Only a few days remain before, Finance Minister Nirmala Sitharaman unveils her Union Budget 2024. A lot is expected of the government by a number of sectors when the FM presents the Union Budget on July 23 at 11 am. While other sectors wait to see Nirmala Sitharaman’s judgements on allocations and expenditures, salaried taxpayers are anticipating for significant respite from income taxes with the revisions to the new income tax regime and standard deduction.
Union Budget in India
Every year, the Indian government unveils its financial roadmap for the upcoming fiscal year through the Union Budget. It’s like a giant shopping list outlining how much money the government expects to earn (revenue) and how it plans to spend it (expenditure). But why is this such a big deal? Let’s break it down!
What is the Union Budget?
Imagine India as a giant household. The Union Budget is like the family’s financial plan for the year. It details the government’s projected income from taxes, fees, and other sources. It also lays out how this income will be allocated to various sectors like education, healthcare, infrastructure, defense, and social welfare programs. The Union Budget is presented by the Finance Minister in the Lok Sabha (the lower house of Parliament) and needs approval from both houses before it becomes law.
Know what happened during the Interim Budget 2024 here
https://theunitedindian.com/news/blog?Interim-Union-Budget-2024&b=166&c=5
Why is the Union Budget Important?
The Union Budget impacts every citizen directly or indirectly. Here’s why:
- Economic Growth: The budget influences economic growth by allocating funds for infrastructure development, job creation initiatives, and support for businesses.
- Social Welfare: The budget plays a crucial role in funding social programs like poverty alleviation schemes, education initiatives, and healthcare programs.
- Taxation: The budget might propose changes in tax slabs, deductions, or exemptions, impacting how much tax individuals and businesses pay.
- Investment Climate: The budget announcements can influence investment decisions by businesses, both domestic and foreign.
- Overall Development: The budget reflects the government’s priorities and vision for the country’s future development.
What to Expect in Union Budget 2024?
In order to encourage GDP growth, experts predict that the Union Budget 2024 would place a greater emphasis on capital spending, particularly on infrastructure. The middle class, corporations, farmers, the manufacturing, services, and agriculture sectors have certain expectations about the budget. Based on some source news reports and expert opinions, here are some key expectations from Union Budget 2024 :
Fiscal Deficit Target:
The government through Union Budget 2024 aims to reduce the fiscal deficit target slightly. The gap for the year through March 2025 could be 5% of gross domestic product (GDP) or even lower, compared to the previous target of 5.1% set before the national elections.
This adjustment reflects an intent to maintain financial control amid increasing demands from coalition partners who seek more funds for their states.
Income Tax Relief:
Salaried taxpayers are hoping for major income tax relief and changes in the new income tax regime. They are particularly interested in standard deduction adjustments.
While there is pressure to spend more, government finances have been boosted by a significant dividend transfer from the central bank and healthy tax collections in the world’s fastest-growing major economy.
As Business Owners & Budding Entrepreneurs
It is critical to concentrate on policies that encourage technological innovation in the manufacturing sector. We anticipate incentives that encourage the use of cutting-edge technologies, such as IoT and AI, which are essential for increasing productivity and raising competitiveness internationally. Policies that lower capital costs and provide tax vacations to new businesses will also greatly accelerate the sector’s growth. To optimise supply chains, significant infrastructure investment is required, particularly in the area of logistics. Initiatives to improve skills through collaborations between business and academia should be added to this to make sure our labour force is prepared to handle the demands of contemporary manufacturing.
Understanding the potential of waste management in the context of the circular economy is essential, particularly with regard to turning trash into new resources and energy.
Other Expectations
Various sectors, including healthcare, fintech, edtech, and education, are waiting to see decisions on allocations and expenditure3.
Startups hope for the elimination of angel taxes, and the health tech sector looks forward to increased funding.
In summary, the Union Budget 2024 aims to strike a balance between bold initiatives and fiscal responsibility, addressing economic challenges while fostering growth. Stay tuned for further updates as the budget presentation approaches! 🌟📊🇮🇳
