Budget 2024 Expectations: The general budget for the financial year 2024-25 should focus on giving relief to taxpayers, especially the people of the lower income group, so that consumption can be boosted. People from the industry have suggested this to Finance Minister Nirmala Sitharaman.
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Budget 2024 Expectations: The general budget for the financial year 2024-25 should focus on providing relief to taxpayers, especially those from the lower income group, so that consumption can be boosted. Industry leaders have suggested this to Finance Minister Nirmala Sitharaman. Sitharaman is scheduled to present the full budget for 2024-25 on July 23, which will be the first major policy document of the new government. The industry also urged the Finance Minister to reduce corporate tax, phase out tax exemptions and broaden the tax base to boost economic growth.
Make the tax system fair
Industry body Assocham said, “The tax system should be rationalised and simplified to improve compliance and boost investment. Measures such as reducing corporate tax rates, phasing out tax exemptions and broadening the tax base should be considered to make the tax system more efficient and equitable.”
Fiscal deficit may go up to 5%
Rating agency ICRA said that the government can set the fiscal deficit target for 2024-25 at 4.9-5 percent without compromising on the capital expenditure target of Rs 11.1 lakh crore. Earlier, in the interim budget presented on February 1, the government had estimated it to be 5.1 percent.
The rating agency said, “Favourable developments on the revenue front indicate a positive outlook for the fiscal position in FY2024-25. ICRA believes that fiscal consolidation will become more challenging after the current financial year.”
Will the low income group get relief?
Mayank Gupta, co-founder and chief operating officer (COO) of Zapper Insurtech, said the budget is expected to focus on policies that boost economic growth and especially provide relief to the lower-income groups to boost consumption.
He said that Section 80C of the Income Tax Act should be amended in terms of insurance, so that more people can be encouraged to buy insurance products. Apart from this, there should also be an exemption for term life insurance under the new tax system.
Extension of PLI schemes
Deloitte India economist Rumki Majumdar suggested that the government should expand the scope of PLI schemes. She said this should be done especially for sectors that can generate more employment, such as textiles, handicrafts and leather. Majumdar said that schemes should continue in successful sectors such as electronics, automobiles and semiconductors.
Religare Finvest Chief Executive Officer (CEO) Pankaj Sharma expressed hope that there is a need to reduce financing costs through interest rate subsidies and to make access to credit easier through policy measures. Assocham has also suggested structural reforms in the agriculture sector to increase productivity, market access and income opportunities for farmers.
