PM Modi to discuss the Budget with top economists ahead of its presentation on 23 July ; BIMSTEC foreign ministers’ retreat in Delhi.

PM Modi to discuss the budget on Thursday:

Source: ET BFSI

Prime Minister Narendra Modi, returning from visits to Russia and Austria, is convening a meeting with prominent economists on Thursday to deliberate on the Union Budget 2024-25. Finance Minister Nirmala Sitharaman is slated to present the budget in Parliament on July 23.

The upcoming budget marks the first fiscal plan of the Modi-led government in its third term. According to a senior government official, economists, industry experts, and Niti Aayog vice-chairman Suman Bery will convene to discuss fiscal strategies and present their insights and recommendations to the Prime Minister during the meeting. The Budget Session of Parliament is scheduled to commence on July 22 and will conclude on August 12.

Representatives from diverse sectors, including healthcare, agriculture, energy and infrastructure, education, and micro, small, and medium enterprises (MSME), among others, convened with Sitharaman over several days to express their perspectives and anticipations for the Budget, which will be the first of Modi’s third term.

Some recommendations by experts that have particularly resonated with middle-income families include a proposal for tax relief.

There are unconfirmed reports suggesting that the Centre may ease the tax burden on taxable earning individuals to stimulate consumption.

Some reports indicate that the Centre could revise the basic exemption limit and the standard deduction on income tax, potentially offering significant relief to taxpayers.

Expectations are high that the Finance Ministry could increase the standard deduction limit to Rs 1 lakh from the current Rs 50,000.

Industry experts recommend that the Centre consider raising the threshold for the 30 percent tax bracket from Rs 15 lakh to at least Rs 20 lakh, which could alleviate the tax burden for high-income earners.

Additionally, there is a growing demand to rationalize capital gains taxes. Investors will be closely monitoring for announcements related to this, as experts have advised the finance ministry to simplify the tax structure on capital gains.

Currently, capital gains are taxed based on the type of asset and the holding period, which experts consider ‘confusing.’ They have called for a more uniform taxation method.

About the BIMSTEC:

Source: Observer Research Foundation

The Link to the official X account of the BIMSTEC:

https://twitter.com/BimstecInDhaka/status/1810871676860780889?t=trW1hToRl09og2nt5-3wiQ&s=08

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is an international organisation comprising seven South Asian and Southeast Asian nations: Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand. Together, these countries, which rely heavily on the Bay of Bengal, are home to 1.73 billion people and have a combined gross domestic product of US$5.2 trillion as of 2023.

Fourteen priority sectors of cooperation have been identified within BIMSTEC, and several centres have been established to focus on these areas. A BIMSTEC free trade agreement, similar to the SAARC agreement, has been under negotiation since 2018.

The leadership of BIMSTEC rotates alphabetically among the member countries. The organisation’s permanent secretariat is located in Dhaka, Bangladesh.

BIMSTEC foreign ministers’ retreat: 

External Affairs Minister S Jaishankar will convene a two-day retreat in the national capital for his counterparts from member countries of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), starting Thursday.

The Ministry of External Affairs (MEA) has stated that the retreat will provide a platform for the foreign ministers of seven South Asian and Southeast Asian countries, who are members of BIMSTEC, to explore opportunities for enhancing cooperation in sectors such as security, connectivity, and trade.

In addition to India, BIMSTEC comprises Sri Lanka, Bangladesh, Myanmar, Thailand, Nepal, and Bhutan.

Source: X

Myanmar’s Deputy Prime Minister U Than Swe has arrived in Delhi to participate in the retreat. His visit coincides with Myanmar experiencing heightened conflict between the military junta and resistance forces, with several towns already under resistance control.

India has actively sought to elevate BIMSTEC as a robust platform for regional cooperation, given the stalled progress of initiatives within SAARC (South Asian Association for Regional Cooperation) due to various challenges.