Budget 2024 Expectations Live Updates: Main forecasts, sector-specific expectations from FM Sitharaman, and more insights

Budget 2024 Expectations Live Updates: Main forecasts, sector-specific expectations from FM Sitharaman, and more insights

Interim Budget 2024 Expectations: Finance Minister Nirmala Sitharaman is set to present the interim Budget for the fiscal year 2024-25 in the Lok Sabha on February 1. The need for this interim Budget arises due to the imminent Lok Sabha elections early next year. The comprehensive Budget for the financial year 2024-25 will be revealed once the new government is established following the general elections.

07:09:21 IST

Union Budget 2024 Expectations Live Updates: Key parameters to watch

The budget is composed of three elements on the revenue side: tax revenue, non-tax revenue (such as dividends and interests), and disinvestments.

• It is essential to evaluate the credibility of tax revenue projections by comparing them to nominal GDP figures.
• Nominal GDP signifies the overall value of all goods and services produced within a specific timeframe, usually on a quarterly or annual basis.
• In contrast, real GDP adjusts nominal GDP for inflation, offering a gauge of genuine production growth without the distorting effects of inflation.
• The expected nominal GDP growth for FY24 is approximately 8.9 percent. Utilizing this figure, one can estimate the nominal GDP for the fiscal year and then compute the anticipated tax revenue, typically comprising about 10-11 percent of nominal GDP, as India’s tax-to-GDP ratio generally falls within that range.