26-Jun-2024
2 mins read
As the Union Budget 2024 approaches for Modi's third term, the common people are keeping an eye on new policies and have many expectations. Anticipation runs high among industries, farmers, taxpayers, and the middle class alike as they await potential boosts and tax reliefs from the Finance Minister.
As the first budget of this NDA government, expectations are rife for impactful announcements that could shape India's economic trajectory in the year ahead.
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Interim Budget 2024 Boosted The Growth
In the February 2024 interim budget, FM announces various measures and schemes for country growth and welfare, such as Rooftop solarization and muft bijli, Ayushman Bharat, Agriculture and food processing, Corpus for Research and Innovation for growth, employment and development, Capex in infrastructure, Capex in Railways, Capex in Aviation, Green Energy and Tourism.
Key Expectations from FM in Upcoming Union Budget 2024
Boosting Consumption: The Confederation of Indian Industry has suggested tax cuts for India's lower income brackets to increase disposable income and spur consumption.
Although the Indian economy grew at an impressive 8.2% in 2023-24, consumption only grew at half that rate. CII also recommended higher wages under the rural job guarantee scheme and increased cash handouts to farmers to support rural spending.
Job Creation Initiatives: The CII has proposed an incentive payout scheme for private firms that generate jobs in labour-intensive sectors such as textiles and tourism.
Addressing unemployment is crucial, as a post-election survey indicated it was a primary concern for voters. In addition, labour unions have called for the government to fill job vacancies and restore pension benefits from a previously scrapped scheme.
Tax Reforms: Industry bodies have recommended simplifying India's complex tax regimes. FICCI and Industry has suggested streamlining the capital gains tax regime into two or three broad categories. FICCI also advocated for reforms in the Goods and Services Tax system, proposing fewer tax slabs and the inclusion of currently excluded sectors.
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