Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget 2024-25 on July 23. The Budget, which is going to be her 7th, is expected to expected to push growth apart from providing relief to various sections of the society. Demands are coming in to the government ranging from tax relief for middle class to the sector-specific needs.
On Thursday, PM Narendra Modi also met the country’s eminent economists to discuss budget and the focus was given to the job creation. This will be the first major economic document of the Modi 3.0 government, which, among other things, is expected to lay the road map for making India a developed nation by 2047.
The economy has recorded a growth rate of 8.2 per cent in 2023-24 Earlier in February, Sitharaman came out with an interim budget for 2024-25 in view of the Lok Sabha elections.
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Budget Expectations from Wealth Management Sector
“As we approach the 2024 India Budget, we are cautiously optimistic about the potential measures that will be announced. We believe this budget presents a pivotal opportunity to bolster economic growth and investor confidence. We anticipate the government’s focus on stimulating key sectors such as infrastructure, healthcare, and technology, which are critical for long-term sustainable development. An important announcement that we expect is on ESOPs (Employee Stock Ownership Plans). These are employee incentives that companies use to attract, reward, and retain talent. ESOPs also enable employees to become shareholders and benefit from the company’s growth. Most of the new generation companies give part of company stake as ESOPs to senior employees, who work as well as promoters, but end up losing 40% value vis-a-vis promoters who can enjoy long-term capital gains (LTCG) advantage on equity. This situation needs to be rectified to enable them to earn higher margins,” Swati Saxena, founder and CEO, 4Thoughts Finance, a wealth management firm.
Additionally, the re-investment from sale of startups is exempted from tax only for Rs 10 cr investment in real estate. However, there is a need to encourage startup investments and make the sector more appealing. One way could be to enable re-investment in startups to get a boost through a tax exemption. We also see the automotive industry looking forward to some key measures in the upcoming budget, especially with the Faster Adoption and Manufacturing of Electric Vehicle (FAME). Increased support in R&D of the EV sector can also help boost India as a global leader in EV Technology. The budget can also ensure greater sync between Dividend Distribution Tax (DDT), which is very high, and Long-Term Capital gains on equity which is very low. All these measures would prove beneficial to the liquidity availability in the economy and ensure its healthy growth, she added.
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Budget 2024 Date: Budget Session of Parliament To Be Held Between July 22 and August 12
Parliament’s Budget Session will be held between July 22 and August 12, and Finance Minister Nirmala Sitharaman will present the Union Budget 2023-25 on July 23. It will be her 7th annual financial statement in a row.
The government will likely present the Economic Survey on July 22. This will be the first full budget of the Modi Govt 3.0.
An interim budget was presented on February 1, 2024, due to the Lok Sabha polls, which were held in April-June.
Nirmala Sitharaman on June 12 took office for her second consecutive term as the minister of finance and corporate affairs.
After taking charge as the finance minister in the Modi 3.0 government, Sitharaman highlighted the objectives and outlined how the 2024 full budget will include various aspects of the Indian economy.