by Mack
The 2024 Union Budget of India is expected to be presented by Finance Minister Nirmala Sitharaman in July. This will be the first annual budget under the Modi 3.0 Cabinet, marking a milestone in the country’s economic development.
2024 Union Budget of India
The budget is expected to build upon the principles of “Reform, Perform, and Transform” and focus on achieving more efficient and sustainable growth aligned with the Panchamrut goals.
The budget is anticipated to be presented during the week of July 15-21, pending the announcement of Parliament’s Monsoon Session schedule. The budget is also expected to focus on the welfare of the poor, women, youth, and farmers, aligning with the “Viksit Bharat” vision, which envisions a developed India by 2047.
The four pillars of Viksit Bharat include the “Garib” (Poor), “Mahilayen” (Women), “Yuva” (Youth), and “Annadata” (Farmers). The Finance Minister has emphasised the government’s commitment to creating an economy with high growth and an environment that enables people to meet their aspirations.
Expected Date and Time Frame of the Union Budget of India
Sitharaman is set to make history by becoming the first Finance Minister to deliver seven consecutive Budget presentations, which include six full budgets and one interim budget, thereby surpassing Morarji Desai’s record.
Therefore, the upcoming Union Budget of India is expected to be presented by Finance Minister Nirmala Sitharaman in July 2024. The exact date and time will be confirmed later, pending the announcement of Parliament’s Monsoon Session schedule. Based on past trends, the budget presentation is expected to occur sometime during the week of July 15th to July 21st, 2024, i.e., third week of july.
Expected Focus Areas of the Upcoming 2024 Union Budget
The upcoming Union Budget for the financial year 2024-25 is expected to address a variety of areas critical for India’s development. Some key anticipated themes are:
- Social Welfare: Aligning with the “Viksit Bharat” vision (developed India by 2047), the budget is likely to prioritise welfare programs for the underprivileged sections of society. This may include initiatives focused on:
- Poor (Garib): Schemes targeted at poverty alleviation and social safety nets.
- Women (Mahilayen): Increased budgetary allocations for women’s empowerment programs.
- Youth (Yuva): Initiatives promoting skill development and employment opportunities for young people.
- Farmers (Annadata): Measures supporting agricultural growth and income security for farmers.
- Fiscal Consolidation: The government might aim to maintain fiscal discipline alongside stimulating growth.Strategies may include:
- Fiscal Deficit Reduction: A potential target for lowering the fiscal deficit from the revised estimate of 6.4% in 2022-23 to a lower figure, perhaps around 5.9% of GDP.
- Revenue Deficit Reduction: Efforts to reduce the revenue deficit from the revised estimate of 4.1% in 2022-23 to a lower target, possibly around 2.9% of GDP.
- Taxation:
- Direct Taxes: The budget might retain existing tax rates for direct taxes, potentially offering relief to lower-income groups. An example could be maintaining the no-tax liability for income up to Rs.7 lakh under the new tax regime.
- Corporate Taxes: Existing domestic companies might continue to enjoy the current 22% corporate tax rate,with a possible extension of the 15% rate for certain new manufacturing companies.
Note: This information is based on media reports and expert analysis. The final details will be unveiled during the official budget presentation.
Expected Inclusive Areas of 2024 Union Budget of India
The focus areas of the 2024 Union Budget of India are expected to include:
- Inclusive Development: Emphasis on the welfare of the poor, women, youth, and farmers, aligning with the “Viksit Bharat” vision.
- Infrastructure Development: Significant allocation for projects such as the Solar Power Grid and the National Green Hydrogen Mission.
- Capital Expenditure: Increased capital expenditure in FY-25, focusing on sustainable development and infrastructure.
- Economic Growth: Creation of a dynamic and sustainable economic trajectory by fostering economic growth and social development.
- Fiscal Consolidation: Reduction of the budget deficit in FY-25, lower than the revised fiscal deficit of 6.4% in 2022-23.
- Social Welfare: Increased funding for schemes like the Mahatma Gandhi National Rural Employment Guarantee Scheme and the Ayushman Bharat (PMJAY) healthcare program.
- Green Growth: Focus on green growth initiatives, including the introduction of a 5% compressed biogas mandate for all organisations marketing natural and biogas.
- Youth Power: Emphasis on creating opportunities for the youth, particularly through the Pradhan Mantri Kaushal Vikas Yojana 4.0, which aims to skill lakhs of youth within the next three years.
- Financial Sector: Strengthening of the financial sector through the revamped credit guarantee scheme for MSMEs and the establishment of the Urban Infrastructure Development Fund (UIDF).
- Tax Rates: Retention of the same tax rates for direct taxes, with no tax liability for taxpayers with an income up to Rs 7 lakh under the new tax regime.
