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As the country waits with bated breaths for the 2024 Union Budget, here’s a look at some of the big themes experts believe will take centre stage read more
 "A look at 5 big themes before Sitharaman reveals cards")
Finance minister Nirmala Sitharaman will present her seventh consecutive Union Budget on July 23. File Photo/PTI
With the completion of the customary Halwa Ceremony, Finance Minister Nirmala Sitharaman is all set to table the 2024 Union Budget. What makes the budget so significant is the fact that this will be the first budget introduced by the Modi 3.0 cabinet.
Hence, many are expecting the sacrosanct document to reflect the key priorities of the “not-so-new” administration. It is pertinent to note that this will be Sitharaman’s seventh budget which she will be introducing to the parliament.
With just few days left for the budget to take centre stage, experts from Nomura, CareEdge, etc. predicted the key themes of the 2024 Union budget.
Key themes before Sitharaman shows her cards
According to analysts, the following are the five major themes of the 2024 Union Budget:
1) Welfare schemes may get significant attention
According to the Budget expectations released by CareEdge, the Union Budget is expected to give higher allocation to Welfare Schemes.
CareEdge noted that over the past couple of years, the share revenue expenditure in total expenditure in welfare schemes declined from from pre-pandemic average of 88 per cent. Hence, in the Financial Year 25, the analytical group is predicting a 6.8 per cent jump in revenue expenditure.
It is predicted that the jump will lead to a Rs 750 billion higher allocation compared to the interim budget’s estimate. As per the body, the government is expected to do higher allocation towards agriculture, job creation and rural housing.
Schemes, where higher allocation is predicted, include MNREGA, PM Awas Yojana, PM Gram Sadak Yojana and PM Kisan Samman Nidhi.
2) Capex to continue holding significance
Meanwhile, Nomura anticipates that Public capital expenditure (Capex) will continue to remain a fundamental aspect of the Government’s economic agenda. The brokerage group is expecting a 3.5 per cent of GDP increase in the total Capex outlay. This will be up from 3.4 per cent which was reflected in the interim budget.
It is also predicted that the government might enhance the unconditional transfers under the 50-year interest-free loan scheme for infrastructure projects.
3) Focus on climate change and sustainability
As per CareEdge’s prediction, the budget will reflect the government’s intention to promote Compressed Biogas (CBG) to meet automotive fuel and domestic requirements by offering better rates for CBG.
“The budget is also expected to make favourable adjustments to the ethanol policy, particularly for the use of sugarcane juice and B-heavy molasses for ethanol production - to support the government’s goal of achieving 20 per cent ethanol blending in gasoline,” the analytical body averred.
To accelerate the adoption of EVs, Electric 2W & 3W, the government can also announce the extension of FAME-II and EMPS 2024 schemes. When it comes to real estate and infrastructure, the budget is expected to promote green bond issuances and facilitate access to low-cost loans for green-certified buildings.
Along with this, the government can also introduce Tax benefits/incentives for the deployment of eco-friendly construction materials.
4) The Belle of the Ball: Changes in Income Tax expected
According to Nomura, with an intention to stimulate consumer demand, the government may consider increasing the standard deduction limit for taxpayers under its new tax regime.
An increase is also expected in the exemption threshold for income derived from bank interest. Other than this, Nomura also stated that there could be a reduction in personal income tax rates for individuals earning between Rs 5 lakh and 15 lakh.
5) A push to ‘Make in India’: Promotion of the manufacturing sector
Nomura is also predicting that the government will reaffirm its commitment to domestic manufacturing in the 2024 Union Budget. Potential measures may include, reinstating the 15 per cent concessional corporate tax rate for new manufacturing entities.
The budget might also revise the 2019 policy on integrating the electronics’ global value chain. Nomura also predicted that the Production-Linked Incentive (PLI) scheme is also expected to enhance electronic components in the manufacturing sector.
While several analysts are coming up with their predictions for the upcoming budget, it will be interesting to see what the highly-anticipated plan would entail.
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English (US) ·