Union Budget 2024-25: Major Expectations & its Impacts

With the rising buzz on social media and recurring debates on news channels about the upcoming budget, I’m sure you must have wondered what is Union Budget is and why should you be aware of it. Are you curious about the latest tax changes or how the government plans to boost the economy? Our blog delves into the key highlights and the Union Budget 2024 summary along with its expected impact on your life. Join us as we break down the complex terms of the Union Budget 2024-25 to learn how this financial plan shapes India's growth and what it means for you!

What Is The Union Budget?

The Government makes several policies and plans to ensure that the nation runs smoothly with maximum development and efficiency. The Union Budget is one of these plans and is often regarded as one of the most important ones. Just like we chart out monthly budgets for our family and household expenses, the Government devises a well-detailed budget every year with financial guidelines for different departments of the Union. Presented annually by the Finance Minister, this budget highlights the government's income and expenditure plans for the coming year. It impacts every citizen, from businesses to households.

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Key Facts About The Union Budget 2024

The Union Budget is an extensive document that is prepared after months of diligent research and discussions. During the development of the budget document, various experts from different fields contribute to the process. No wonder the final budget gets overflown with numerous technical terms, jargon, and complicated definitions that are hard for a common man to understand. Don’t worry cause we have prepared a list of simple facts and highlights in layman's terms that are easy to understand.

• The National Finance Minister, Shrimati Nirmala Sitharaman will deliver the annual budget speech on Union Budget 2024 date, July 23, 2024.
• Under the leadership of Prime Minister Narendra Modi, the upcoming budget will be the 11th Annual Budget of the NDA Government
• Infrastructure development, providing new employment opportunities, boosting agricultural production, and controlling inflation are expected to be the core issues of the budget.
• This year’s budget will follow the theme of ‘Viksit Bharat by 2047’ for the swift development of the country.
• The Union Budget 2024 is developed by the Ministry of Finance with assistance from other government departments and experts from the Reserve Bank of India.
• The Finance Minister will deliver the budget speech after the iconic ‘Halwa Ceremony’ in the Lok Sabha of Parliament, New Delhi.
• Ministry Of Finance commenced its research and development on the Union Budget 2024-25 in September 2023.
• A post-budget meeting of the Finance Minister and the Reserve Bank Of India’s Board Of Directors will be held after the budget announcement.

Major Expectations From The Union Budget 2024-25

Although the details of the budget are yet to be revealed on the Union Budget 2024 date, we understand the anticipation around this announcement. Thus, to curb your curiosity, we have conducted extensive research to prepare a list of expected highlights of the Union Budget 2024. The ten major expectations of this year’s Budget of Union Government in India are given below in simple and easy-to-understand terms:

1. Reduction In Tax Rates For Individuals - Many tax experts, industry leaders, and Chartered Accountants have pointed out the reduction of tax rates and the change in tax slabs for individual assessees to boost their purchasing power.
2. Pro-Startup Policies - Taxes on raising funds and venture capital are expected to be eased with the improvisation of the Startup India Scheme.
3. Investment In Infrastructure - The Government has been consistently focusing on the development of basic infrastructure and the same trend can be seen in the Union Budget 2024.
4. Support To MSME Industry - Micro, Small, and Medium Enterprises (MSMEs) may witness a reduction in interest rates and easy access to credit facilities from banks and NBFCs.
5. Eco-Friendly Initiatives - Policies like carbon taxation and the promotion of green energy are expected to be included in this year's budget.
6. Improvement In Healthcare Facilities - The Government may increase the expenditure on healthcare facilities to make healthcare accessible, especially in rural areas.
7. Focus On Education And Skill Development - We may witness a sharp focus on quality education and skill development of India’s youth to tackle the rising unemployment problem.
8. Promotion Of Digital Initiatives - New and technologically advanced modes of governance are likely to be introduced to foster the vision of ‘Digital India’.
9. Reduction In Imports - One of the main aims of the Union Budget 2024 is expected to improve the fiscal deficit. The Government is looking forward to shifting its focus from imports to exports for a more stable economy.
10. Policies To Improve The Livelihood Of Farmers - The agricultural sector may benefit from new subsidies and policies to improve the quality of life of India’s rural farmers by enhancing their income sources.

Expected Impact Of The Union Budget 2024 On Major Sectors

It is a well-known fact that the economy is divided into many different sectors based on the activity. The announcements made in the annual budget affect each of these sectors differently. Some of them may see a positive impact while others may not respond too well. The points given below highlight the expected potential impacts of the Union Budget 2024 on various sectors, reflecting the government's focus on economic growth. Certainly! Here are additional points focusing on the expected impact of the Union Budget 2024 on major sectors of the Indian economy:

1. Manufacturing Sector - The budget is likely to introduce incentives for manufacturing, such as tax breaks and subsidies, to boost production and create jobs.
2. Real Estate & Housing - Policies aimed at affordable housing and real estate development are expected, which could include tax incentives for homebuyers and developers.
3. Automobile Industry - The automobile sector may see benefits from policies promoting electric vehicles (EVs) and hybrid cars, including subsidies and tax rebates to increase the affordability of EVs.
4. Banking and Finance - Reforms in the banking sector, such as measures to reduce faulty loans and improve credit facilities to businesses are expected.
5. Telecommunications - The budget might include schemes to improve the availability of 5G infrastructure and reduce spectrum charges to support the telecom industry.
6. Tourism & Hospitality - The tourism sector could witness a boost through initiatives aimed towards promoting domestic and international tourism, especially in lesser-known locations of the Northeast. The hospitality industry may also receive tax incentives.
7. Retail and E-commerce - Policies to support the growth of ONDC, the government’s e-commerce channel, and schemes like simplified GST regulations and digital payment incentives are expected.
8. Energy Sector - Subsidies for investments in renewable energy projects like solar power and incentives for energy-efficient technologies are likely to be a focus to reduce dependency on petrol, diesel, and coal.
9. Textile Sector - The textile industry may benefit from schemes aimed at promoting the adoption of modern production techniques for better export competitiveness.
10. Logistics & Supply Chain - Improvements in logistics infrastructure, such as better road and rail connectivity for faster transportation and reduction in shipping costs are possible.

Conclusion

With all eyes on announcements from the Finance Minister Of India, the Union Budget 2024-25 has become the trending topic across the masses in India. The importance of the Union Budget in India is undeniably significant for it affects our everyday lives either directly or indirectly. The Union Budget of Union Government in India is much more than a financial document, it is the roadmap for our nation's economic future and development.

Frequently Asked Questions

Q1. Why does India have two budgets this year?

Ans. The Government Of India has introduced two budgets in the year 2024 due to the interruption caused by the recent Lok Sabha elections.

Q2. Where is the Union Budget usually presented?

Ans. The Union Budget is presented in the Lok Sabha by the Union Finance Minister.

Q3. Who is the Finance Minister of India?

Ans. Shrimati Nirmala Sitharaman is the current Finance Minister Of India.

Q4. Which department is responsible for the budget?

Ans. The Department Of Economic Affairs is the primary body responsible for formulating and presenting the budget of the Union Government in India.