Budget 2024: Here are four important expectations from FM

8 Jul 2024 , 12:53 PM

Finance Minister Nirmala Sitharaman faces high expectations as the 2024 Budget approaches.

Prime Minister Narendra Modi’s government, which recently returned to power with the help of allies following a surprise election victory, is expected to unveil the budget in mid-July.

This will be the BJP-led NDA government’s first major policy declaration since winning a historic third term, and it is expected to explain prospective changes to India’s economic goals over the next five years under the coalition government.

Key industrial groups and economic experts have made seven critical recommendations, which they hope will be fulfilled in the budget to boost economy, enhance livelihoods, and simplify the tax system.

The Confederation of Indian Industry (CII) has proposed tax cuts for India’s lower income tiers to boost disposable income and consumption.

Although the Indian economy expanded at an amazing 8.2% in 2023-24, consumption rose at half that rate.

The CII also suggested raising wages under the rural job guarantee plan and increasing cash payments to farmers to boost rural expenditure.

Agricultural economist Ashok Gulati and numerous agricultural organisations have urged the government to abolish export restrictions on farm products such as rice, wheat, sugar, and onions.

These restrictions, which were introduced to regulate consumer prices, had an impact on rural earnings. More than 45% of India’s population is dependent on agriculture, and relaxing these restrictions could enhance farmers’ income.

The CII has proposed an incentive payout plan for private companies that create jobs in labour-intensive industries like textiles and tourism.

Addressing unemployment is critical, as a post-election survey found that it was the most pressing issue for voters.

In addition, labour unions have urged the government to fill job openings and reinstate pension benefits from a previously abandoned programme.

Industry groups have suggested streamlining India’s complex tax frameworks.

The Federation of Indian Chambers of Commerce and Industry (FICCI) has proposed simplifying the capital gains tax scheme into two or three main categories.

FICCI also supported for GST reform, suggesting fewer tax bands and the inclusion of previously excluded sectors.

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