The budget for 2024 is decided to be an ‘interim’ one as the Union Finance Minister Nirmala Sitharaman is going to present the budget of the Financial Year 2024-2025 on February 1. The budget is said to be presented before the Lok Sabha elections, which will likely be held in April-May.
On January 31, the lower and upper houses will convene for the Budget session of Parliament, the final session of the current Lok Sabha. President Droupadi Murmu will deliver the opening remarks on the session, and the administration will encourage the opposition parties to assist in ensuring a peaceful and orderly session. Since there will be a general election in April-May this year, the budget is said to be ‘interim’ in nature. The future government will unveil the entire budget in July. In India, the Financial Year runs from April 1 to March 31 of the following year.
Budget Expectations 2024: Gov’t Policies
Union Finance Minister Nirmala Sitharaman also declared on Republic Day that poor women, farmers, and youth will be prioritized by the government programs. According to this, income tax slabs should be rationalized in order to increase the disposable income of the large voter base and encourage them to purchase more fast-moving consumer goods and durable consumer goods. A yearly LTA exemption rather than two in a block of four years, greater 80C limitations, and a rise in the basic exemption and standard deduction are also anticipated.
Budget expectations of MSMEs
The expectations in MSMEs -which stands for the Ministry of Micro, Small, and Medium Enterprises – are also high after the announcement of the Budget of 2024.
GALF’s founder and CEO, Amit Vasistha, stated that With MSMEs and startups becoming more and more important in maintaining and accelerating this growth, India is leading the way in the global economic recovery. Positive first outcomes are being obtained from previous activities related to MSME growth and Startup India. Establishing consistent state-level initiatives in line with federal government goals and preventing redundant paperwork and certifications between the federal and state levels are two important ways to support the expansion of startups and MSMEs. The local ecosystem may be greatly enhanced by giving entrepreneurs a clear preference and reservation in government contracts and tenders up to 20 crores. Furthermore, it is critical to give businesses with sales up to ₹2 crores a complete GST waiver and to increase expenditure to create an ecosystem that rewards institutions for investing in or purchasing services from startups with sales up to ₹20 crores. Encouraging impact-driven, nation-building, and ESG-linked enterprises directly through tax reductions and liberalizing the use of CSR money are other ways to promote this effort.
Budget expectations on Emerging Industries
Tax breaks for businesses investing in green technologies should be taken into consideration by India. The government’s ambitious aim of having thirty percent electric vehicles (EVs) on Indian roads by 2030 is something the electric vehicle (EV) sector expects the FAME II subsidy program to continue meeting. The industry also wants the GST rate on lithium-ion batteries to be lowered from 18% to 5% in order to promote battery switching in electric vehicles (EVs) that are marketed with fixed batteries. Production-Linked Incentives (PLI) ought to be expanded to include battery and electric power manufacturers as well as the storage sector. A suitable semiconductor environment should be developed, and this should be indicated in the budget. The budget should rationalize rules related to fintech and consider providing tax incentives for start-ups in this industry. A robust fintech ecosystem is essential for digital penetration and innovation. To support the general start-up ecosystem, India has to improve governance standards, simplify regulations, and create incentives specifically for important sectors.
