KEY HIGHLIGHTS
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One Crore Youth Will Directly Benefit From Our Internship Scheme, Finance Minister
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Involvement Of Private Sector In First Three Employment Schemes Is Almost Passive, Says Finance Secretary
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Massive Assistance Is Being Given To Informal Sector, Says Chief Economic Advisor
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Bihar CM On Budget Allocation To State
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Sitharaman On Investments From China
WATCH | FM Sitharaman's Press Conference
The Intention Behind Tax Collection Of Asset Classes Is Simplification, Says Finance Minister
Explaining the rationale behind tax collection of asset classes Finance Minister said, "The intention is not revenue generation but simplification. So that no one has confusion on it."
Looking At Providing Input Support To Farmers, Finance Minister
It is important to reach to the farmers and today they require better inputs, technology and high-quality seeds. The 109 seeds that have been developed by the Indian scientist will be given to the framers by the government. The government is also looking at giving input support to the farmers.
One Crore Youth Will Directly Benefit From Our Internship Scheme, Finance Minister
The government is working with private sector by offering them incentives to offer jobs to the youth, said Nirmala Sitharaman. The government is also working with the companies to provide ITI training to the youth in the state. She also said that one crore youths will directly benefit as the government will talk to over 500 companies to offer them job through CSR.
Number Of People Subject To Angel Tax Was Very Small, Said Finance Secretary
Talking about the angel tax T.V. Somanathan, Finance Secretary said that hardly anything was collected through it and the number of people subject to the tax was small. He further added that there are other alternatives to Angel Tax in the IT rule.
Involvement Of Private Sector In First Three Employment Schemes Is Almost Passive, Says Finance Secretary
The first three employment schemes are for the people recruited in the private sector, said T.V. Somanathan, Finance Secretary making the involvement of the companies very passive. He further said that they are not being directed to recruit anyone and have no obligation to do anything.
Karnataka CM Expresses Disappointment With The Union Budget
Karnataka CM Chief Minister Siddaramaiah said that the demands of the state were not acknowledged by the central government. He further added that the Rs 5000 crore allocation for Upper Bhadra Project was not followed through by the government.
Union Budget 2024 To Bring Significant Developments For GIFT IFSC, Says MD Of GIFT City
"The Union Budget 2024 brings significant developments for GIFT IFSC. The announcement of a tax-efficient regime for retail funds and ETFs will create new business opportunities for asset management companies in GIFT City. This move is expected to attract investments from NRIs and foreign retail investors into India. We thank the Union government for its continued support in helping GIFT City become a truly vibrant global financial centre," said Tapan Ray, MD and Group CEO, GIFT City.
Massive Assistance Is Being Given To Informal Sector, Says Chief Economic Advisor
The schemes in the budget are an incentive for informal sector to become part of formal sector said V. Anantha Nageshwaran, Chief Economic Advisor. The schemes will offer support and massive assistance to the informal sector, he added.
According to him the boost in the formal sector will also spill over to the informal sector.
Consumption Growth Comes From Employment Generation, Says Chief Economic Advisor
The move by the government to boost employment generation will also in turn help in increasing consumption, according to V. Anantha Nageshwaran, Chief Economic Advisor. With more jobs there will be more income generated and it will help in the growth of consumption he added.
Incentive's In Budget 2024 Will Help In Bulk Job Creation, Says Chief Economic Advisor
"Job creation agenda in budget extremely comprehensive," V. Anantha Nageshwaran, Chief Economic Advisor told NDTV Profit. All the five schemes announced in the budget will collectively create significant jump in economy. The incentives offered in these schemes will also help in bulk job creation.
Any Change In Lower Tax Slab Impacts Everyone, Says Sanjeev Malhotra
"Any change in lower tax slab impacts everyone beyond the tax slab," Sanjeev Malhotra, Revenue Secretary told NDTV. Explaining further he said that if there is an increase in the slab offers benefits for everyone with an income above Rs 7 lakh.
Budget 2024 To Encourage SMEs And MSMEs To Participate In The Economy, Says SBI Chairman
SMEs and MSMEs will be encouraged to participate in the economy due to the budget announcements, said Dinesh Kumar Khara SBI Chairman. He is also hopeful that the MSME lending will be boosted post the budget.
Budget 2024: Focus Back On Thermal Power, Modular Nuclear Projects
Even as the Union government's focus on renewable energy continues, Finance Minister Nirmala Sitharaman announced plans to develop high-efficiency, advanced supercritical thermal power projects in the country. This technology has already been developed indigenously through a joint venture between NTPC Ltd. and Bharat Heavy Electricals Ltd.
“The joint venture will set up a full-scale 800-megawatt commercial plant using advanced ultra-supercritical technology,” the Finance Minister said in her budget speech.
Read the whole story here.
Budget 2024: Support For Critical Minerals
The central government will set up a critical mineral mission for domestic exploration, recycling of minerals and overseas acquisition of critical mineral assets, Finance Minister Nirmala Sitharaman said in her 2024 Union Budget speech on Tuesday.
The mandate of the mission is said to include technology development, an extended producer responsibility framework, a skilled workforce and a suitable financing mechanism, Sitharaman said.
Read full story here.
Budget 2024: Spending On Government Salaries
The 2024-25 Union Budget has allocated Rs 1,248.91 crore for expenses incurred by the Council of Ministers, the Cabinet Secretariat and the Prime Minister's Office, and for hospitality and entertainment of State guests. The allocated amount is substantially lower than the Rs 1,803.01 crore earmarked in 2023-24.
A total of Rs 828.36 crore has been given for the expenses of council of ministers. This allocation is for expenditure on salaries, sumptuary and other allowances and travel by cabinet ministers, ministers of state and former prime ministers. This also includes a provision for special extra session flight operations for VVIPs.
(Source: PTI)
Budget 2024: What Goes For Tourism
Development of Vishnupad Temple Corridor and Mahabodhi Temple Corridor modelled on Kashi Vishwanath Temple Corridor.
Comprehensive development initiative for Rajgir will be undertaken which holds religious significance for Hindus, Buddhists and Jains.
The development of Nalanda as a tourist centre besides reviving Nalanda University to its glorious stature.
Assistance to development of Odisha’s scenic beauty, temples, monuments, craftsmanship, wildlife sanctuaries, natural landscapes and pristine beaches making it an ultimate tourism destination.
Read full story here.
Budget 2024: Math Supports Economic Growth
Key macro figures in the Union budget 2024-25 indicate continuing fiscal consolidation even as the government focused on creating employment, reskilling of labour and enabling financing for the micro, small and medium enterprises.
The Union government will target a fiscal deficit of 4.9% of the gross domestic product for the current financial year, as compared to a target of 5.1% set in the interim budget, Finance Minister Nirmala Sitharaman announced in her budget speech on Tuesday. For the last fiscal too, the fiscal deficit has been revised to 5.6% of the GDP.
Read full story here.
Bihar CM On Budget Allocation To State
"I have continuously spoken for this (special status), I told them as well (NDA). I told them to give us either a special status or a special package...As a follow-up, they have announced aid for a lot of things...We were speaking of special status and a lot of people said that the provision for special status has been done away with much earlier. So, instead of that, aid should be given for helping Bihar. They have now started it," Bihar CN Nitish Kumar said.
JD(U) is part of the NDA government.
(Source: ANI)
Patna: Bihar Chief Minister Nitish Kumar at the state Assembly House during the Monsoon session, in Patna, Tuesday, July 23, 2024. (PTI Photo)
Patna: Bihar Chief Minister Nitish Kumar at the state Assembly House during the Monsoon session, in Patna, Tuesday, July 23, 2024. (PTI Photo)
FM Sitharaman On Capital Gains Tax
On 12.5% tax on long-term capital gains, Union Finance Minister Nirmala Sitharaman says, "We wanted to simplify the approach to taxation - also for the capital gains. Second, if anything, the average taxation has actually come down when we say it is 12.5%. We have worked out for each of the different asset classes...The point that we brought it down from below the average to 12.5% encourages investment in the markets..."
Budget 2024: Key Insights
Finance Secretary On Fiscal Consolidation
"Commitment is to endeavour to reduce debt-to-GDP ratio every year. Can say that it is most likely that fiscal deficit will be not more than 4.5% in FY26"
Sitharaman On Investments From China
"Economic Survey gave its view on investments from China. These investment goes through review, like those from other neighbouring countries. The survey indicated that it is time to open up, but it (suggestion) is at an arm's distance. That does not mean I am disowning the suggestion."
Uday Kotak Reacts To Budget 2024
"Well thought out budget. Fiscal discipline maintained. Right focus on employment and Msme. Capital gains tax smartly simplified, leaning in favour of revenue. STT increase is necessary sand in the wheels of high derivative volumes. Paradigm shift of saver to investor continues. (sic)"
Andhra CM Naidu Reacts To Rs 15,000 Crore Budget Grant
"On behalf of the people of Andhra Pradesh, I thank the Hon'ble Prime Minister, @narendramodi Ji and Hon'ble Union Finance Minister, @nsitharaman Ji, for recognising the needs of our State and focusing on a Capital, Polavaram, industrial nodes and development of backward areas in AP in the union budget of FY 24-25. This support from the Centre will go a long way towards rebuilding Andhra Pradesh. I congratulate you on the presentation of this progressive and confidence-boosting budget. (sic)"
Rupee Ends At Record Low
The local currency weakened 3 paise to close at 83.69 against the US dollar after the budget.
Railway Budget At Rs 2.55 Lakh Crore
The railway's expenditure budget is Rs 2,55,390 crore in FY25, the highest ever, a Finance Ministry official said.
FM On Job Growth Scheme
"PM package has five different schemes. Scheme for first-timer employees is very innovative. We want to provide first-timers 1 month salary as direct benefit transfer. Will identify when an employer picks up a first timer through EPFO credit. Applicable individuals can receive up to Rs 15,000 through first-timer subsidy."
Markets Close Lower After Budget
Benchmark indices closed lower after budget fails to enthuse markets.
Push Towards Industrial Corridor, Says FM
"Other than Awaas Yojana, Sadak Yojana, there is major push towards industrial corridors. Rural infrastructure is also seeing improvement."
Getting More FDI After Tax Cuts
"We expect more foreign company to invest in India after corporate tax cut. Earlier, the gap between domestic and foreign companies was big," revenue secretary said.
Old Tax Regime Under Review, FM Says
"Our ambition to so simplify the personal income tax regime. I cannot comment on sunset of old tax regime. The review in underway."
Average Taxation Come Down To Lowest In Several Years, Says FM
"The average taxation has come down to lowest in last several years. Revenue mobilisation is not just tax based; there is also non-tax based mobilisation."
Math Supports Economic Growth
Key macro figures in the Union Budget 2024-25 indicate continuing fiscal consolidation even as the government focused on creating employment, reskilling of labour and enabling financing for the micro, small & medium enterprises. The Union government will target a fiscal deficit of 4.9% of the gross domestic product for the current financial year, compared to a target of 5.1% set in the interim budget.
Read full story here
SIAM President Vinod Aggarwal On Union Budget 2024-25
"The Indian Automobile Industry welcomes the continued emphasis on economic growth with several announcements especially the strong fiscal support for infrastructure in the next 5 years. The announcements such as liberal allocation for rural development & infrastructure of Rs 2.66 lakh crores is a welcome step that will boost the rural economy."
Pay Higher Tax On Sale Of Ancestral Property, Family Gold
The indexation available for calculation of any long-term capital gains which is presently available for property, gold and other unlisted assets is now proposed to be removed, according to the Finance Bill presented in the Parliament on Tuesday.
"This will ease computation of capital gains for the taxpayer and the tax administration," it said.
This may mean that holders of real estate and gold over longer periods, entitled to higher indexation benefit, may have to shell out more money in tax.
Read full story here.
Budget 2024: Allocation To Major Schemes
MGNREGA: From Rs 60,000 crore in FY24 to Rs 86,000 crore in FY25
Direct Benefit Transfer- LPG: From Rs 180 crore to Rs 1,500 crore
Lines of Credit under IDEA Scheme: From Rs 1,300 crore to Rs 3,850 crore
R&D Projects: From Rs 840 crore to Rs 1,200 crore
Nuclear Power Projects: From Rs 420 crore to Rs 2,228 crore
PLI for Pharmaceutical Industry: From Rs 1,200 crore to Rs 2,143 crore
Development of Semiconductors and Display Manufacturing: From Rs 3,000 crore to Rs 6,903 crore
Solar Power (Grid): From Rs 4,970 crore to Rs 10,000 crore
Budget 2024: Mobile Phones To Get Cheaper
The government has proposed to reduce customs duty on mobile phones and related parts to 15%, in what is seen as a fillip to local manufacturing.
Read full story here.
Budget 2024: Personal Income Tax Rejig
The government announced on Tuesday an increase in the standard deduction to Rs 75,000 from Rs 50,000 in the Union Budget 2024–25, a move that is expected to benefit salaried individuals, providing them with higher tax savings and greater disposable income.
The standard deduction in the new tax regime was raised from Rs 5 lakh to Rs 7 lakh in the Budget 2019. Initially, the new tax regime did not contain a standard deduction, but this was included as an incentive to move to the new system in Budget 2023.
Read full story here.
CRISIL View On Infrastructure
“Targeted interventions and making the states a focal point for Infra development is one of the key themes. Increased focus on Cities and their all-round development has taken centerstage. Development of Industrial parks, cities as growth hubs, transit oriented development scheme, brownfield development of cities water and sanitation are some of the key announcements in this regard. The allocation to infrastructure ministries has been maintained as in the interim budget. Expending the allocated budgets will be key for this year.”
-- Jagannarayan Padmanabhan, Senior Director & Global Head, Transport, Mobility and Logistics, Consulting, CRISIL Market Intelligence and Analytics.
Budget To Provide Fillip To Startups, PM Modi Says
"This budget has provided new opportunities for startups, innovation ecosystem and young entrepreneurs. The space research fund and abolishing of angel tax is the right step to encourage entrepreneurship."
Modi Hails Internship Scheme For Youth
"The internship scheme will give rural youth the opportunity to work in India's top companies and begin their career with decent earnings."
PM Modi Says Budget Focus On Job Creation, Manufacturing
"The budget will give new scale to education and skill. Job creation will get a boost. It will create new growth opportunities for MSMEs. The budget has focus on both manufacturing and infrastructure."
Budget Will Empower The New Middle Class
"This budget will empower every section of the society. Our government has managed to pull 25 crore people out of poverty. This budget will empower this new middle class," PM Modi said.
Budget 2024: What Gets Cheaper And What Gets Costlier
Nirmala Sitharaman proposed to reduce customs duty on cancer medicines and mobile phones, which will reduce the prices in the retail markets. Import duty on gold and silver has been reduced to 6%, while the duty on platinum has been cut to 6.4%.
Meanwhile, the finance minister has increased the basic custom duty on specified telecom equipment to 15% from the earlier 10%.
Read the full story here.
Budget 2024: Expenditure Of Major Items
Defence: Rs 4,54,773 crore
Rural Development: Rs 2,65,808 crore
Agriculture and Allied Activities: Rs 1,51,851 crore
Home Affairs: Rs 1,50,983 crore
Education: Rs 1,25,638 crore
IT and Telecom: Rs 1,16,342 crore
Health: Rs 89,287 crore
Energy: Rs 68,769 crore
Social Welfare: Rs 56,501 crore
Commerce & Industry: Rs 47,559 crore
Budget 2024: Government Revenue Breakup
Source of government revenue:
Spending of government revenue:
Budget 2024: PM Modi To Address Nation Shortly
Prime Minister Narendra Modi will address the nation shortly to express his views on the Budget 2024-25.
Prime Minister Narendra Modi. (Source: PIB)
Prime Minister Narendra Modi. (Source: PIB)
Budget Reactions: Decisions On Angel And Corporate Tax Endorsed
"Abolishing angel tax is a big positive especially for entrepreneurs, startups and the whole ecosystem, including foreign investors who always wanted in on the private equity and VC funds. Thats a great move indeed."
"Dropping of the foreign companies corporate tax rate from 40% to 35% is welcome. It was expected as well. When the corporate tax rate was cut on Indian companies (in 2019), they had not brought down the foreign companies. That's a good levelling of foreign and Indian companies."
- Pranav Sayta, National Leader International Tax and Transaction Services, EY India
Indexation Benefits On Several Assets Abolished
Indexation benefits on real estate, gold, other non-financial assets abolished
Changes in treatment of long-term capital gains effective from July 23
Gains from non-financial assets to be treated as long-term after 2 years
Rate of taxation on LTCG from non-financial assets at 12.5%
Context: Previously LTCG on non-financial assets were taxed at 20% with indexation benefit
Budget 2024: Check Revised Slabs Under NTR
Securities Tax Hike Not Substantial, Says NSE Chief
The budget refers more to job creation
Some burden has been given to top companies to train more people
There has been only minor change on securities transaction tax, the tax regime remains stable
Increase in STT not very substantial
There has been a lot of critisism on derivatives volume. This is also an outcome of the criticism
- Ashishkumar Chauhan, CEO, NSE
Rupee Weakens To Record Low
The local currency weakened 4 paise to a record low of 83.70 against the US dollar after Union Budget.
Budget 2024: Top 10 Takeaways
Standard deduction in income tax raised to Rs 75,000 from Rs 50,000
New tax regime slabs changed; salaried employee to save up to Rs 7,500
Comprehensive review of Income Tax Act, 1961
Long-term & short-term capital gains tax, STT hiked
Angel tax abolished
Customs duty for mobile phones, gold, cancer medicines, medical equipment slashed
Fiscal deficit cut to 4.9% from 5.1%; better fiscal discipline
Special finance schemes for Andhra Pradesh & Bihar
Multiple job schemes announced with incentives for employers
Special schemes for MSMEs focused on easy access to credit
Budget 2024 Reactions: Rental Housing Plan Gets Thumbs Up
“Government’s plan to implement a policy for rental housing market, is a big step to streamline residential renting market and can open doors to many large real estate players including foreign investors to establish large residential complexes and ensure smooth renting. Guidance to all States to rationalize stamp duty and to give more benefit for women buyers is also a huge welcome step”.
- Harsh Parikh, Partner at Khaitan & Co.
Budget 2024 Reactions: No Compromise On Fisc Great News
"They have tasted success over the years because of the great macro management, they have not compromised on the fiscal deficit at all in fact they have improved significantly so I would give full credit to the Govt for this. Throughout the period and particularly in this budget. Despite all the expectation of welfare measures being higher."
- Pranav Sayta, National Leader International Tax and Transaction Services, EY India
Budget 2024: Key Highlights PDF
Read the key features of Budget 2024-2025. Click on the PDF link below.
Markets Sour On Budget Taxation Tweaks
Indian benchmarks dropped over 1% on midday tracking losses in Larsen & Toubro Ltd., Reliance Industries Ltd. dragged. The benchmarks fell shortly after Finance Minister Nirmala Sitharaman proposed for higher rate of tax in short-term capital gain in its budget speech.
CRISIL View On Internship Scheme
"The comprehensive scheme to provide internship opportunities to one crore youth in the top 500 companies over the next five fiscals will support upskilling of youth by providing them with practical work experienced for 12 months. Companies will have to bear the training cost and 10% of the internship costs are to be used from CSR funds, thereby encouraging the creation of job opportunities. This initiative will increase skilled workforce according to industry needs."
Budget Reaction On GST Proposals
"A large-scale rate rationalisation exercise in GST may trigger a new wave of anti-profiteering complaints, assuming the reduced GST rates take effect before the sunset date of April 1, 2025, as recommended by the GST Council in its last meeting. Companies, especially in the B-to-C space, need to be cautious and mitigate their exposure by learning from past anti-profiteering litigations."
- Sudipta Bhattacharjee, Partner, Khaitan & Co.
Budget Reaction: Rupee Weakens To Record Low
The local currency weakened 2 paise to a record low of 83.68 against the US dollar after budget. The forex market is reacting to capital gain taxation proposals.
FM's Budget Speech Ends, Lok Sabha Adjourned
Income Tax Rejig: Revenue Impact
Revenue of Rs 37,000 crore to be foregone based on tax proposals
Revenue of Rs 30,000 crore to be mobilised based on tax proposals
Total revenue foregone on account of tax proposals at Rs 7,000 crore
Standard Deduction Raised To Rs 75,000
New Tax Regime Slabs Changed
Income of Rs 0-3 lakh to be taxed at 0%,
Rs 3-7 lakh at 5%,
Rs 7-10 lakh at 10%
Rs 10-12 lakh at 15%
Rs 12-15 lakh at 20%
Above Rs 15 lakh at 30%
Salaried employee in New Tax Regime stands to save up to Rs 17,500 in income tax based on changes, says FM.
Budget 2024: Income Tax Rejigs
Deduction of expenditure of employers towards NPS to be raised to 14% from 10% of salary.
Deduction of expenditure up to 14% of salary from income to be provided New Tax Regime.
Securities Transaction Tax Raised
Securities Transaction Tax on futures and options to be raised to 0.02% and 0.1% respectively.
Corporate Tax Cuts For Foreign Firms
The government to reduce corporate tax rate on foreign companies to 35% from 40%.
Angel Tax Abolished!
The Budget proposes to abolish angel tax for all classes of investors, announces Sitharaman in a big decision.
Capital Gains Taxation To Be Simplified, Says FM
Short-term capital gains on some financial assets to attract 20%
Long-term capital gains on financial, non-financial assets to be taxed at 12.5%
To raise limit of exemption of capital gains on some financial assets to Rs 1.25 lakh per year
Listed financial assets held for more than a year to classify as long-term
Unlisted financial assets, non-financial assets must be held for 2 years to classify as long term
Unlisted bonds, debentures, debt MFs, market-linked debentures to be taxed at slab rate
Direct Tax Tweaks
"Two tax exemption regimes for charities are proposed to be merged into one. TDS rate on e-commerce to be reduced from 1% to 0.1%. Credit of TCS proposed to be given in TDS to be deducted in salary."
More Than 2/3rds Of Individuals Availed New Tax Regime, Says FM
Budget 2024: Custom Duty Hikes
To increase customs duty on ammonium nitrate to 10% from 7.5%
To raise customs duty on PVC flex banners to 25% from 10%
To raise customs duty on some specified telecom equipment to 15% from 10%
Budget 2024: Custom Duty Cuts
Customs duty on mobile phones, related parts, chargers cut to 15%
Propose to exempt customs duty on 25 critical minerals, reduce duty on 2
To reduce customs duty on some brood stock, shrimp, fish feed to 5%
To reduce customs duty on real down-filling material from duck or goose
To reduce customs duty on MDI for manufacture of spandex yarn to 5% from 7.5%
Export duty structure on raw hides, skin, leather to be simplified, rationalised
To reduce customs duty on gold, silver to 6%, platinum to 6.4%
To remove customs duty on ferro nickel and blister copper
To remove customs duty on oxygen-free copper for manufacture of resistors
CRISIL View On Capex Plans
"Capex in the first two months of this fiscal was down 14.4% on-year. So, the government’s budgeted target of Rs 11.1 lakh crore means capex will have to grow at a 23.9% clip for the rest of this fiscal. The increased capex assistance of Rs 1.5 lakh crore to states this fiscal – up from 1.3 lakh crore announced during interim budget – will be salutary. The capex for infrastructure sectors is along the lines of the announcement in the interim budget. Over the past three years, the number is higher in absolute terms but lower as a percentage of allocation."
Duties Slashed For Mobile Phone Parts
Customs duty on mobile phones, related parts, chargers cut to 15%.
Cancer Drugs Exempted From Duties
To exempt three more medicines for cancer treatment from customs duty.
FY25 Borrowing Plan
Gross market borrowing in FY25 seen at Rs 14.01 lakh crore
Net market borrowing in FY25 seen at Rs 11.63 lakh crore
Aim to bring fiscal deficit to 4.5% of GDP in FY26
FY25 Fiscal Deficit Seen At 4.9% Of GDP
FY25 total receipts other than borrowings at Rs 32.07 lakh crore.
FY25 total expenditure seen at Rs 48.21 lakh crore.
FY25 net tax receipts seen at Rs 25.83 lakh crore
Taxonomy For Climate Finance
"The government will seek required legislative approval for providing efficient mode for financing leasing of ships, aircraft, pooled funds through variable company capital structure."
CRISIL View On Oilseed Production Target
"India imports ~60% of its edible oil requirement, so the support announced to self-sufficiency in oilseeds production is welcome. Between 2015 and 2023, nine annual oilseed crops have seen a compound annual growth rate of just 7.3%."
Labour Formalisation Plan
"Government to facilitate wide array of services to labour. Comprehensive integration of e-Shram portal with other portals to be undertaken."
Digitalising Land Records In Villages
"Rural land related actions to include assignment of unique land parcel identification number. Land records in urban areas to be digitised with GIS mapping."
Funding Plans For R&D Boost
"The government will operationalise 'Anusandan' national research fund for basic research and prototype development. It will set up a mechanism for spurring private sector-driven R&D at commercial scale with a financing pool of Rs 1 lakh crore."
CRISIL View: On Budget's MSMEs Commitments
"The MSME sector in India is estimated to have a significant funding shortage of Rs 20-25 lakh crore. Banks account for 75% of lending to this segment. Public sector banks will do well to set up in-house, technology-driven underwriting capacity to serve new borrowers and bring them into the formal credit fold."
Funding India's Space Ambitions
Venture capital fund of Rs 1,000 crore to be set up to encourage space technology development, says FM Sitharaman.
Bihar Temples To Be Transformed The Kashi Way
"Government to support development of Nalanda as tourism destination. Comprehensive development of Vishnupad temple corridor and Mahabodhi temple corridor in Bihar will be supported on the lines of the successful Kashi Vishwanath corridor."
The government will also provide support to Odisha for development of tourism destinations.
Himalayan States To Get Support
The Central government will provide assistance to Himachal Pradesh, Uttarakhand and Sikkim for reconstruction, rehabilitation through multi-lateral development assistance, announced Sitharaman.
Assam Gets Budget Support For Flood Management
Government to provide assistance to Assam for flood management, irrigation projects.
FY25 Capex Set At Rs 11.11 Lakh Crore
As announced in interim budget, government has set capital expenditure target of Rs 11.11 lakh crore for FY25. This represents 3.4% of GDP.
"Provision of Rs 1.5 lakh crore for long-term interest free loans made in FY25 for support to states for infrastructure," FM says.
Nuclear Energy Gets Prominent Focus
"Government to partner with partner with private sector to set up Bharat small reactors. Joint venture between NTPC and BHEL to set up full-scale 800 MW commercial plant using AUSC technology. Government to provide required fiscal support for NTPC, BHEL JV."
CRISIL View On Mudra Loan Hike
"The increase in the cap for MUDRA loan classification to Rs 20 lakh was much required given the inflation over the past decade."
Response To Rooftop Solar Scheme
"PM Surya Ghar Muft Bijli launched to install roof-top solar for 1 crore households. The scheme got 1.28 crore registrations, 14 lakh applications."
CRISIL View On Bihar Plans
"The development of the Gaya node along the Amritsar-Kolkata route will offer a major fillip to the Eastern Dedicated Freight Corridor. Ports in eastern India will benefit over the medium term."
Budget Plans For Urban Development
"Transit oriented development programmes for 14 large cities with population above 30 lakh will be formulated. Government to launch scheme to develop 100 streetfood hubs in select cities over five years."
"Encourage states with high stamp duties to moderates rates for all, and also consider further lowering duties for properties purchased by women."
PM Awaas Yojana Urban Spending Plan
"PM Awaas Yojana – Urban 2.0 to cater to 1 crore urban poor with investment of Rs 10 lakh crore and have Central assistance of Rs 2.2 lakh crore over next five years."
Rs 3.3 Lakh Crore Recovered Under IBC: FM
"IBC has resolved more than 1,000 companies resulting in recovery of Rs 3.3 lakh crore to creditors. Steps for strengthening debt-recovery tribunals to be taken."
CRISIL View On Budget's Organic Farming Promotion Plan
"The establishment of 10,000 need-based bio-inputs units will support the area under organic farming, which has increased at a compound annual growth rate of 23% between 1990 and 2023. This comes at a time when chemical fertilisers have been significantly affecting the crop response ratio (quantity of fertilisers used versus yield)."
Mining Auctions Soon
"Government to launch auction of first tranche of offshore blocks for mining. Building on exploration already carried out. To set up critical mineral mission for domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets."
Budget Plan For Industrial Workers
"Rental housing with dormitory-type accommodation for industrial workers to be facilitated in PPP mode with VGF support."
Sitharaman Speech Interrupted By Opposition, Speaker Intervenes
Budget 2024: Paid Internship Programme Announced
"Internship in 500 top companies to be encouraged under 5th new scheme of Modi government. 1 crore youth to benefit from government’s internship scheme. Internship allowance of Rs 5000 per month and one-time assistance of Rs 6,000 to be provided under internship scheme. Companies to bear training costs from their CSR funds under govt's internship scheme."
Export Promotion For MSMEs
"SIDBI to open new branches to serve more MSMEs over three years. SIDBI to open 24 new branches in FY25. To enable MSMEs to sell products in international markets, e-commerce export hubs to be set up."
Mudra Loan Provision Hiked
PM Mudra loans' limit to be enhanced to Rs 20 lakh from current Rs 10 lakh for those who've paid previous loans under 'Tarun' category.
Budget Offerings For MSMEs
"Credit guarantee scheme for MSMEs in manufacturing to be introduced. Credit guarantee scheme for MSMEs to operate on pooling of credit risks. New mechanism for continuation of bank credit to MSMEs during stressed periods to be introduced. Credit availability for MSMEs during stressed period to be provided through from government promoted fund."
Budget 2024: Rural Infra Spending
"Made provision of Rs 2.66 lakh crore for rural development including rural infrastructure."
Budget 2024: Women-Focused Schemes
"Allocation of over Rs 3 lakh crore made for schemes benefiting women development."
CRISIL View On Budget Announcements For Agriculture
"The introduction of 109 high-yielding, climate-resilient varieties of seeds is salutary. It will reduce production volatility and help stabilise prices over the medium term. This is crucial considering the increasing incidents of inclement weather over the past few years, which have impacted crop yields and contributed to food inflation."
"Setting up of digital agriculture infrastructure, annual digital crop survey and mapping of farmers to their land parcels will facilitate better credit risk assessment, and enhance formal credit penetration in agriculture, which stands at around 60% today."
Budget 2024: Andhra Pradesh Gets Rs 15,000 Crore Grant
"Recognising Andhra Pradesh’s need for capital, to facilitate support through multi-lateral development agencies, Rs 15,000 crore to be arranged for Andhra Pradesh in FY25 for development of capital city at Amaravati."
Budget 2024: Bihar Gets Big Commitments
Patna-Purnya expressway, Buxar-Bagalpur expressway, Bodhgaya-Rajgir-Vaishali-Darbanga spurs, and additional two-lane bridge over Ganga at Baksar at Rs 26,000 crore. Power projects, including 2400 MW power plant at Pir Payanti to be taken up at Rs 21,400 crore.
Budget 2024 Looks East
"States in Eastern part of the country to be targeted under scheme ‘Purvodaya’. Bihar, Jharkhand, Odisha and Andhra Pradesh to benefit from ‘Purvodaya Scheme’."
BJP has key allies JDU in Bihar and TDP in Andhra Pradesh.
Youth Skilling Scheme Provision Hiked
Model skill loan scheme to be revised to facilitate loans up to Rs 7.5 lakh with guarantee from government promoted fund. Model skill loan scheme to benefit 25,000 students per year.
Budget 2024 Theme: It's Jobs Jobs Jobs!
Budget 2024 Plan For Job Growth
Incentive to be provided at specified scale both to employee, employer in first four years of employment, says FM.
"All employment within salary of Rs 1 lakh per month to be counted. Government to reimburse to employers Rs 3,000 per month towards. EPFO contribution for two years for each additional employee."
3 New Schemes For Employment Generation
"Government to set up 3 schemes for employment generation. Scheme for first timers to provide 1 month wage to all persons newly entering workforce in all sectors. First time employment scheme to benefit 2.1 crore youths."
Budget 2024 Agriculture Allocation
Rs 1.52 lakh crore will be set aside for agriculture, allied sectors in FY25, says Sitharaman.
FM Says Kisaan Credit Card To Expand
"Issuance of Jan Samarth-based Kisaan credit cards to be enabled in five states."
Budget Plans For Agricultural Output
"The government will strengthen production, storage, marketing of oil-seeds. Large-scale clusters for vegetable production to be developed closer to consumption centres. Digital crop survey for Kharif to be taken up in 400 districts in FY25."
Budget Plan For Farmers
"Government to undertake comprehensive review of agricultural research and focus on developing climate resilient varieties in agriculture. New 109 high yielding, climate resilient varieties to be released to farmers. 1 crore farmers to be initiated into natural farming over 2 years. 10,000 need based bio-input centres to be established."
Nine Priorities In Budget 2024
Productivity and resilience in agriculture
Employment and skilling
Improved human resources, social justice
Manufacturing and services
Urban development
Energy security
Infrastructure
Innovation, research and development
Next generation reforms
Budget 2024 Focus: Youth Skilling, Jobs
"Budget to focus on employment, skilling, MSMEs, middle class. Rs 1.48 lakh crore provision made for education, employment, skilling."
This Budget envisages sustained focus on 9 priorities:
Productivity and resilience in agriculture
Employment and skilling
Improved human resources, social justice
Manufacturing and services
Urban development
Energy security
Infrastructure
Innovation, research and development
Next generation reforms
FM On Previous Interim Budget Progress
"Steps being taken to ensure supplies of perishable goods reach market in timely manner. The poor, women, youth, and farmer were focus of Interim Budget. PM Garib Kalyan Anna Yojana was extended by 5 years, benefiting more than 80 crore people. Schemes announced in Interim Budget are well underway."
India A Shining Example In Gloomy World: FM
"Global economy is still in the grip of policy uncertainties. India’s economic growth continues to be the shining exception, will remain so in years ahead. India’s inflation continues to be low, stable, moving towards 4% target."
Nirmala Sitharaman Begins Budget Speech In Lok Sabha
"The people of India have reposed their faith in government led by PM Modi. We are grateful for the support, faith, trust of the people in our policies. We are determined to ensure all Indians make substantial progress to realise their aspirations."
Lok Sabha Speaker Introduces Foreign Delegates
Lok Sabha Speaker introduced foreign dignitaries who will observe the budget session.
Lok Sabha Convenes For Budget Session
Lok Sabha has convened for Finance Minister's budget speech. Speaker Om Birla has started his address.
WATCH LIVE | Finance Minister's Budget Speech
Budget 2024: 15 Minutes To Go!
Lok Sabha is expected to convene shortly for Finance Minister's Budget speech.
Budget 2024: 'Dahi-Shakkar' Moment At Rashtrapati Bhavan
Budget 2024: Lok Sabha To Convene Shortly
Nifty, Sensex Trade Near Day's Low Ahead Of Budget
HDFC Bank and Reliance Industries were the top draggers. Broader indices also slipped in losses. Nifty Realty was up 0.38%, the most among sectoral indices.
Union Cabinet Approves Budget 2024
The Union Cabinet headed by PM Modi meets in Parliament has approved the Union Budget ahead of its presentation by Finance Minister Nirmala Sitharaman.
Union Cabinet Headed By PM Modi Meets In Parliament
The Union Cabinet headed by PM Modi meets in Parliament to approve the Union Budget ahead of its presentation by Finance Minister Nirmala Sitharaman.
NDA Ministers Arrive At Parliament
Unions Ministers and other MPs have arrived at the Parliament for the Budget session today. PM Narendra Modi and Nirmala Sitharaman are expected to come shortly.
Budget 2024: Andrew Holland On Expectations
"There can be rally in Indian equities if there are no changes in taxes. But given RBI and SEBI concerns on retail participation, private capex cannot pickup up if bank deposits slow. It can create margin pressure on banks," said Andrew Holland, CEO, Avendus Capital Public Markets Alternate Strategies LLP.
"Housing should have focus, as well as rural recovery. They have to be fiscally prudent. Markets have priced in everything."
One Hour To Go For Budget 2024!
Finance Minister Nirmala Sitharaman will head to Parliament shortly to present the Union Budget 2024. The cabinet is expected to meet before her Lok Sabha speech.
Budget 2024: Sitharaman Meets President
Finance Minister Nirmala Sitharaman met President Droupadi Murmu at Rashtrapati Bhavan, ahead of the Budget presentation at 11 a.m. in Parliament.
Budget 2024: UBS Expects Tighter Fiscal Consolidation
"We expect government to show up better fiscal consolidation. We expect fiscal deficit 4.9%-5% after RBI dividend transfer," said Tanvee Gupta Jain, UBS India Economist.
She also expects double-digit growth in government capital expectation to support rural recovery.
Nomura On Implications Of Economic Survey On Budget 2024
Key highlights of Nomura's take on Economic Survey 2024 released on Monday.
Fiscal consolidation to be still key.
Nominal growth likely unchanged, survey forecasted FY25 real GDP growth at 6.5-7.0%.
Nominal GDP growth assumption of 10.5% YoY made in interim budget to be retained.
Expired tax cuts for manufacturing firms may not be extended.
Commentary suggests that govt support to the farm sector is already adequate.
Edelweiss' Radhika Gupta's Budget Expectation
Edelweiss Mutual Fund MD and CEO Radhika Gupta said she expects tweaks in short-term capital gains in the Budget today. She also said taxation on arbitrage funds is unlikely to happen.
Budget 2024: Markets Open Higher
Indian benchmarks recovered losses from past couple of session as Mahindra & Mahindra Ltd., and Larsen & Toubro Ltd. rose while investors keenly await Budget 2024.
Budget 2024 Photo-Op At North Block
Finance Minister Nirmala Sitharaman walked out of the finance ministry with a tablet in a red sleeve and the national emblem. From the traditional briefcase to a "bahi-khata" and now a 'Made in India' tablet, the budget is now a paperless document.
New Delhi: Union Finance Minister Nirmala Sitharaman showcases a red pouch carrying the Budget documents, outside the Finance Ministry in North Block before leaving for the Parliament where she will table the Union Budget 2024-25, in New Delhi, Tuesday, July 23, 2024. (PTI Photo/Shahbaz Khan)
New Delhi: Union Finance Minister Nirmala Sitharaman showcases a red pouch carrying the Budget documents, outside the Finance Ministry in North Block before leaving for the Parliament where she will table the Union Budget 2024-25, in New Delhi, Tuesday, July 23, 2024. (PTI Photo/Shahbaz Khan)
Budget 2024: Benchmark Bond Opens Flat
The yield on the benchmark 10-year government bond opened flat at 6.97%, ahead of Budget. It closed at 6.97% on Monday.
Source: Cogencis
Budget 2024: Rupee Opens Higher
The local currency strengthened by 2 paise to open at 83.64 against the US dollar, ahead of Budget. It closed at 83.66 on Monday.
Source: Bloomberg
Budget 2024: Timeline Of Finance Minister
The customary Budget team photo of the Finance Minister and other top officials will be taken in North Block at 9:00 a.m.
The minister will reach the president's residence along with her team, at 9:10 a.m. to present the budget. Then, she will head to Parliament at 9:45 a.m. A cabinet meeting will be held there at 10:15 a.m.
The budget will be presented at 11:00 a.m.
Budget 2024: Sitharaman Arrives At Finance Ministry
Finance Minister Nirmala Sitharaman has reached the Ministry of Finance. Minister of State for Finance Pankaj Chaudhary, Chief Economic Advisor V Anantha Nageswaran and other top officials are also present.
Budget 2024: Sitharaman Leaves For North Block
Finance Minister Nirmala Sitharaman left her residence. She will present the Union Budget today at the Parliament.
Meanwhile, Chief Economic Advisor V Anantha Nageswaran arrived at Ministry of Finance, ahead of Union Budget presentation.
Ahead Of Budget 2024: GIFT Nifty Trades Above 24,500
At 8:30 a.m., the GIFT Nifty was trading 5 points, or 0.01%, higher at 24,540.00.
Budget 2024: Key Numbers To Watch Out For
Fiscal Deficit: The budgeted fiscal deficit, which is the difference between the government expenditure and income, for the current fiscal is 5.1% as projected in the Interim Budget in February, against 5.8% in the last fiscal year. The full Budget is expected to provide better-than-earlier projections as there has been tax buoyancy. The government has projected fiscal deficit at 4.5% of the GDP in FY26.
Capital Expenditure: The government's planned capital expenditure for this fiscal year is budgeted at Rs 11.1 lakh crore, higher than Rs 9.5 lakh crore in the last fiscal year. The government has been pushing infrastructure creation and also incentivising states to step up capex.
Tax Revenue: The Interim Budget had pegged gross tax revenue at Rs 38.31 lakh crore for 2024-25, an 11.46% growth over the last fiscal. This includes Rs 21.99 lakh crore estimated to come from direct taxes (personal income tax + corporate tax), and Rs 16.22 lakh crore from indirect taxes (customs + excise duty + GST).
GST: Goods and Services Tax (GST) collection in 2024-25 is estimated to rise to Rs 10.68 lakh crore, an increase of 11.6%. The tax revenue figures will have to be watched out for in the final Budget for the 2024-25 fiscal year.
Borrowing: The government's gross borrowing Budget was Rs 14.13 lakh crore in the current financial year as per the Interim Budget. The government borrows from the market to fund its fiscal deficit. The borrowing number will be watched by the market, especially on the back of more-than-expected dividend from the RBI and financial institutions.
Nominal GDP: India's nominal GDP growth (real GDP plus inflation) in the current fiscal year is estimated to be 10.5% to Rs 327.7 trillion as per the Interim Budget. In view of expected normal monsoon, improvement in revenue collections and pick up in rural consumption, is expected that there could be upward revision in growth estimate. Real GDP growth in current fiscal is projected at 7.2%, as per the RBI.
Dividend: The interim Budget had projected Rs 1.02 lakh crore from RBI and financial institutions. This will be revised upwards as the RBI has already made surplus transfer of Rs 2.11 lakh crore earlier in May.
At the same time, Rs 43,000 crore expected to be garnered from CPSEs.
Spotlight would also be on spending on key schemes, like NREGA, as well as key sectors like health and education.
(With PTI inputs)
Budget 2024: Process In Parliament
Finance Minister Nirmala Sitharaman will lay on the table, a statement (in English and Hindi) of the estimated receipts and expenditure of the government, for the year 2024–25 in the Rajya Sabha. She will table the Budget one hour after the conclusion of the presentation of the Union Budget 2024-25 in the Lok Sabha.
The minister will also lay on the Table, under subsection (1) of Section 3 of the Fiscal Responsibility and Budget Management Act, 2003, a copy each (in English and Hindi) of the following papers:
(i) Medium-term Fiscal Policy cum Fiscal Policy Strategy Statement;
(ii) Macro-Economic Framework Statement.
Sitharaman will further lay on the table, statements (in English and Hindi) of the estimated receipts and expenditure (2024-25) of the union territory of Jammu and Kashmir (with legislature).
Budget 2024: Stocks On Markets' Radar From Key Sectors
As India’s Finance Minister unveils the Union Budget, all eyes will be on key sectors and themes like infrastructure, consumption and public sector companies. Additionally, market watchers expect that this might propel the equity benchmarks to surpass its landmark levels.
Investors have already begun adjusting their positions in the equity market, as the 10-day volatility of key indices is seeing mild upticks going into the budget announcement. Market swings are expected to rise amid these circumstances, especially with the quarterly earnings that recently began with the information technology majors.
Click here to read the whole story.
Budget 2024: State Of Government Capex So Far
According to the Economic Survey, capital expenditure of the Union Government increased 2.2 times from fiscal 2021 to fiscal 2024, and that of state governments increased by 2.1 times.
It must be noted that the infrastructure push of the government has led to a rise in capex, the Survey noted.
If one were to see the breakup of this, the gross budgetary support to railways and National Highway Authority of India increased from 36.4% in March 2021 to 42.9% in March 2024.
Click here to read the whole story.
Economic Survey 2024 Projects 6.5-7% GDP Growth
India's real gross domestic product growth is estimated at 6.5-7% for the financial year ending March 31, 2025, according to the latest economic survey report. "The survey conservatively projects a real GDP growth of 6.5–7%, with risks evenly balanced, cognizant of the fact that the market expectations are on the higher side," the report said.
Domestic growth drivers have supported economic growth in FY24 despite uncertain global economic performance, the survey said, adding that improved balance sheets will help the private sector cater to strong investment demand.
However, private capital formation after good growth in the last three years may turn slightly more cautious because of fears of cheaper imports from countries that have excess capacity, the survey said.
Click here to read the whole story.
Union Budget Trivia
Here are nine important facts about the Union Budget and its historical context in independent India:
1. First Budget: The inaugural Union Budget of independent India was presented on November 26, 1947, by the nation's first finance minister, RK Shanmukham Chetty.
2. Most Budgets Presented: Former Prime Minister Morarji Desai holds the record for presenting the highest number of budgets, totalling 10 during his tenure as Finance Minister under Prime Ministers Jawaharlal Nehru and Lal Bahadur Shastri.
3. Second Highest Number Of Budgets: P Chidambaram, former finance minister, presented the budget on nine occasions, spanning various governments and economic contexts.
4. Third Highest Number Of Budgets: Pranab Mukherjee, another former finance minister, presented eight budgets during his tenure, including five consecutive ones from 2009 to 2012.
5. Manmohan Singh's Tenure: Former Prime Minister Manmohan Singh, known for his economic reforms, presented five consecutive budgets between 1991 and 1995.
6. Longest Budget Speech: Nirmala Sitharaman holds the record for delivering the longest budget speech, lasting two hours and forty minutes during her presentation on February 1, 2020.
7. Shortest Budget Speech: The shortest interim Budget speech was delivered by Hirubhai Mulljibhai Patel in 1977, totalling just 800 words.
8. Timing Change: Traditionally presented at 5 p.m. on the last day of February to align with colonial-era practices, the Budget timing was changed to 11 am in 1999 during Yashwant Sinha's tenure as finance minister.
9. Shift to February 1: In 2017, the Budget presentation date was shifted to February 1 to expedite the parliamentary approval process and facilitate budget implementation from the start of the fiscal year on April 1.
Union Budget 2024: Key Terms And Concepts
Gross Domestic Product
GDP represents the total market value of all goods and services produced within the country in a specified period. It serves as a crucial indicator of the country's economic health and standard of living.
Inflation
Inflation denotes the rate at which the general price level of goods and services rises, leading to a decrease in the purchasing power of a nation's currency. It is closely monitored by policymakers to ensure economic stability.
Fiscal Consolidation
This policy aims at reducing government deficits and controlling the accumulation of debt, thereby fostering fiscal discipline.
Fiscal Deficit
When a government's expenditures exceed its revenues, excluding borrowings, it results in a fiscal deficit. This deficit, if not managed effectively, can lead to economic instability.
Revenue Deficit
A situation where actual revenues fall short of expected revenues, leading to a deficit when expenditures exceed the available revenue.
Government Borrowing
The funds borrowed by the government to finance its expenditures and investments in public services and infrastructure.
Disinvestment
The strategic sale or liquidation of government assets or subsidiaries, aimed at optimizing returns on investments.
Gross Fixed Capital Formation
The total value of investments in fixed assets such as buildings, machinery, and infrastructure, excluding land sales.
Monetary Policy
Controlled by the Reserve Bank of India, it regulates the money supply and interest rates to achieve economic stability and growth.
Fiscal Policy
The government's use of taxation and spending to influence economic conditions, often working in conjunction with monetary policy.
Purchasing Power Parity
A theory that adjusts exchange rates between countries to account for differences in purchasing power, ensuring fair comparisons of living standards.
Value Added Tax
A consumption tax levied on the value added to a product at each stage of its production and distribution.
Goods and Services Tax
An upcoming comprehensive indirect tax that aims to replace multiple state and central taxes to streamline the taxation system.
Union Budget 2024: Sitharaman's Seventh In A Row
Finance Minister Nirmala Sitharaman will present her seventh Union Budget today. She was first appointed to her job by Prime Minister Narendra Modi in 2019 after the BJP's return to power.
Sitharaman retained her role in the third Modi government, as did all of the other top ministers like Amit Shah, Rajnath Singh and S Jaishankar.
Before her, the finance ministry was led by the late Arun Jaitley in the first Modi government.
Sitharaman presented the budget in 2019, 2020, 2021, 2022, 2023, and the interim budget in February this year—adhering to the protocol that restricts a full Budget announcement just before general elections.
Union Budget 2024 To Be Tabled Today
Finance Minister Nirmala Sitharaman will present the Union Budget 2024 in the Lok Sabha on Tiuesday. This will be the first budget after the Narendra Modi government won its third term and Sitharaman's seventh presentation in a row. It will be tabled in the Lok Sabha at 11:00 a.m.
The budget comes six months after the government passed an interim spending bill in February, as per convention, before the Lok Sabha election in summer.
The National Democratic Alliance returned to power in June with a reduced majority. The Bharatiya Janata Party is reliant on allies in Parliament to pass legislation.
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