Anticipations for Budget 2024 Unveiled: Crucial Metrics, Sector Forecasts, and Engaging Insights

Expectations for Union Budget 2024: The forthcoming comprehensive fiscal plan for 2024-25 is poised for revelation post Lok Sabha elections in July, led by the newly-formed government.

Anticipations for Interim Budget 2024: The Union budget, a pivotal event in the financial calendar, triggers heightened speculation regarding government expenditures, fiscal deficits, and individual taxation, with Finance Minister Nirmala Sitharaman set to present the interim budget on February 1, 2024.

JANUARY 17, 2024 / 06:18 PM IST

Budget 2024: Advocacy for Augmented Rural Healthcare Value Chain by HCG Manavata Cancer Centre

“Fortifying the healthcare value chain, especially in rural areas, where a substantial segment still lacks access to quality healthcare, is imperative. To realize this goal, augmenting healthcare expenditure is paramount. The current budget allocation hovers at a meager 1.6 to 1.8 percent. It is proposed to elevate it to 2.5 or 3 percent of the present budget, ensuring a substantive impact,” emphasized Dr. Raj Nagarkar, MD & Chief of Surgical Oncology & Robotic Services at HCG Manavata Cancer Centre (HCGMCC).

JANUARY 17, 2024 / 06:01 PM IST

Union Budget 2024 Expectations: From Senior Living to Co-working, Top Aspirations in Real Estate

Approaching the interim Union budget for 2024-25, stakeholders in the sector anticipate pivotal policy measures to stimulate growth. Despite the persistent challenges in the real estate sector, the pace of issue resolution remains sluggish, leaving expectations largely unchanged, despite their persistent urgency.

JANUARY 17, 2024 / 05:41 PM IST

Union Budget 2024 Expectations: Energy Sector’s Hopes for Allocations Toward Cleaner Fuels and Green Hydrogen

— India’s energy sector anticipates a budget that prioritizes cleaner fuels such as green hydrogen and natural gas.

— Reforms for city gas distribution (CGD) players, aimed at boosting natural gas consumption, are awaited by the oil and gas sector.
— The power sector anticipates announcements fostering the adoption of renewable energy.

JANUARY 17, 2024 / 05:24 PM IST

Union Budget 2024: Accusations Against BJP Government Regarding Agricultural Budget Cuts

Congress leader Deepender Singh Hooda asserted that the Standing Committee report highlights consistent reductions in the agricultural sector’s allocation by the BJP government. The government, as per Hooda, not only diminished the budget but also failed to fully utilize the allocated funds. He claimed a decrease from 4.4 percent to a mere 2.5 percent over the past four years and predicted renewed farmers’ protests in February, citing unmet promises and an “unspent” Rs one lakh crore that could have alleviated farmer debts.

JANUARY 17, 2024 / 05:02 PM IST

Union Budget 2024 Expectations: Tourism Sector’s Desires for February 1 Speech

— Rajesh Magow, Co-founder & Group CEO, MakeMyTrip: The absence of GST credit for hotel construction in India poses a significant obstacle to the nation’s hospitality sector. Rationalizing GST rates and permitting GST credit could render hotel stays more affordable. Such a move by the Hon’ble Finance Minister would not only enhance tourist accommodations but also stimulate further investments in the sector, ultimately expanding India’s organized hotel supply.

— Aviation Turbine Fuel (ATF): FM Sitharaman could contemplate a broader policy framework indirectly influencing ATF costs, such as central excise duties and customs duties. A reduction in ATF costs might initiate a chain reaction, increasing air travel frequency, boosting airport revenues, and improving connectivity to diverse tourist destinations, thereby significantly uplifting tourism and contributing to local economies and national economic growth.

JANUARY 17, 2024 / 04:48 PM IST

Union Budget 2024 Expectations: MTaI Advocates Customs Duty Reduction and Health Cess Removal on Medical Devices

— The Medical Technology Association of India proposes a reduction in customs duty to 2.5 percent and the elimination of ad valorem health cess on medical devices.

— The industry body, representing major research-based medical technology companies with a significant presence in Indian manufacturing and training, also urges the expansion of government health insurance schemes to cover day care surgeries.

JANUARY 17, 2024 / 04:02 PM IST

Union Budget 2024 Expectations:

Pharmaceutical Industry’s Quest for R&D Incentives and Favorable Policies
— Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, emphasizes the high risk, long gestation period, and low success rate in pharmaceutical research, highlighting the need for continuous investments.

— Jain emphasizes that the budget for 2024-25 should delineate policies conducive to both direct and indirect tax benefits, facilitating a business-friendly environment for pharmaceutical companies.

JANUARY 17, 2024 / 02:57 PM IST

Did you know when was the Union Budget printed in Hindi for the first time in India?

Until 1955, the Union Budget was exclusively published in English. Finance Minister CD Deshmukh initiated the simultaneous printing of the Union Budget document in both English and Hindi during the 1955-56 Union Budget. This tradition has endured since then.

JANUARY 17, 2024 / 02:34 PM IST

Union Budget 2024 Expectations Live Updates: Industry’s Hopes from Interim Budget

• “The imminent budget in 2024 presents a pivotal opportunity to accelerate India’s medical devices sector growth. The government’s continuous efforts, including initiatives like PRIP (Promotion of Research and Innovation in Pharma MedTech Sector) and MedTech Mitra, aim to bolster the Indian Medical Devices sector,” noted Vivek Shah, CEO, Meril, highlighting the potential for further support through reduced import duties and lowered GST on locally sourced raw materials, particularly for crucial medical devices like stents, heart valves, knee, and hip implants.
• “Incorporating advanced treatment methods like TAVI/TAVR into the AB-PMJAY insurance scheme and encouraging private health insurance companies to follow suit can significantly broaden healthcare access for economically weaker sections. This proactive step not only extends healthcare coverage but also fosters innovation and inclusiveness in insurance products, making comprehensive healthcare accessible to all,” Shah further added.

Insights into Union Budget 2024 Anticipations: Live Updates on Fiscal Allocations

JANUARY 17, 2024 / 02:19 PM IST

Union Budget 2024 Expectations Live Updates: The Central Government is contemplating earmarking an approximate $48 billion for next year’s food and fertilizer subsidies.

• Two government sources indicate that India is weighing the allocation of around 4 trillion rupees ($48 billion) for food and fertilizer subsidies in the upcoming fiscal year. This strategic move reflects fiscal prudence, anticipating the impending general election later this year.
• In the current fiscal year, concluding on March 31, food and fertilizer subsidies constitute about one-ninth of India’s total budget spending, amounting to 45 trillion rupees.
• The Ministry of Consumer Affairs, Food, and Public Distribution projects a food subsidy bill of $26.52 billion for the next fiscal year, marking a 10 percent increase from the estimated allocation of nearly $24.11 billion in the ongoing 2023-24 fiscal year.

JANUARY 17, 2024 / 02:02 PM IST

Union Budget 2024 Expectations Live Updates: Industry Perspectives on the Interim Budget

• Rohit Mehta, Founder & Managing Director of ICPA Health Products Ltd. (ICPA), notes, “With nearly two-thirds of India’s population residing in rural areas, access to medical services remains a critical challenge. The stark disparity in doctor-to-population ratios between rural and urban areas leaves the rural population significantly disadvantaged in healthcare access.”
• Mehta emphasizes the need for the government to prioritize rural healthcare in its budgetary allocations, advocating direct investments in infrastructure and medical personnel. He further suggests targeted incentives to attract doctors and hospitals to underserved areas.

JANUARY 17, 2024 / 01:32 PM IST

Exploring Historical Union Budget Deliveries by Prime Ministers

• The first instance of a prime minister delivering the budget occurred in 1958 when Pandit Nehru took charge following TT Krishnamachari’s resignation amid the Mundhra scandal.
• In 1970, Indira Gandhi assumed the responsibility of presenting the Union Budget after the departure of Finance Minister Morarji Desai, marking her as the first woman to present the budget.
• In 1987, a significant event unfolded when Prime Minister Rajiv Gandhi took charge of presenting the budget, succeeding Finance Minister VP Singh, who had already resigned.

JANUARY 17, 2024 / 01:25 PM IST

Union Budget 2024 Expectations Live Updates: Centre’s Plans for Budget Incentives in Low-Cost Housing

• India is poised to unveil an extension of Prime Minister Narendra Modi’s federal housing initiative in the upcoming budget, accompanied by an increase in subsidies for affordable housing loans, as reported by Reuters.
• Finance Minister Nirmala Sitharaman is expected to present an interim budget on Feb. 1, with indications pointing towards a probable increase of over 15 percent in allocations for low-cost housing, reaching 1 trillion rupees ($12 billion) for the fiscal year 2024/25.

JANUARY 17, 2024 / 12:49 PM IST

Union Budget 2024 Expectations Live Updates: Industry Anticipations for Interim Budget 2024

• Amrit Acharya, CEO & Co-founder at Zetwerk, comments on India’s manufacturing prospects, stating, “India’s manufacturing moment is now; and we need to seize it with a 25-year vision.” He emphasizes the need to go beyond ‘Make in India’ and advocates for a self-reliant ecosystem through R&D investment, cutting-edge technologies, and robust skilling programs.
• Acharya highlights the importance of collaboration between established manufacturers and new-age companies for higher growth in manufacturing, envisioning India as a global factory.

JANUARY 17, 2024 / 12:02 PM IST

Union Budget 2024 Expectations Live Updates: Pharma Industry’s Expectations

• Anil Matai, Director General of the Organisation of Pharmaceutical Producers of India (OPPI), commends the government’s efforts to boost sector investments in R&D for pharma. He advocates for extending concessional tax rates to companies solely engaged in R&D of pharma, eliminating import duties on life-saving drugs, and increasing incentives for innovation and foreign investment in advanced research.

JANUARY 17, 2024 / 10:39 AM IST

Union Budget 2024 Expectations Live Updates: Fiscal Deficit Parameters

• India has been addressing a portion of its deficit through domestic market borrowings and utilizing small savings funds.
• Despite the option of raising funds through international bonds, India has refrained, citing potential cost-effectiveness and exposure to exchange-rate risk since the Balance of Payments crisis in 1991.

JANUARY 17, 2024 / 10:05 AM IST

Historical Insights: The Originator of the Union Budget Concept in Independent India

• PC Mahalanobis, a distinguished Indian statistician, played a significant role in formulating and presenting the first Union Budget. Additionally, Mahalanobis was the visionary behind the creation of the Planning Commission and the implementation of five-year plans.

Insights into Anticipated Union Budget 2024: Live Updates on Key Fiscal Parameters

JANUARY 17, 2024 / 10:00 AM IST

Union Budget 2024 Expectations Live Updates: Scrutinizing Crucial Fiscal Deficit Metrics

• Within the context of a government’s budget discourse, the fiscal deficit assumes a pivotal role, symbolizing the disparity between the government’s revenue and expenditures.
• It further underscores the overall amount necessitated for the government to borrow in order to meet its financial obligations.
• Prolonged and elevated fiscal deficits may give rise to apprehensions regarding the government’s capacity to fulfill financial commitments without excessive dependence on borrowing.
• For fiscal 2023-24, the government has established an ambitious target fiscal deficit of 5.9 percent of the GDP.

JANUARY 17, 2024 / 9:42 AM IST

Union Budget 2024 Expectations Live Updates: Delving into Capital Expenditure Dynamics

• Analogous to an individual acquiring a washing machine or a vacuum cleaner for enduring utility, government capital expenditure (capex) is directed towards constructing infrastructure like roads, railways, and ports.
• This form of expenditure yields a heightened growth multiplier by contributing to the establishment of durable assets and fostering job creation in the economy.
• Over the past decade, government capex has played a pivotal role in sustaining the economy, particularly during periods of subdued private investments.
• In recent times, there has been a surge in both the advocacy for capex and the allocation from the Centre, reaching a substantial amount of Rs 10 lakh crore for the financial year 2023-24.

JANUARY 17, 2024 / 9:27 AM IST

Union Budget 2024 Expectations Live Updates: Examining Expenditure Breakdown

• These numerical values often dominate headlines due to their significance in propelling economic activity.
• The projected total expenditure for fiscal 2023-24 stands at Rs 45.03 lakh crore, a critical metric influencing the economy.
• It is imperative to scrutinize the distribution, discerning the allocation between revenue expenditure and capital expenditure.
• Revenue expenditure can be likened to household essentials, encompassing groceries and utilities, akin to staples such as rice or wheat and electricity.
• The anticipated revenue expenditure for fiscal 2023-24 is Rs 35 lakh crore.
• Given the approaching election year, vigilant monitoring is essential for extravagant, populist initiatives. Notably, social-sector expenditure witnessed a surge from Rs. 9.1 lakh crore in FY16 to Rs 21.3 lakh crore in FY23 (BE).

JANUARY 17, 2024 / 8:58 AM IST

Union Budget 2024 Expectations Live Updates: Strategic Considerations for Disinvestment

• Another integral facet involves disinvestment, denoting the purposeful sale or liquidation of government-held assets, typically in the form of shares in state-owned enterprises and other holdings. This constitutes a vital component of fiscal policy.
• In fiscal 2022-23, disinvestment proceeds amounted to Rs 35,293 crore, representing 54 percent of the set target of Rs 65,000 crore.
• While the Union budget for fiscal 2023-24 aimed for a disinvestment target of Rs 51,000 crore, the government has thus far only realized Rs 10,051 crore.

JANUARY 17, 2024 / 8:43 AM IST

Historical Insights: Pioneer of Independent India’s 1st Union Budget

• The inaugural Union Budget of sovereign India was presented by RK Shanmugam Chetty, the first finance minister of free India, on November 26, 1947, precisely two years prior to Constitution Day.

JANUARY 17, 2024 / 8:21 AM IST

Union Budget 2024 Expectations Live Updates: Recapitulating Tax Projections for Union Budget 2023-24

• In the Union budget 2023-24, the finance minister outlined a gross tax revenue projection of approximately Rs 33.61 lakh crore, resulting in an implicit tax-GDP ratio of 11.1 percent.
• The budget estimate for indirect tax collection in fiscal 2023-24 was set at Rs 15.37 lakh crore, while direct taxes, encompassing corporation tax and income tax, were anticipated to reach Rs 18.24 lakh crore.
• During the preceding fiscal year (FY23), the central government recorded a gross tax revenue of Rs 30.43 lakh crore, with direct tax revenue amounting to Rs 14.2 lakh crore.
• Additionally, non-tax revenue, encompassing dividends from the Reserve Bank of India and public sector institutions, totaled Rs 2.86 lakh crore in FY23.

Insights into Anticipated Union Budget 2024: Live Updates on Revenue Dynamics

JANUARY 17, 2024 / 8:05 AM IST

Union Budget 2024 Expectations Live Updates: Scrutinizing Vital Revenue Parameters

• The fiscal plan encompasses three fundamental facets on the revenue front: tax revenue, non-tax revenue (embracing dividends and interests), and disinvestments.
• To evaluate the viability of tax revenue projections, it becomes imperative to juxtapose them against nominal GDP metrics.
• Nominal GDP denotes the aggregate value of all goods and services generated within a designated timeframe, typically on a quarterly or annual basis.
• Conversely, real GDP rectifies nominal GDP for inflation, offering a gauge of genuine production growth devoid of the warping effects of inflation.
• The envisaged nominal GDP expansion for FY24 hovers around 8.9 percent.
• Employing this metric, one can approximate the nominal GDP for the fiscal year and subsequently compute the anticipated tax revenue, traditionally constituting approximately 10-11 percent of nominal GDP, given India’s tax-to-GDP ratio typically resides within that spectrum.