With the 2024 Budget fast approaching, there are many expectations from Finance Minister Nirmala Sitharaman.
Here are four key expectations from the upcoming budget:Boosting consumptionThe Confederation of Indian Industry (CII) has suggested tax cuts for India's lower income brackets to increase disposable income and spur consumption.
CII also recommended higher wages under the rural job guarantee scheme and increased cash handouts to farmers to support rural spending.
Lifting farm export restrictionsAgricultural economist Ashok Gulati and various farm bodies have urged the government to lift restrictions on exporting farm products like rice, wheat, sugar, and onions.
All eyes on Tax reformsIndustry bodies have recommended simplifying India's complex tax regimes.
With the 2024 Budget fast approaching, there are many expectations from Finance Minister Nirmala Sitharaman.
Prime Minister Narendra Modi's government, which recently returned to power with the support of allies after a surprising election outcome, is likely to present the budget in mid-July.
This will be the BJP-led NDA government’s first major policy announcement after securing a historic third term and it is anticipated to outline potential changes to India’s economic priorities for the next five years under the coalition government.
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Key industry bodies and economic experts have put forth several crucial demands that they hope will be addressed in the budget to spur growth, improve livelihoods, and simplify the tax structure.
Here are four key expectations from the upcoming budget:
Boosting consumption
The Confederation of Indian Industry (CII) has suggested tax cuts for India's lower income brackets to increase disposable income and spur consumption.
Although the Indian economy grew at an impressive 8.2% in 2023-24, consumption only grew at half that rate.
CII also recommended higher wages under the rural job guarantee scheme and increased cash handouts to farmers to support rural spending.
Lifting farm export restrictions
Agricultural economist Ashok Gulati and various farm bodies have urged the government to lift restrictions on exporting farm products like rice, wheat, sugar, and onions.
These restrictions, imposed to control consumer prices, have impacted rural incomes. More than 45% of India's population relies on agriculture, and easing these restrictions could boost farmers' earnings.
Job creation initiatives
The CII has proposed an incentive payout scheme for private firms that generate jobs in labor-intensive sectors such as textiles and tourism.
Addressing unemployment is crucial, as a post-election survey indicated it was a primary concern for voters.
In addition, labour unions have called for the government to fill job vacancies and restore pension benefits from a previously scrapped scheme.
All eyes on Tax reforms
Industry bodies have recommended simplifying India's complex tax regimes.
The Federation of Indian Chambers of Commerce and Industry (FICCI) has suggested streamlining the capital gains tax regime into two or three broad categories.
FICCI also advocated for reforms in the Goods and Services Tax (GST) system, proposing fewer tax slabs and the inclusion of currently excluded sectors.
Published By: Koustav Das Published On: Jun 26, 2024
