Union Budget 2024: What is it?
A government that is in the final year of its term, is in transition, or is approaching the end of its mandate presents an interim budget. For the months ahead of the elections, this budget provides a detailed breakdown of all anticipated spending as well as anticipated tax revenue. During this time, a government in power is not allowed to present its whole budget.
Union Budget 2024: Two budgets this year
Prior to the elections, FinMin Nirmala Sitharaman introduced the Interim Budget earlier this year, which is a vote on account to cover government spending until a new administration is established. Sources state that Nirmala Sitharaman, the minister of finance, will unveil the whole FY25 budget on July 23 or 24, which happens to be the Parliament’s Monsoon Session.
Union Budget 2024: What’s an interim budget?
A government in office, one going through a transition, or one in its final year before the general elections that take place every five years presents an interim budget. It includes a thorough accounting of every item that must be paid and every rupee that must be earned in taxes during the final few months before the general elections. The entire budget cannot be presented by the government in power.
When is FM Sitharaman going to present the Union Budget 2024?
Informed by sources that Finance Minister Nirmala Sitharaman is expected to present the Union Budget for the fiscal year 2024–25 to the Parliament on July 23 or 24. On the other hand, there has been no formal statement on the date of the budget presentation. It is anticipated that the budget would be presented on July 22, which is the opening day of the Parliament’s Monsoon Session.
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Upcoming Union Budget 2024: It could drastically change the state of education in India
With an emphasis on digital literacy, career training, and research innovation, the next Modi 3.0 budget seeks to transform India’s education system by bridging the gap between urban and rural areas and granting all citizens fair access to high-quality education. With a focus on STEM education and cutting-edge technologies, it aims to get kids ready for the global economy. Public-private collaborations will improve the caliber and accessibility of education even more. The CEO and founder of Skillible, Ankur Goel, claims that this budget, implemented under Modi’s direction, would lay a solid basis for an informed and competent India that is prepared to take on new challenges.
Upcoming Union Budget 2024: After-Pandemic Transition
While centrally funded programs have decreased during this time, the share of government spending on central sector programs has increased after the epidemic. A recent budget analysis by Moneycontrol indicates that the percentage of central sector schemes increased from 27.4 percent in FY18 to 32.2 percent in FY24. In contrast, during the same time span, the share of centrally funded schemes decreased from 13.3% to 10.5%.
Upcoming Union Budget 2024: A revolutionary stage for the IT sector is expected
Co-founder and CMO of GatewAI Suchita Vishnoi states, “The tech sector anticipates a transformative phase that could set new benchmarks for innovation and growth as India gets ready for the upcoming budget.” In an effort to strengthen India’s standing as a major global IT hub, there are high expectations for increased funding allocated to cybersecurity, artificial intelligence, and digital infrastructure. Leaders in the industry expect that incentives would encourage funding for startups and cutting-edge technologies, advancing the idea of a society empowered by technology. It is expected that a healthy entrepreneurial ecosystem will be fostered by streamlined regulatory frameworks and policies that facilitate ease of doing business, hence encouraging sustainable growth and company innovation.
Upcoming Union Budget 2024: Look at some of the main points of the Interim Budget 2024-25.
- Which will be included in the Union Budget 2024, are as follows: Sitharaman revised the fiscal deficit down from the previous target of 5.9% of GDP to 5.8% of GDP; the fiscal deficit in 2024–25 was estimated to be 5.1%; the gross borrowing was estimated at 14.13 lakh crore, while the Center’s net borrowings for FY25 were seen at 11.75 lakh crore; the Center also increased allocation to defense by 4% to 6.2 lakh crore, up from the budgeted estimate of 5.94 lakh crore in FY24.
- The Finance Minister declared that neither direct taxes nor indirect taxes would be altered. Nonetheless, until March 31, 2025, tax advantages for investments made by sovereign wealth funds and pension funds, as well as start-ups, were extended. The expected total revenue receipts for the fiscal year 2024–25 has increased from the previous revised estimate of 26.99 lakh crore to 30 lakh crore.
- Sitharaman stated that the government will support girls between the ages of 9 and 14 getting vaccinated against cervical cancer. She also mentioned that women and girls now make up 43% of STEM course enrollment, which is among the highest percentages in the world. Additionally, she mentioned that women from rural areas have received more than 70% of the houses under the PM Awas Yojana.
- An 11% increase was made to the budget for the capital expenditure outlay for the financial year 2024–2025, totaling 11.11 lakh crore, or 3.4% of GDP. According to Sitharaman, in order to improve passenger safety and comfort, some 40,000 standard rail bogies would soon be modified to the Vande Bharat Standards.
- According to the finance minister, over the course of the next five years, the Pradhan Mantri Awas Yojana (Grameen) will see an additional two crore dwellings built by the federal government. She added that in order to assist individuals in purchasing or building homes, a new housing program targeted at the middle class would be introduced.
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Additional Important Points.
- According to the analysis, investors made 4.1% on February 1, 2021, the best return on Budget Day.
- On July 6, 2009, the poorest return for investors was recorded at -5.4 percent.
- A cautious attitude was noted prior to the release of the budget, with negative median returns occurring one week (-1.4%) and one month (-2.2%) ahead of the declaration by the central government.
- According to the study, investor behavior was “mirrored” a year before and a year after the Budget. Investors would reduce their exposure 63% of the time owing to uncertainty, then re-enter the market 62% of the time following the Budget announcement, when the uncertainty subsided.
- One month later, investing one day before the Budget yields a “coin toss” return on investment with a 54% chance of being negative.
- The chances of good returns over one year are in line with the general trends in the equities market.