We are about to attend the presentation of the Union Budget 2024, a moment that has raised great expectations among various sectors. Finance Minister Nirmala Sitharaman will present this important budget on February 1, which will be the culmination of the Modi government's fiscal strategy 2.0.
Anticipating Changes
As we approach the important date of February 1, 2024, Finance Minister Nirmala Sitharaman is preparing to present the latest budget of the current Narendra Modi government. In this Lok Sabha election year, it is expected to be either an interim budget or a vote on account.
The burning questions revolve around possible relief for income taxpayers, revision of income tax rates scheduled for fiscal year 2025, and improving the attractiveness of the new income tax regime. Significant changes to the default tax regime were introduced last year, alongside record capital spending to stimulate the economy. Speculations suggest a continued focus on infrastructure development with an emphasis on roads and railways along with possible tax incentives for the new personal income tax regime.
Navigating Budget 2024
1. To promote India's tourism scenario
The travel and tourism sector expects positive changes in the budget by 2024. With the growth in domestic and inbound travel, India aims to become the world's fastest-growing aviation market in the next decade. Expectations include continued investment in infrastructure, technology, and security measures at airports, especially in tier 2, 3, and 4 cities under the UDAN scheme. Spiritual tourism takes center stage, focusing on improving infrastructure and accessibility in spiritual and cultural centers. Recent success stories, such as the revival of the Kashi Vishwanath Corridor, underline the potential impact on tourism. Budget measures to support the aviation sector, such as reducing the cost of aviation turbine fuel (ATF), are also eagerly awaited.
2. Income Tax Reforms: What does the future hold?
In the area of income tax, new amendments to the concessional tax regime are expected in Budget 2024. The government aims to encourage widespread adoption while maintaining the essence of the scheme. It will be important to strike the right balance to serve both middle-class and higher-income taxpayers.
3. Railway Budget 2024: Ways to the future
The Rail Budget is set to continue its focus on record capital expenditure. Key areas of focus include the introduction of new trains like Vande Bharat Express and Amrit Bharat Express as well as advancements in safety and infrastructure measures including the Kavach train anti-collision system.
4. To develop agriculture
Vasu Naren, Chairman and Managing Director, of Sona Machinery Ltd, highlighted the significance of the proposed record target for agricultural credit. This ambitious goal aligns with the vision of empowering Indian farmers by adopting smart machines and advanced farming technologies.
5. Fiscal outlook: A look at the data
EY presents some notable tax-related snippets, including growth in the number of individual taxpayers with income above Rs 50 lakh, a significant jump in net collections of direct taxes, and achievements exceeding budget estimates for FY 2023-24.
6. Market Dynamics: Stock Market Outlook
Looking ahead, stock markets are expected to react to the interim budget presentation, US federal policy decisions, and quarterly results. Investors' focus will be on foreign investor activities and global trends, with Purchasing Managers' Index (PMI) data revealing potential changes in the market.
Conclusion
As we prepare for the Union Budget 2024, expectations are clear in many areas. The upcoming Budget has the potential to shape India's economic landscape and stakeholders are eagerly awaiting its presentation on February 1.