Budget 2024: Tax Policy Changes Likely In July, Says EY India's Pranav Sayta
The Finance Minister is betting on the fact that good macros will bring in foreign investment, he says.
There were no changes in tax slabs and policies in the interim Union budget 2024, but there may be sops announced offering relief in the July announcement, according to Pranav Sayta, partner at EY India.
Finance Minister Nirmala Sitharaman presented the interim budget 2024 on Thursday with no changes in tax policy, citing precedence.
Sayta expects some good news for taxpayers in the July budget, he told NDTV Profit. "It is not a surprise that tax policy changes will be announced only in July."
The government wants to build some trust with taxpayers. Therefore, taxpayer-friendly measures from a compliance standpoint are what she is hinting at, he said. "But the real measure on tax will come in the main budget."
Sitharaman said that fiscal deficit in the current financial year is estimated at 5.8% of the gross domestic product, below the budgeted 5.9%. She pegged the next fiscal's target at 5.1%, with an aim to reduce it to 4.5% by FY26.
Sayta said the government had been very prudent on the macros. "We are already at a deficit-conservative path when the whole world seems to be still with a lot of deficit."
The Finance Minister is betting on the fact that good macros will bring in foreign investment, and will also push the Indian private sector, he said. "I think that is the big bet she is making on the growth front."
If the world feels that India's fiscal and macro policies are going to be in continuity, it might give a big push to private capital expenditure, including foreign investments, according to Sayta.
