Budget 2024: Expectations For Different Sectors In The Upcoming Budget (image-X/FinMinIndia)
With Finance Minister Nirmala Sitharaman set to present the first full Union Budget of the Prime Minister Modi-led government on July 23, expectations are high that there will be some relief on the income tax front and a higher allocation of capital expenditure with an aim to boost rural demands.
The primary expectations are for important sectors including defence modernization, healthcare, infrastructure development, and taxes for FY25.
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Personal Income Tax – Based on Fisdom Research’s recent report, income tax slabs are expected to be revised on a basic exemption level to help the middle class. Adjustments to the capital gain structure and a rise in the standard deduction are also expected.
FMCG And Retail Sector – With the current GST rate on basic raw materials and final products at 5 percent, a significant Input Tax Credit (ITC) blockage for manufacturers, the average flow deficit stands at 10–15 percent. The FMCG sector hopes for the government to address the GST structure and reduce the tax rates for the benefit of the middle class.
Education Sector – Greater budgetary allocation is expected for the growth of the education sector. Harish Sanduja, Director – Schools and IT, Seth Anandram Jaipuria Group of Educational Institutions, emphasised greater inclusion of technology and infrastructure by creating e-learning platforms. He also added that the professional development of teachers is another crucial aspect that should be addressed in the budget.
Railways – Investments to upgrade and extend the railway lines, including station renovations, the installation of contemporary trains, and the installation of new lines, are also expected.
Infrastructure – The fiscal deficit target is expected to be reduced below 5 percent from the 5.1 percent target in the interim budget. To reduce supply bottlenecks, infrastructure is projected to be in focus. According to Murthy Nagarajan, Tata Asset Management,
Logistics Sector – As per Raghav Singhal, the Executive Director of Om Logistics, firms focused on sustainable logistics are interested in specific financial support and waivers to help the transition to greener practices. Clear communication about policies such as the PM Gati Shakti and the National Logistics Policy will provide necessary transparency, and help MSME-based logistics firms understand how to leverage such initiatives for tangible impacts.
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Cybersecurity – Allocating double the amount used by the private sector for cybersecurity requirements, the government sector can be solidified when it comes to cybersecurity measures and use fortified technology for defence purposes.
MSMEs – Accounting for roughly 90 percent of businesses in the world, MSMEs contribute to over 60 percent of carbon emissions, including 110 million metric tonnes in India. The budget should create an environment for MSMEs to flourish with well-developed logistic infrastructure based on sustainable practices. “We expect the budget to prioritise investments in infrastructure development, digitalization, and skill development, which will further empower MSMEs,” said Uday Sharma, Allcargo Gati Limited.
