Union Budget 2024-25: Here are 5 Key Expectations from FM Nirmala Sitharaman

Union Budget 2024-25: As the Parliament's Budget Session begins on July 22, Union Finance Minister Nirmala Sitharaman is all set to present the budget on July 23. Anticipation is building across various sectors as the Union Budget 2024 announcement approaches. Against the backdrop of evolving market dynamics, this budget is eagerly awaited by industries, economists, and the general public alike.

With the election now out of the way, the next big event in India is the Union Budget. Early insights suggest the government faces the strongest opposition seen in a decade. While the coalition government has a comfortable majority, upcoming state elections are likely to influence budget decisions. As a result, the budget is expected to be a blend of growth initiatives and populist measures. Let's have a look at the key expectations as the government prepares to unveil its financial roadmap for the upcoming fiscal year.

Date and Timings of the Union Budget 2024-25

The Union Budget for 2024-25 will be presented in the Lok Sabha on July 23. Finance Minister Nirmala Sitharaman is set to begin her Budget Speech at 11 am. This will mark Sitharaman’s seventh consecutive Budget Speech, making her the second finance minister in India’s history to achieve this.

Here are 5 key expectations from Budget 2024-25

1. Focus on Economic Recovery and Growth

Stakeholders are hopeful that the budget will introduce measures to accelerate growth and stabilize the economy. There is an emphasis on incentivizing industries to boost production, enhance exports, and generate employment. Additionally, initiatives aimed at supporting small and medium-sized enterprises (SMEs) are expected, given their significant role in the economic landscape.

2. Infrastructure Development

Infrastructure development has always been a cornerstone of India's growth strategy. This year, the spotlight is on the expansion of transportation networks, urban infrastructure, and rural development projects. Increased allocation for roadways, railways, and digital infrastructure is anticipated, aiming to enhance connectivity and support long-term economic growth. The government may also introduce public-private partnership (PPP) models to expedite these projects.

3. Tax Reforms and Relief

Taxpayers are eagerly awaiting reforms that could simplify the tax structure and provide relief. The middle class, in particular, is hoping for increased income tax slabs and higher exemptions to boost disposable income. Corporates are also looking for rationalization in corporate tax rates and simplification of compliance procedures to foster a business-friendly environment. These changes could potentially stimulate consumption and investment, driving economic momentum.

4. Emphasis on Green and Sustainable Development

With global attention on climate change, there is a growing expectation for the Union Budget to emphasize green and sustainable development. Investments in renewable energy, electric vehicles (EVs), and sustainable agriculture practices are anticipated. Incentives for businesses adopting eco-friendly measures and stricter regulations for carbon emissions could be on the agenda, aligning with India’s commitments under the Paris Agreement.

5. Strengthening the Healthcare Sector

The pandemic underscored the need for a robust healthcare system. Hence, significant investments in healthcare infrastructure, research and development, and medical education are expected. The budget might introduce policies to enhance public health facilities, promote health insurance penetration, and support the pharmaceutical industry. Strengthening the healthcare sector is crucial for ensuring resilience against future health crises.

As we look forward to the Union Budget, a careful balancing act between growth-driven initiatives and necessary populist measures is expected. The government's ability to address these expectations amid evolving market dynamics will be crucial in shaping India's economic trajectory in the coming years. The emphasis on digital infrastructure, fiscal discipline, and support for startups and manufacturing reflects a comprehensive approach to fostering sustainable economic development. While the specific allocations and policy decisions will soon be revealed, these areas of focus could provide a clear indication of the government's priorities in steering the country's economic trajectory forward.