Finance Minister Nirmala Sitharaman is set to present the Interim Budget for FY-2024-25. She will set a record by presenting the sixth Budget in a row — five annual Budgets and one interim — a feat achieved so far only by former Prime Minister Morarji Desai. This Budget will be the last one by the Modi government before the country heads to General elections.
Ahead of the Interim Union Budget, the Finance Ministry in a report pegged India’s real GDP growth at closer to 7% in 2024-25 with ‘considerable scope’ to outpace 7% by 2030, adding that the economy will hit $5 trillion in the next three years, making it the third largest in the world.
With the presentation of interim Budget on February 1, Ms. Sitharaman will surpass the records of her predecessors like Manmohan Singh, Arun Jaitley, P. Chidambaram, and Yashwant Sinha, who had presented five budgets in a row.
Finance Ministry’s 10-year review of the economy asserts that India’s 7% growth when the world is growing 2%, is ‘qualitatively superior’ to 8%-9% achieved when the global economy grows 4%.
In 2023, the major budget announcement was the increase in the rebate limit for paying income taxes to ₹7 lakh. Further, railways was accorded its highest-ever capital outlay of ₹2.40 lakh crore.
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FEBRUARY 1, 2024 11:01Lok Sabha speaker begins proceedings
Speaker Om Birla begins proceedings of the Interim Budget session for 2024.
He calls on Union Finance Minister to present the Budget.
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FEBRUARY 1, 2024 11:00Proceedings for the presentation of the Interim Budget 2024 begin in the Lok Sabha
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FEBRUARY 1, 2024 10:51Union Cabinet approves Interim Budget for 2024
The Union Cabinet headed by Prime Minister Narendra Modi has approved the interim Budget. Following this, Finance Minister Nirmala Sitharaman will present her sixth budget in the Lok Sabha.
–PTI
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FEBRUARY 1, 2024 10:37Rail stocks trade higher ahead of Budget
Stocks of companies related to railways were trading in the positive territory on Thursday morning ahead of the presentation of the interim Budget.
Shares of IRCON International rallied 3.26 percent, Texmaco Rail & Engineering jumped 2.71 percent, Indian Railway Finance Corporation climbed 2.58 percent and Rail Vikas Nigam advanced 1.52 percent on the BSE.
The stock of Jupiter Wagons went up 1.46 percent, Indian Railway Catering and Tourism Corporation (IRCTC) (0.88 percent) and Titagarh Rail Systems (0.71 percent).
–PTI
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FEBRUARY 1, 2024 10:27Interim Budget 2024: Key numbers to be watched
Here are the key numbers to watch for in pre-election Budget 2024-25:
Fiscal Deficit: The budgeted fiscal deficit, which is the difference between the government expenditure and income, for the current fiscal ending March 2024 is 5.9 percent, against 6.4 percent in the last fiscal. The number for 2024-25 would be in focus as it is widely expected that the government would open its purse strings in an election year.
Disinvestment/Privatisation: In current fiscal year the budgeted disinvestment target is likely to be missed, like the past five years. It is expected the government would set a realistic target of sub-Rs 50,000 crore for next fiscal.
Capital Expenditure: The government’s planned capital expenditure for this fiscal year is budgeted at Rs 10 lakh crore, higher than Rs 7.3 lakh crore in the last fiscal. The government has been pushing infrastructure creation and also incentivising states to step up capex.
Tax Revenue: The Budget had pegged direct and indirect tax mop-up at Rs 18.23 lakh crore and Rs 15.29 lakh crore for current fiscal, taking the gross tax collection to Rs 33.61 lakh crore. The government’s tax revenues are expected to overshoot the budget estimates on buoyant collections in GST; and income and corporate tax.
–PTI
FEBRUARY 01, 2024 10:20From briefcase to bahi-khata: changes in how the Union Budget is presentedIn 2019, Finance Minister Sitharaman did away with the traditional Budget briefcase and instead went for a ‘bahi-khata’ with the national emblem to carry the speech and other documents. In 2021, when Budget was presented amidst COVID-19 pandemic, Ms. Sitharaman presented the first paperless Budget.
Until 1999, Budgets were presented at 3 p.m. on the last working day of February. Jaswant Singh changed the Colonial-era practice and presented it at 11 a.m. In 2017, the Modi government decided to present the Budget on February 1 to make it easy for the annual budget exercise before the new financial year. It was in the same year the Railway Budget became the part of the Union Budget.
Since 1955-56, the practice of tabling Budget documents in both Hindi and English began.
FEBRUARY 01, 2024 10:09How have previous Finance Ministers handled the interim budget ahead of General electionsThough fresh schemes are not announced during Interim Budget, some Finance Ministers in the past have used the occasion to announce doles.
For instance, the then Finance Minister Piyush Goyal in his interim Budget in 2019 had announced Rs 75,000 crore outlay for PM KISAN Samman Nidhi scheme wherein farmers are paid Rs 6,000 cash a year. He also raised standard deduction to Rs 50,000, and came up with tax rebate to ensure that individuals with income of up to Rs 7 lakh per annum are not taxed.
In the pre-election Budget of 2014, the then Finance Minister P. Chidambaram in the Congress-led UPA government slashed excise duty on cars, SUVs, two wheelers, capital goods and consumer durables to boost manufacturing.
Pranab Mukherjee too in his interim Budget in 2009 hiked the outlay for rural sector schemes to shield economy from the aftermath of global financial crisis triggered by collapse of US-based investment bank Lehman Brothers in 2008.
Jaswant Singh of the BJP-led NDA government in the 2004 pre-election interim Budget announced sops for central government employees.
FEBRUARY 01, 2024 10:07Nirmala Sitharaman reaches Parliament to present the interim budgetUnion Finance Minister Nirmala Sitharaman has reached the Parliament, ahead of the presentation of the interim budget today.
Before the session begins, the Union Cabinet will meet to approve the interim budget document.
FEBRUARY 01, 2024 10:04Sensex gave positive returns to investors 4 times during last 5 Budget daysIn the last five years, the BSE Sensex has given positive returns to investors four times on the Budget day and the benchmark rallied the most by 5% on the closing trade in 2021.
Barring February 1, 2020, when the 30-share BSE benchmark ended 987.96 points or 2.42% lower, the bellwether index ended in the positive territory on the Budget day in the year 2023, 2022, 2021 and 2019.
FEBRUARY 01, 2024 09:58Markets turn highly volatile after firm opening ahead of BudgetBenchmark equity indices began the trade on an optimistic note on Thursday but later faced heavy volatile trends ahead of presentation of interim Budget.
The 30-share BSE Sensex climbed 248.4 points to 72,000.51 in early trade after beginning the day on a positive note. The Nifty went up by 62.65 points to 21,788.35.
FEBRUARY 01, 2024 09:40India in good position economically: Executive Director of IMFAhead of the presentation of the Union Interim Budget today, K.V. Subramanian, Executive Director of the IMF and former Chief Economic Advisor to the Government of India said, “…India is in a good position (economically) but we have to continue the work…We have to further strengthen the reforms that have been done in manufacturing.”
Nirmala Sitharaman arrives at Finance Ministry ahead of Budget 2024Ahead of the presentation of the interim budget 2024-2025, Union Finance Minister Nirmala Sitharaman arrived at the Ministry of Finance on Thursday.
MoS finance Bhagwat Karad and Pankaj Chaudhary also accompanied her to the Finance Ministry.
Sensex gave positive returns to investors four times during last five Budget daysIn the last five years, the BSE Sensex has given positive returns to investors four times on the Budget day and the benchmark rallied the most by 5% on the closing trade in 2021.
Barring February 1, 2020, when the 30-share BSE benchmark ended 987.96 points or 2.42% lower, the bellwether index ended in the positive territory on the Budget day in the years 2023, 2022, 2021 and 2019.
FEBRUARY 01, 2024 09:17Sensex gave positive returns to investors four times during last five Budget daysIn the last five years, the BSE Sensex has given positive returns to investors four times on the Budget day and the benchmark rallied the most by 5% on the closing trade in 2021.
Barring February 1, 2020, when the 30-share BSE benchmark ended 987.96 points or 2.42% lower, the bellwether index ended in the positive territory on the Budget day in the years 2023, 2022, 2021 and 2019.
PTI
FEBRUARY 01, 2024 09:16Finance Ministers of India since IndependenceFEBRUARY 01, 2024 08:40Budget Basics: A glossary of terms used in BudgetHere is a ready reckoner for some of these terms:
Disinvestment Receipts
The term refers to the money raised by the Government through disinvestment or the sale of its equity stake in companies it owns.
Fiscal Responsibility and Budget Management Act
The Act is an attempt to make the Government adhere to a phased plan to reduce fiscal deficit, which denotes an excess of expenditure over revenue.
Dividend Distribution Tax
This is a tax levied on companies that pay out dividends to its shareholders, i.e. share a portion of earnings with them.
Venture Capital Funds
These are funds that invest in startups, a financially riskier proposition than investing in established companies.
FEBRUARY 01, 2024 08:01
Duty cut on mobile parts to positively impact end-pricing of smartphonesThe five percent duty cut on the import of mobile components holds the promise of potentially impacting end-pricing for consumers positively, said homegrown mobile manufacturer Lava International.
The Union government on Tuesday notified reduced import duty on mobile spare parts like battery covers, main lenses, back covers, mechanical items made of plastic and metal, and others from 15% to 10% to expedite exports from the country.
FEBRUARY 01, 2024 07:24
How is the interim Budget different from the Annual Budget?Ahead of the 2024 general elections, the Modi government is preparing to present its second interim budget on February 1.
Article 116 of the Constitution allows the Lower House to make any grant in advance for the estimated expenditure for a part of any financial year by voting and passing such legislation, i.e. vote on account. The Lok Sabha is empowered to authorize the withdrawal of required funds from the Consolidated Fund of India for such expenditure.
A simple vote on account includes presenting the Centre’s fund requirements for salaries, ongoing projects, and other expenditures for the transitional period and is then passed via the Lok Sabha sans debate. It cannot make any changes to tax rates. It is also valid only for two months and can be extended up to four months.
Read the whole explainer here.FEBRUARY 01, 2024 06:43
Budget expected to focus on infrastructure, spending big on new vote-garnering measuresThe Budget would, however, provide an occasion to assess the fiscal health of the economy against the backdrop of robust economic growth. It would provide an occasion for the government to give a clear roadmap for achieving the Fiscal Responsibility and Budget Management Act (FRBMA) targets.
The budgeted fiscal deficit of 5.9% of the gross domestic product (GDP) for the current fiscal is likely to be achieved, but it is nearly twice the FRBM fiscal deficit to the GDP target of 3 percent for the central government. Correspondingly, the debt-GDP ratio at 54 percent is also well above the target of 40%.
FEBRUARY 01, 2024 06:10Measures for eco, select segments to feature in Sitharaman’s 6th straight budgetFinance Minister Nirmala Sitharaman will on Thursday present the Modi 2.0 government’s last Budget before the general elections, which is likely to contain a mix of measures for the economy and electorally significant segments like farmers and women.
Peppered with political innuendos, her sixth straight Budget may present a political document with a snapshot of the Modi government’s triumphs over the last 10 years and pointers to how it wants to take the country forward.
With pressure for populist measures off after recent emphatic wins in three states, she is expected to stick to being fiscally prudent while sprinkling sops on sectors like agriculture and engines of the economy that would create jobs and boost consumption.
JANUARY 31, 2024 18:18Union Budget 2024 live streaming: When and where to watch Finance Minister Nirmala Sitharaman’s Budget speechAs Finance Minister Nirmala Sitharaman gears up to present the sixth Budget of her tenure, take a look at our quick guide on where and how to catch the live coverage of the Budget for the financial year 2024-2025.
JANUARY 31, 2024 17:31Where does the banking sector stand today? Pre-Budget AnalysisThe banking sector in India witnessed a return to relatively good health over the past few years. With more stringent norms set by regulator RBI NPAs have declined and bank balance sheets have shed much of their baggage of bad loans.
JANUARY 31, 2024 17:31What is the current state of the Indian economy? Pre-Budget Analysis Part 1 | In Focus podcastAs we begin our countdown to Budget 2023-24, India faces a tough global environment and volatile commodity prices, the latter posing upside risks to inflation. Economists see some bright spots in the economy as well as some concerning metrics, especially to do with exports and recent Core Sector or IIP figures that have given no discernible trend in recent months.
JANUARY 31, 2024 17:31What are the private sector investment levels in India? Pre-Budget AnalysisPrivate capital expenditure has been anemic for a few years now, a state of affairs that has only been exacerbated by the pandemic and the war in Ukraine. Business hates ambiguity and in the last three years, ambiguity alone has ruled our personal and professional lives.
The article originally appeared on The Hindu.