The interim budget for the fiscal year 2024–2025 will be made public soon, wherein Finance Minister Nirmala Sitharaman will propose the interim budget for the fiscal year to the Parliament. On 1st February 2024, the budget will be presented before the Parliament. The complete Union Budget will be declared after the General Elections once the new government is established.
There are several forecasts for the Union Budget Expectation 2024 throughout this fiscal year. In this blog, we will discuss what to anticipate from the budget of 2024, when it will be presented, which industry will be lucrative in the fiscal year 2024–2025, and how the budget will affect the different market sectors.
As per the experts, the following are some of the primary expectations-
Taxpayers are expecting some relief in income tax. It is expected that there might be an increase in the standard deduction. The standard deduction had its last revision in 2019. As per the experts, an amendment might be proposed for the standard deduction application as a percentage of an individual’s salary income. This may ensure fair benefits for all employed persons.
As per the research conducted by a few experts, the Indian government may announce a waiver of tax collected at source on individual overseas credit and debit card expenditures. This may be up to Rs 7 lakh per financial year.
Individuals have often been wishing for this amendment for a prolonged period. Given the rising medical costs, they are hoping that the deduction limit under Section 80D for medical insurance premiums should be increased from Rs 25,000 to Rs 50,000 for individuals and Rs 50,000 to Rs 75,000 for senior citizens.
Due to multiple demands over the years, analysts anticipate the Security Transaction Tax (STT) to be removed or reduced, primarily in the cash market.
Like every year, this year, too, people are anticipating a reduction in income tax rates and an increase in tax exemption limits.
Though the Central Bank Digital Currency (CBDC) has been enabled, analysts are hoping for an in-depth policy regulating cryptocurrency. Given the success of the G20 Summit and the noteworthy discussion about the crypto market, it is likely that a comprehensive regulatory framework may come into the picture.
Analysts predict that a budget allocation of around Rs 3 lakh crore may be on its way for the Railways department. Given the plans to produce 400+ fuel-efficient Vande Bharat trains, it is highly likely that the Railways will benefit from the budget this year.
The ever-evolving pharmaceutical sector is hoping for substantial budget allocation from the government, considering its scale, success rate, high risk, and several economic factors.
Many builders expect the Budget to grant industry status to the real estate industry, enhancing easy access to loans and credit. Many developers are hoping for a reduction in the interest rates on project finance.
With the launch of Ayushman Bharat, the Indian government plans to double insurance coverage under the Pradhan Mantri Jan Arogya Yojana (PMJAY) to Rs 10 lakh from Rs 5 lakh.
The Energy sector, primarily the oil and gas industry, expects a substantial sum from the Budget 2024 to boost and promote sustainable life.
After El Nino's impact, the agriculture sector anticipates a considerable portion of the budget. Given the rapid weather changes and severe damage to the green fields, the entire agriculture sector was highly impacted across the nation. A positive stride is hence expected from the interim budget 2024.
This year's Budget might adopt a balanced strategy toward physical consolidation and economic development in light of the next election. As a result, the budget may concentrate more on infrastructure expenditures, such as healthcare, defence, railways, agriculture, etc. Still, the Budget Expectations 2024 shows that incentives for several new plans for other sectors may also be on their way.