Everyone is waiting for the Union government's Budget. On 1 February, Finance Minister Nirmala Sitharaman will reveal the 2024 Budget of Prime Minister Narendra Modi's government. Similar to the last three Union Budgets, Budget 2024 will be presented in a paperless format.
This marks the final Budget of the second Modi government.
The Halwa ceremony, signifying the end of Budget preparation for Budget 2024, took place in North Block on Wednesday.
Sitharaman and Union Minister of State for Finance Dr Bhagwat Kisanrao Karad were among the dignitaries present. But what are people expecting from the Budget?
Let's dig deeper:
Firstly, it's important to know that Sitharaman won't present a full Budget this year. This Budget will be interim. In such cases, the government outlines an interim budget detailing expenses and income. This helps the government manage its financial responsibilities until a new government is formed. Ahead of the Union Budget, The Economic Times conducted a poll with interesting findings. Over 49% of respondents believe the budget will lay the groundwork for the full budget.
Another 26.5% expect Sitharaman to give general economic guidance.
Among the respondents, 38.4% desire a direct overhaul of the tax system.
Additionally, 24.7% want fuel and alcohol to be included in GST.
Twenty-two percent hope for easier business practices. And 15% are optimistic about technology and artificial intelligence programs.
Our reporter spoke to working professionals who shared their expectations:
These include:
- Raising the basic exemption limit
- Increasing the NPS limit under 80C
- Interest deduction for housing loans under the new regime
- Changes in tax slabs
Experts suggest salaried individuals anticipate a higher basic exemption limit. For Budget 2024, they hope for an increase in the basic exemption limit under both tax regimes, along with an increase in the standard deduction limit. They also expect HRA exemption and health insurance premium deductions under the new regime.
Tax and investment expert Manoj Kastiya from Mumbai states, "Back in 2003, the limit was ₹1 lakh. That's almost 18 years ago. In 2014, it went up by only 50%. That's less than 3% each year. It should be increased to at least ₹2.50 lakh."
In 2023, the finance minister adjusted tax slabs for those opting for the new regime. The Federation of Indian Chambers of Commerce and Industry (FICCI) has put forward comprehensive recommendations ahead of the Interim Union Budget.
Their proposals cover various sectors, from public investments to support for MSMEs, innovation, taxation, and the startup ecosystem.
FICCI highlights the importance of continued public capital expenditure, especially in infrastructure, based on positive data regarding capital formation and increased investment-to-GDP ratio.