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Business News/ Budget / Budget Expectations/  Budget 2024 Expectations Live Updates: Will Modi government prioritize boosting disposable income for salaried class?

Budget 2024 Expectations Live Updates: Will Modi government prioritize boosting disposable income for salaried class?

Budget 2024 Expectations Live Updates: Finance Minister Nirmala Sitharaman will present the 2024-25 Union Budget on July 23. With rumors swirling about potential tax reliefs, an increase in the standard deduction cap is anticipated. 

Budget 2024 Expectations Live Updates: Prime Minister Narendra Modi to Meet Leading Economists for Budget 2024-25 Discussions (PTI)Premium
Budget 2024 Expectations Live Updates: Prime Minister Narendra Modi to Meet Leading Economists for Budget 2024-25 Discussions (PTI)

Budget 2024 Expectations Live Updates: Prime Minister Narendra Modi is set to engage with prominent economists and sectoral experts. A senior government official disclosed that the meeting aims to gather insights and recommendations for the 2024-25 Budget, which Union Finance Minister Nirmala Sitharaman will present in the Lok Sabha on July 23.

This Budget is poised to be a critical economic blueprint for the Modi 3.0 administration, outlining key fiscal policies and initiatives. The consultation will see the participation of Niti Aayog Vice Chairman Suman Bery, along with other distinguished members, as the government seeks to integrate diverse expert perspectives into its financial planning.

10 Jul 2024, 09:43:17 PM IST

 Budget 2024 Expectations Live:  Arjun Ranga, Managing Director, Cycle Pure Agarbathi, said

"The upcoming Union Budget will certainly provide the required momentum for the retail and consumer space. We are confident that the government will ensure long-term growth while duly maintaining flexibility within these critical industries. The expectation from the budget is to ensure the National Retail Policy is formulated and create a window for financing specially for retailers and distributors. Organizations can additionally look forward with great interest to leverage the expected digital transformation incentives towards higher efficiency and more customer-centric offering abilities. Overall, we remain optimistic about the budget's impact on the retail and consumer products industry and look forward to working closely with the government to unlock the full potential of such dynamic segments"."

10 Jul 2024, 08:45:30 PM IST

Budget 2024 Expectations Live: Akash Agrawal, Co-Founder of Zoff Foods, commented on FMCG sector

“We urge the government to address the current inverted tax structure within the Goods and Services Tax (GST) framework. This structure impacts food manufacturers, hindering their ability to claim the full Input Tax Credit (ITC) due to higher tax rate paid for services and other items as compared to lower tax rate of raw materials. The tax rate on basic raw material procurement and final product is 5%, which makes a significant ITC blockage for manufacturers, leading to an average cash flow deficit of 10-15%. For instance, the tax rate on services is 18% whereas the tax of other raw materials range between 12%-18%. This ultimately translates to reduced investments in production capacity, innovation, and job creation."

10 Jul 2024, 07:19:51 PM IST

Budget 2024 Expectations Live: Prateek Maheshwari, Co-Founder of PW and Chair of the India EdTech Consortium (IEC), said on education sector

"Students that hail from Below Poverty Line (BPL) and Low Income Group (LIG) families should receive 100% GST exemption from all educational expenses, be it test-prep courses or job-oriented skill courses; as it takes away a significant portion of their net disposable income. The 18% tax slab is extremely high for a need as basic as education. The government should derive a mechanism to enable more students to receive quality education while making it affordable simultaneously. We welcome the GST exemption related to student housing; however, it is important to remove the ambiguities. It continues to be a gray area, given the student needs to continuously reside in that accommodation for a period of 90 days. While the aim is to benefit the students, this exemption lacks clarity on execution in terms of timeline."

10 Jul 2024, 06:14:00 PM IST

Budget 2024 Expectations Live: Sumit Prakash, Country Director, India and South Asia, Collinson International, commented on travel and aviation sectors

"With travel returning at pace in India, it has indeed been an exciting period of time for India’s aviation and tourism sectors. To cater to the robust growth in travel volumes, particularly from Tier 2 and Tier 3 cities within the country, 15 airport projects have already been announced across key destinations over the last quarter. This is further complemented by the inauguration of new airports, new terminals being developed at existing airports and the expansion of flight routes.

With this increased momentum of travel developments, coupled with Indian travellers placing a greater value on travel experiences, it presents significant opportunities for brands, particularly within the financial services sectors, to design strong travel experience propositions to deepen engagement and strengthen connections with their most valued consumers. We are looking forward to the strategic measures that the Government will put in place to further support the growth in the aviation and tourism industry; and we remain optimistic that further developments in this area will boost not only the growth of these industries but also positively impact businesses that are operating in the country."

10 Jul 2024, 05:02:02 PM IST

Budget 2024 Expectations Live: Anil Rego, Founder and Fund Manager at Right Horizons, said on banking and tax

“The upcoming budget aims to balance growth while funding alliance commitments, we anticipate the government will likely maintain its tax and non-debt capital receipt projections (including disinvestment) as outlined in the Interim Budget of February 2024. Anticipation is building across multiple factors, including industries, farming communities, taxpayers, and the middle class, as they await the upcoming announcement. An ambitious 100-day plan is likely which includes the awarding of significant thermal power and transmission line contracts for energy security and transition. This plan also features a new hydro policy to promote carbon-free energy, subsidies for battery storage, and India’s first offshore wind concession. There are also expectations on enhancements and tax reliefs, including a notable proposal to increase the 80C deduction limit from 150,000 to 200,000 under the old tax regime, a revision that was last made in 2014. The Union Government could utilise INR 500 billion to offer additional incentives for taxpayers to switch to the new tax regime and to enhance housing schemes or various other programs."

10 Jul 2024, 03:47:06 PM IST

Budget 2024 Expectations Live: Tarun Saini- CEO & Co-founder, Vidyakul, said on the education sector

“Under the current rules, services offered by edtech companies attract 18% GST, which impacts affordability in online education. This is a concern which edtech companies have been talking about since the last budget session. A reduction in GST on edtech services will lower service prices, boost affordability. We are hopeful the government will consider lowering the GST from the current 18%. In addition to this, we are looking forward to a closer collaboration between policy makers, government and startups in the form of PPPs (Public Private Partnerships) in the education sector. Connecting startups with education policy makers can create a powerful synergy to solve targeted problems and significantly enhance efforts to address critical issues. This will help create opportunities and enable a level-playing field for disadvantaged children in Bharat."

10 Jul 2024, 11:14:41 AM IST

Budget 2024 Expectations Live: Apollo Health and Lifestyle calls for an increase in funding to further support critical programs and services in mother and child care

“We are hopeful that the government will continue to prioritize the healthcare sector. The February 2024 budget demonstrated a commendable commitment to improving healthcare infrastructure and services, and we anticipate that this focus will be sustained and enhanced in the upcoming budget.

We look forward to a potential increase in funding that could further support critical programs and services in mother and child care. Enhancements in prenatal and postnatal care, neonatal intensive care units, and pediatric emergency services are crucial for addressing the growing needs of our community.

We trust that the upcoming budget will continue to support the development of a robust and resilient healthcare system, ensuring the highest standard of care for all," said, Sriram Iyer, Chief Executive Officer, Apollo Health and Lifestyle Limited.

10 Jul 2024, 11:00:38 AM IST

Budget 2024 Expectations Live: Enhancement of tax benefits for homebuyers. Increasing the deduction limit under Section 80C for principal repayments on home loans from the current ₹1.5 lakh to ₹2.5 lakh, says expert

Tejas Patil, Founder Arbour Investments, said, "With the industry still navigating the aftermath of the pandemic, it is crucial for the government to introduce supportive policies that will sustain the current growth momentum. One of the primary expectations is the enhancement of tax benefits for homebuyers. Increasing the deduction limit under Section 80C for principal repayments on home loans from the current 1.5 lakh to 2.5 lakh could provide significant relief and incentivize more individuals to invest in property. Additionally, more incentives for affordable housing projects are essential. Aligning these incentives with the government’s focus on capital expenditure, which is set to increase by 33% to 10 lakh crore, could stimulate both supply and demand. This would benefit not only the real estate sector but also the broader economy by creating jobs and driving economic activity.

Moreover, reforms in the Goods and Services Tax (GST) framework are highly anticipated to simplify tax compliance and reduce the overall tax burden on real estate transactions. The current GST rate of 12% on under-construction properties significantly increases the cost for homebuyers. Reintroducing the input tax credit for developers, which was withdrawn in 2019, could lower construction costs by an estimated 10-12% and improve affordability. The sector also looks forward to the continued emphasis on infrastructure development, as highlighted in the government’s expenditure budget, which allocates 2.4 lakh crore for the railways, the highest allocation ever. Improved urban planning initiatives, supported by the expected 1.5 lakh crore allocation for smart cities and urban rejuvenation, can significantly boost real estate values and attract further investments. In summary, a well-balanced budget addressing these critical aspects, including streamlined fiscal policies and targeted expenditure, could greatly contribute to the sector's robust growth and stability, ensuring a prosperous future for all stakeholders involved."

10 Jul 2024, 08:10:06 AM IST

Budget 2024 Expectations Live: Just six months after it crossed the historic ₹50 lakh crore mark in December 2023, the net AUM

Just six months after it crossed the historic 50 lakh crore mark in December 2023, the net Asset under Management (AUM) of the Indian mutual fund industry surpassed the 60 lakh crore mark in June 2024. The net AUM increased by nearly 38 per cent (37.76 per cent) to touch 61.16 lakh crore in June 2024, up from 44.39 lakh crore in June 2023. On a month-on-month basis, the net AUM increased by nearly 4 per cent (3.82 per cent) from 58.91 lakh crore in May 2024. After two successive months of higher inflows, the mutual fund industry witnessed net outflows to the tune of 43,637 crore for the first time since the beginning of this financial year.

Equity mutual funds witnessed a whopping 370 per cent rise in inflows at 40,608.19 crore in June 2024, as against 8637.49 crore in June 2023. “Domestic equity markets witnessed some initial volatility ahead of the outcome of the general elections. However, markets rebounded sharply on hopes of political stability and policy continuity. Gains were extended after India's GDP growth came better than expectations and stood at 7.8% in the fourth quarter of FY24. Market sentiments were further boosted after the Reserve Bank of India upgraded the GDP growth rate of the domestic economy to 7.2% from 7.0% for FY25 even though it kept the key policy repo rate unchanged," Ashwini Kumar, Senior Vice President and Head Market Data, ICRA Analytics, said.

10 Jul 2024, 07:44:16 AM IST

Budget 2024 Expectations Live: Healthcare expert calls for enhanced incentives for research and development

Shishir Gupta, CEO of Riot Labz, said, "As we approach the upcoming budget, RIOT LABZ hopes for increased government support for the electronics manufacturing sector. Enhanced incentives for research and development, along with subsidies for sustainable manufacturing practices, would significantly bolster our efforts to innovate and remain competitive globally. Additionally, streamlined regulatory processes and tax benefits for export-oriented units would facilitate smoother operations and expansion into international markets. We believe these measures will drive growth, foster technological advancements, and create more job opportunities within the industry. Furthermore, specific allocations for the development of skilled labour and upskilling programs would help bridge the talent gap, ensuring a steady pipeline of proficient workers to support our advanced manufacturing processes. We also hope for increased funding for infrastructure development in industrial hubs, which would improve logistics and reduce operational costs, enhancing overall productivity."

10 Jul 2024, 07:38:11 AM IST

Budget 2024 Expectations Live Updates: Expert expects a significant increase in budget allocation for mental health initiatives

We expect a significant increase in budget allocation for mental health initiatives, particularly in awareness campaigns, accessibility improvements, and affordability measures.

Our hopes include integrating mental health services into primary healthcare, substantial investments in digital mental health solutions, and incentives for startups innovating in this space. We advocate for measures addressing the shortage of mental health professionals through targeted skill development programs and promotion of tele-mental health services. Policies mandating mental health coverage in insurance plans, increased funding for mental health research, and the establishment of a national mental health database are also key expectations.

We particularly emphasize the need for increased funding to support early diagnosis and intervention programs for children with autism and neurodevelopmental delays. Additionally, we hope the government will expand the number of seats and courses in universities, ensuring the generation of more high-quality therapists to meet the growing demand.

We also anticipate initiatives to integrate mental health education into school curriculums and workplace wellness programs. Prioritizing these aspects in the budget will enable India to make notable strides in building a mentally healthier society, fostering innovation, and improving care delivery across the nation....-- said Mr. Krishna Veer Singh, Co-Founder, & CEO Lissun

10 Jul 2024, 07:35:28 AM IST

Budget 2024 Expectations Live Updates: Pre-budget deliberations are crucial for focusing on smart financial planning, especially regarding taxes, says expert

Jyoti Bhandari, Founder and CEO, Lovak Capital, said, “Delving into economic echoes and navigating past trends to forecast future fiscal terrain with insightful reflections is crucial. Pre-budget deliberations are crucial for focusing on smart financial planning, especially regarding taxes. With potential new tax regulations on the horizon, individuals and businesses need to adjust their financial strategies proactively. To continue the current momentum and enthusiasm amongst investors, the MFI association has suggested bringing uniform tax slabs in the various asset classes. For instance, they have advised removing the tax element for the switch transaction, bringing uniformity in taxation for investments in gold funds and physical gold, and making PMS and AIFs more tax-efficient for investors. We believe the pre-budget season goes beyond numbers; it's about creating a personalized financial plan for sustainable growth. Through a thorough analysis of possible fiscal changes and strategic adjustments, we are dedicated to guiding our clients toward a future strengthened by financial prudence. By implementing effective tax management strategies tailored to the Indian context, we help our clients optimize their finances while reducing tax burdens. We are committed to supporting our clients through this important phase, setting them up for success in the upcoming fiscal year."

10 Jul 2024, 07:31:51 AM IST

Budget 2024 Expectations Live: Healthcare experts calls for exemptions focused on mental health

Saurav Kasera, Co-founder and CEO, CLIRNET and DocTube, said, “As the burden of non-communicable diseases (NCDs) increases exponentially, the upcoming Union Budget must prioritize higher fund allocation and increase deductions for individual taxpayers for primary, preventative, and mental healthcare. Enhanced investment in these areas is crucial to reduce the overall healthcare burden and pressure on tertiary facilities. Furthermore, to incentivize SMEs to provide health insurance to all their employees, the government should offer an Input Tax Credit (ITC) on GST for health insurance expenses, which is currently not available to everyone. This will encourage SMEs to invest in employee health, leading to a healthier workforce and reducing the overall healthcare burden. Additionally, the healthcare sector needs a significant upgrade in its skilled workforce. Increasing funds and incentives for the training of nurses and other paramedical staff is essential to improve healthcare delivery and meet the growing demand for skilled professionals."

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