The Finance Minister, Nirmala Sitharaman, is gearing up to present the interim budget to Parliament on February 1, 2024. This budget won't include any major government announcements, but it's drawing significant attention as it's the final budget before the general elections.

With just a week until the budget presentation, anticipation is high for Finance Minister Nirmala Sitharaman to unveil some popular measures. However, the complete Union Budget will follow later, after the general elections and the formation of the new government.

Let's discuss some expectations for the 2024-25 Budget:

  1. Boost in Standard Deduction: Many are hoping for tax relief, possibly through an increase in the standard deduction. Last adjusted in 2019, some experts suggest making the standard deduction a percentage of an individual's salary for fair distribution.
  2. Expanding HRA to Bangalore and Hyderabad: Currently, House Rent Allowance (HRA) provides a tax break for rent payments, but the benefits are lower in cities like Bangalore and Hyderabad compared to Delhi or Mumbai. People advocate for equalizing these benefits due to the rising living costs in these cities.
  3. Increased Deductions for Home Loan Interest: Prospective homeowners might expect higher deductions for the interest paid on home loans, potentially reducing the overall cost of homeownership.
  4. Support for First-Time Home Buyers: The budget could introduce new subsidies or enhance existing ones to facilitate first-time home purchases.
  5. Reduced GST on Construction Materials: Both builders and buyers are pushing for a reduction in GST on construction materials. This move could lower housing costs if the savings are passed on to buyers by builders.

The Confederation of Indian Industry (CII) has offered some recommendations for Finance Minister Nirmala Sitharaman:

  • Launch a National Mission for Advanced Manufacturing to improve efficiency.
  • Provide additional incentives to labor-intensive sectors and those heavily reliant on imports.
  • Establish special technology hubs in industrial regions.
  • Promote the development of industrial parks in rural areas to bolster local manufacturing.