potential increase in capital spending of up to 20 percent.

– The government aims to increase its capital spending on infrastructure, seeking to raise it to a maximum of 12 trillion rupees ($144.59 billion) from the current year’s planned 10 trillion rupees.

– In recent years, the government’s emphasis on boosting infrastructure expenditure has played a crucial role in propelling India into one of the world’s fastest-growing economies, even in the face of high inflation dampening consumption in the nation.