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What to Expect from the Upcoming Budget 2024?

What to Expect from the Upcoming Budget 2024?

As India gears up for the presentation of the latest Union Budget 2024, the economic landscape is abuzz with expectations and speculations regarding the fiscal directions and policy initiatives that the government might undertake.

The Union Finance Minister, Nirmala Sitharaman, is expected to present an interim Budget that will lay down financial provisions for the initial months of the fiscal year until a full budget is introduced by the new or re-elected government.

From real estate and infrastructure to health, education, and agriculture, all the sectors are eagerly awaiting a budget that promotes growth, innovation, and development in their respective landscapes. Let’s dive into the key expectations of the various sectors before the budget announcement.

1. Infrastructural development

Infrastructure development, particularly in the sectors of roads and railways, is anticipated to receive significant attention in the budget allocations. The railways, in particular, might see a substantial increase in funding, continuing the trend of leading capital expenditure in government and central public sector enterprises’ projects.

2. Emphasis on clean and green tech

The manufacturing sector, along with clean and green technologies can be another focal point of the finance budget of India. This could involve adjustments to existing production-linked incentive schemes or the introduction of new sectors under these schemes.

This sustained emphasis aligns with the government’s goals of boosting domestic manufacturing and supporting environmental sustainability​

3. Concession to individual taxpayers

As the day of interim budget 2024 India nears, experts are anticipating full-budget benefits for individual taxpayers. There are speculations of concessions to individual taxpayers under section 87A. Under this section, the overall tax exemption limit may be increased to Rs. 8 lakhs from Rs. 7 lakhs, inclusive of rebates.

4. Fiscal consolidation

Intending to reduce debt, experts expect the budget announcement to focus on fiscal consolidation along with an increase in capital expenditure. This aligns with the vision to achieve a fiscal deficit target of 5.3% by FY25.

Despite challenges posed by a lower-than-expected GDP estimate for FY24, the government is expected to maintain fiscal discipline and achieve its deficit target of 5.9% of GDP for FY24, led by moderation in capex growth to 15%.

5. Affordable housing

The real estate sector also expects significant changes and relaxations with revisions in the affordable housing price bands. Experts expect the government to re-evaluate the existing pricing structure to better align with the diverse buyer groups.

In the current budget of India, there is a pricing cap for developers of Rs. 45 lakhs for affordable housing for a unit size of 60 sq. m of carpet area. Experts suggest an increase in this cap to Rs. 85 lakhs+ in metro cities like Mumbai, which will help qualify more houses as affordable and benefit a broader segment of homebuyers.

6. Higher agricultural spending

The rural and agricultural sectors are also expected to see a positive shift in spending. There might be an increase in allocations under the National Rural Employment Guarantee Scheme (NREGS) and other rural development initiatives.

Similarly, the agriculture sector might benefit from increased expenditures, particularly under the PM Kisan Scheme, indicating the government’s support for farmers and rural development.

7. Growth in finance

The fintech, banking, and MSME sectors anticipate budgetary measures that promote the sector’s growth and enhance its efficiency. These measures include higher capital addition and technological initiatives to open new opportunities. Further, the sector also expects increased collaboration between banks and fintech companies to help offer better services to the public.

In conclusion

The Union Budget 2024 is poised to address a wide array of economic challenges and needs to promote growth opportunities. If the expectations are met, the policy initiatives in the current budget of India for FY 25 are likely to bring great benefits to the business sector and the general public.

Amidst the rising expectations for a better fiscal year, if you are looking for personal, business, and home loans at competitive rates and with faster approvals, turn to Tata Capital.

For all your financial requirements visit your nearest Tata Capital branch or check the website – www.tatacapital.com

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