Budget 2024 Expectations Live Updates: Minosha India MD anticipates stable tax environment
“As we anticipate the upcoming Union Budget 2024, our expectations are aligned with the current global economic landscape. We foresee stability in corporate tax rates, considering that India’s corporate tax rates are already in harmony with global standards,” said Atul Thakker, Managing Director – Minosha India Ltd.
Budget 2024 Expectations Live Updates: Home Credit India CEO advocates fiscal prudence and robust economic future
Ahead of the interim budget, Ondrej Kubik, Chief Executive Officer, Home Credit India, said, “We anticipate significant impact from the government’s initiatives to further strengthen the manufacturing sector and boost capital expenditure, foreseeing positive implications for India’s economic trajectory.”
Budget 2024 Expectations Live Updates: Historical trends suggest post-budget bounceback
Indian equity markets, having recently reached new record highs in January, are undergoing a correction about two weeks before the Interim Budget presentation on February 1. Analysts note that despite the anticipation of no major announcements in this vote on account budget, increased volatility prevails as investors grapple with uncertainty. Market participants are hopeful that the government will persist in spending on infrastructure and attracting private sector funds. Investors express optimism regarding the government’s continuation of the previous year’s strategy, focusing on long-term investments in infrastructure and a commitment to fostering sustainable economic growth. Read more
Budget 2024 Expectations Live Updates: Ahead of Budget, Jayant Sinha discusses India’s global leadership, $10 tn GDP goal
In the event of Narendra Modi securing a third consecutive term as prime minister after the upcoming general elections, Jayant Sinha, chairperson of the Parliamentary Standing Committee on Finance, suggests that Modinomics 3.0 would prioritize global leadership. Speaking at Moneycontrol’s Policy Next summit, ‘India’s $10 trillion run,’ on January 18 from his Lok Sabha constituency of Hazaribagh, Sinha emphasized that as India approaches the milestone of a $5-trillion economy, it is opportune to intensify efforts towards the longer-term goal of achieving a GDP of $10 trillion. Read more
Budget 2024 Expectations Live Updates: RK Singh seeks more finance for power sector, incentives for green hydrogen
The Ministries of Power and New and Renewable Energy have appealed to the finance ministry for increased funding and additional incentives for the National Green Hydrogen Mission (NGHM) in the upcoming Interim Budget. Union Minister for Power and New and Renewable Energy, RK Singh, mentioned at Moneycontrol’s Policy Next summit on January 18 that while his ministries have made several requests for the interim budget, the ultimate decision rests with the finance ministry. Read more
Budget 2024 Expectations Live Updates: Meet the team behind the interim Budget FY25
The Union Budget’s drafting process is led by top bureaucrats in the Prime Minister’s Office (PMO) and the Finance Ministry, involving a meticulous and elaborate procedure. The initiation is marked by a ceremonial ‘halwa’ event at North Block, the Finance Ministry’s location in New Delhi, symbolizing the start of compilation and printing for the Union Budget. During the printing phase, officials commit themselves to the office, maintaining limited communication due to the document’s high-security status. Key contributors in the Finance Ministry include Sanjay Malhotra, Ajay Seth, Tuhin Kanta Pandey, Vivek Joshi, TV Somanathan, and V Anantha Nageswaran. The PMO’s role is crucial, with individuals such as PK Mishra, Arvind Shrivastava, Punya Salila Srivastava, Hari Ranjan Rao, and Atish Chandra playing vital roles in policy matters, finance, and governance verticals. TV Somanathan, overseeing capital expenditure, and PK Mishra, managing important policy issues, are particularly influential in shaping the budget’s direction, with the entire process commencing six months before the budget presentation.
Budget 2024 Expectations Live Updates: Energy sector expectations from FM
– The oil and gas industry anticipates the Finance Minister to reallocate a portion of its expenditures to enhance the green and sustainable energy sector.
– Many oil public sector undertakings (PSUs) are actively working towards attaining their net-zero goals and making substantial investments in renewable energy sources.
– In the prior budget, Sitharaman had earmarked Rs 30,000 crore for capital investments in the transition to energy for state-owned oil marketing companies (OMCs).
– Nevertheless, this allocation has not yet been disbursed to the OMCs.
Budget Expectations 2024: Edtech firms hopeful for tax incentives to boost affordability of online learning
Edtech firms express hope for potential tax incentives and benefits in the interim budget. They contend that a decrease in Goods and Services Tax (GST) rates on digital educational content and services could enhance the affordability of online learning, proving advantageous for both students and edtech companies.
Budget Expectations 2024: After rate hikes and status quo, time for cuts is coming
The Reserve Bank of India (RBI) grapples with a dual mandate, balancing the need for lower interest rates to combat easing inflation with a commitment to robust economic growth. Despite headline retail inflation exceeding the 4 percent medium-term target for over four years, the global landscape introduces uncertainty. After substantial rate cuts in response to the economic standstill caused by the pandemic, the RBI implemented a 250 basis points rate hike in 2022-23. Currently, with resilient growth and anchored core inflation, experts anticipate an extended pause by the RBI. However, as inflation approaches 4 percent and global rate cycles shift, the focus may shift to growth considerations, albeit with caution against overtightening. Some economists predict a reversal of this trend, with expectations of interest rate reductions starting in June 2024, in response to a more favorable global monetary policy backdrop. Read more
Budget Expectations 2024: Jefferies forecasts modest growth in government social spending amidst focus on welfare programs
Envisioning an increase in welfare spending, Jefferies emphasized the importance of direct benefit transfers and welfare initiatives, citing examples from recent state elections such as the widely embraced Ladli Behna plan in Madhya Pradesh.
The firm anticipates a growth of around 7-8 percent in the government’s social spending, excluding subsidies, for FY25, a notable increase compared to the 4 percent rise in FY24.
In an attempt to manage the fiscal deficit at 4.5 percent of the GDP by FY26, the government plans to augment social expenditure while curbing capital expenditure growth.
Budget Expectations 2024: FinEdge’s Harsh Gahlaut seeks a reduction in corporate tax rates
“Further reduction in corporate tax rates, now that direct and indirect tax collections are showing a robust trend. This would be keeping in line with the glide path the government has spoken about in the past. A tax reduction at this point would encourage business sentiment as a whole and would be an investment towards stronger tax collections in the future,” saidHarsh Gahlaut, Co-founder & CEO, FinEdge.
“Reducing double tax whammy on dividends paid to shareholders. This double taxation is a dampener for business investments (ROI) as first, the business pays tax on profits and then pays dividend distribution tax once again when the dividend is paid out. Investors who have put up risk capital while investing in business should also be able to withdraw profits as ease of doing business without having to pay taxes twice,” he added.
Budget 2024 Expectations: Jefferies predicts deceleration in capex growth
During Budget 2023, government capital expenditure (capex) experienced a surge, increasing by more than 33 percent to reach Rs 10 lakh crore. However, for the current year, market expectations for growth range between 15 and 20 percent. Jefferies, on the contrary, forecasts a more modest growth of just 7-8 percent.
Budget 2024 Expectations: Guide to Key Terms and Fiscal Insights
The Union Budget, outlined by Article 112 of the Indian Constitution, details the anticipated fund allocation for various departments, ministries, and schemes in the upcoming fiscal year. It covers government receipts and presents a financial snapshot, including Budget Estimates (BE), Revised Estimates (RE), and Actuals.
Budget Estimates project revenue and expenditure for the next fiscal year, requiring Parliament approval. Revised Estimates adjust these figures based on mid-year assessments without necessitating parliamentary approval. Actuals provide a retrospective view of the prior financial year.
For instance, in the FY 2023-24 Budget, total receipts, excluding borrowings, were estimated at Rs 27.2 lakh crore, with a fiscal deficit projected at 5.9% of GDP. The government anticipated net market borrowings at Rs 11.8 lakh crore and gross market borrowings at Rs 15.4 lakh crore. Read more
Budget 2024 Expectations Live Updates: Ease of doing business to be 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.
Budget 2024 Expectations Live: Here’s what the Power Minister wants from interim budget
I want more finance, more incentives for green hydrogen from the interim budget. But that’s between Union Finance Minister Nirmala Sitharaman and me, says Power Minister RK Singh at the Moneycontrol Policy Next Summit.
If the Modi government comes back to power, the Power Ministry’s focus would be on capacity expansion and bringing down losses from 15 percent to 10 percent, he adds.
Budget 2024: Budget Estimates and Revised Estimates, know key differences
-The expenditure and receipt numbers are organised under three categories – Budget Estimates, Revised Estimates and Actuals.
-As Finance Minister Nirmala Sitharaman is scheduled to present the Budget 2024 on February 1 in Parliament, click here take a look at these key terms.
Budget 2024 Expectations Live Updates: Adjustments in standard deduction necessary
The reintroduction of the standard deduction in Budget 2018, initially capped at Rs 40,000, was later raised to Rs 50,000 to encourage individual taxpayers. In Budget 2023, this benefit was extended to the new tax regime.
Due to the significant inflation and escalating living costs for salaried individuals, the current standard deduction of Rs 50,000 is deemed inadequate. Hence, regular adjustments to the standard deduction are imperative to reflect the growing expenses for the salaried class.
Budget 2024 Expectations Live Updates: Deloitte suggests PLI scheme expansion for job-intensive sectors
To promote manufacturing and job creation, Deloitte suggests expanding the PLI scheme, including garments, jewelry, and handicrafts in the upcoming interim Budget. Currently covering 14 sectors, the Production-Linked Incentive (PLI) scheme may be crucial for employment-intensive sectors, addressing inflation and consumption demand issues, according to Deloitte India Partner Rajat Wahi. Read more
Budget 2024 Expectations Live Updates: Healthcare startup COO calls for GST cut on alternative healthcare services
“In the pursuit of a healthier society, the demands of alternate healthcare sectors cannot be overlooked. The prevailing 18% GST on alternative healthcare services acts as a deterrent to wider acceptance among the populace. To foster inclusivity and affordability, a significant reduction to either 5% or zero is imperative.
In the realm of healthcare startups, dedicated to preventive care and chronic disease reversal, a stark disparity exists. Despite their commendable efforts, they are denied the privileges accorded to hospitals, such as reduced electricity rates, property tax exemptions, concessions for land acquisition, and streamlined access to debt funding. Rectifying this imbalance is crucial for fostering innovation and sustainability in the alternative healthcare landscape.
The Ayush ministry, while undertaking branding and lip service, falls short of actively contributing to the alternative healthcare sectors. To address the specific issues faced by these sectors, a paradigm shift is required. Direct engagement with stakeholders is not just a necessity; it is an imperative step towards creating a supportive ecosystem. Only through a collaborative effort, where policy meets practice, can we truly nurture and elevate the alternative healthcare sectors to their rightful place in promoting well-being for all,” said Avinash Deshmukh, COO, iThrive, iThrive, a Pune based health and wellness startup.
Budget 2024 Expectations Live Updates: CARE Hospitals CEO calls for robust Healthcare focus
“In the upcoming 2024 budget, the government could consider enhancing the budget for the healthcare industry. The increased budget allocations can improve accessibility and affordability to people not just in Tier I cities, but also in Tier II and Tier III cities. Simplifying and making fairer taxes, specifically reforming GST, can contribute to this goal. The government could also consider a framework to focus on healthcare insurance, medical supplies and equipment, telemedicine, and medical tourism sectors of the healthcare industry.
In my view, there is a critical need for focused attention on hospital infrastructure. While hospitals delivered essential and high-quality treatment during the pandemic, the prevailing circumstances underscored the inadequacies in facilities, particularly a glaring shortage of beds and treatment options, especially in non-metro cities. Consequently, the government must prioritize enhancing infrastructure, especially in non-metro areas, ensuring that individuals can readily access healthcare when required. This initiative will not only benefit local communities but also contribute to the overall improvement of healthcare services on a global scale.
Allocating funds for training and development programs for healthcare providers, such as doctors and nurses, is essential. This will enhance their skills and contribute to better healthcare outcomes.
2024 could be a promising year for the healthcare sector. We are hoping the government is going to consider the healthcare industry as a focus in this year’s union budget,” said Jasdeep Singh, Group CEO, CARE Hospitals Group
Budget 2024 Expectations Live Updates: Salaried class anticipates hike in Section 80C and exemption limits
The salaried class is anticipating an increase in both the basic exemption limit and Section 80C. Currently set at Rs 1.5 lakh, expectations for Budget 2024 also encompass a higher limit for the senior citizens’ savings scheme, exceeding Rs 30 lakh, along with enhanced income tax rebates.
Budget 2024 Expectations Live Updates: New Delhi metro corridor between Haryana and UP likely to be announced
An official has revealed that the Union Budget on February 1 is expected to unveil a new Delhi Metro corridor connecting Haryana and Uttar Pradesh via Delhi, with an estimated cost of Rs 7,500 crore. The proposed sixth corridor of Delhi Metro’s Phase IV, extending the red line from Rithala to Kundli in Haryana, is in its final approval stages, and the announcement is anticipated in the upcoming budget. Currently, three corridors of Phase-IV are operational, and the fourth and fifth corridors are under construction.
Budget 2024 Expectations Live Updates: FY2023-24 Witnesses 37% Surge, Interim Budget Raises Questions
Capital expenditure (capex) has consistently been the central focus of the current government in its annual Budgets. However, the FY2023-24 Budget witnessed a substantial 37% year-on-year (YoY) increase in capex spending, amounting to Rs10 lakh crore, in contrast to the single-digit rise in the previous year.
As the country approaches the Interim Budget in two weeks, two crucial questions emerge: 1) Has the government effectively utilized these substantial outlays? 2) Will the capex allocation experience a similar acceleration in the upcoming Interim Budget?
Budget 2024 Expectations Live Updates: Renewable Energy sector seeks green hydrogen priority for grid stability solutions
The power and renewable energy industry asserts that, having previously championed solar and wind energy, the government should now prioritize green hydrogen, leading to significant growth in installation and manufacturing capabilities. In the upcoming budget, the sector expects policy incentives to promote energy storage solutions, ensuring sustained grid stability.
Budget 2024 Expectations Live Updates: Some key anticipations for tax policy changes
Given India’s thriving economy and increasing global influence, it’s crucial to tailor tax policies to suit the requirements of both domestic and international taxpayers.
In recent years, the government has undertaken measures to streamline the tax system, providing incentives to businesses and individuals for easier compliance. With expectations from the common man, the upcoming budget is anticipated to focus on simplifying tax provisions and compliance.
Such efforts aim to broaden the tax base and alleviate administrative burdens for the tax department, fostering greater inclusivity and efficiency.
Budget 2024 Expectations Live Updates: MTaI urges duty reduction for affordable healthcare in Union Budget
On January 17, the Medical Technology Association of India urged a reduction in customs duty to 2.5%. They also requested the removal of ad valorem health cess on medical devices in the upcoming Union Budget. The industry body, representing research-based medical technology firms in India, emphasized the need for affordability in healthcare. The chairman, Pavan Choudary, noted that current customs duties and taxes on medical devices in India are among the world’s highest, contradicting the government’s affordability goals. Read more.
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.
The article originally appeared on money control.