The interim budget 2024–25 is scheduled to be presented by Union Finance Minister Nirmala Sitharaman on February 1, 2024. India Inc. anticipates the announcement of several measures aimed at increasing consumption, reshaping policies to provide manufacturers with equal opportunities, allocating strategic funds for infrastructure development, emphasizing agriculture, and more. Before the general elections, this will be the last budget that the federal government passes, and everyone will be watching for the finance minister to potentially unveil a number of populist initiatives.
In February, the finance minister will present an interim budget or a vote on account, in light of the April or May 2024 Lok Sabha Elections. After the new government is formed, a new complete budget is expected in July of this year.
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Updated Approximations budget 2024
The budget estimates for the current fiscal year alone are the basis for the revised estimates (RE). Following a mid-year assessment of how much of the allotted funds were used and how much was left over, revised estimates are finalized. The financial year’s budget estimates are updated based on the progress and are displayed as Revised Estimates.
For instance, the Revised Estimates of FY 2023–24 will be included in the Union Budget 2024–25.
For the Revised Estimates, the government does not need the Parliament’s approval. However, the Demands for Grants must be approved by the Parliament as supplemental Demands for Grants if they surpass the cap set as budget estimates.
In FY25, moderation in capital expenditure growth will drive fiscal consolidation
According to Nirmal Bang, the fiscal deficit in FY25 is expected to be 5.5% of GDP, with a moderation in capex growth to 15% from an estimated 36% in FY24. According to the brokerage firm, subsidies will essentially remain unchanged in FY25 over FY24.
Railways and roads are probably going to lead capital expenditure
Even in the event of a moderation, the brokerage pointed out that roads and railroads will remain the main drivers of government capital expenditure growth. Given that spending on trains has increased by nearly 40% year over year so far in FY24, they might get the biggest allocation increase. In terms of central government and CPSE project announcements in FY24, the railways are leading the way,” Nirmal Bang stated. By 2030, India hopes to be in the top 25 nations in the world and cut its logistics costs.
As a result, this budget 2024 we anticipate budgetary measures that will support and stimulate small and medium-sized businesses and sustainably boost trade and manufacturing. We also anticipate initiatives to further foster a business-friendly environment and increase trade facilitation, in line with the USD 5 trillion economy goal.
Agricultural and rural sector spending Budget 2024
Nirmal Bang Budget 2024 emphasized that while Ministry of Agriculture spending has remained flat in FY24 thus far, Ministry of Rural Development spending has decreased by 8% YoY. The brokerage firm thinks that increased allocation under NREGS and other rural development schemes may cause this to change in the upcoming months.
pyramid, with a propensity to highlight women
We expect policies geared toward the rise of the “bottom of the pyramid” with the goal of reducing out-of-pocket spending for emergencies and necessities. This Budget 2024 A step in this direction was the expansion of the Pradhan Mantri Garib Kalyan Anna Yojana. Another such step could be to expand the coverage of health insurance through Ayushman Bharat. According to Nirmal Bang, support for affordable housing in both urban and rural areas is also a possibility. The brokerage firm envisions programs aimed at empowering women by creating jobs and providing a financial safety net. Besides
Imports such as palm oil, stearic acid, soap noodles, oleic acid and refined glycerin may be placed on the restricted items list to create a level playing field for manufacturers. Alternatively, an import duty of 25% can be levied on finished goods instead of raw materials. Further, duty-free import facilities for raw materials should be extended to companies having processing facilities. It is expected that this move will spur innovation and increase competitiveness by supporting the Made in India movement.
production, green, and clean technology
Green and clean technologies, as well as the surrounding environment, will probably continue to be important. Subsidies for the Faster Adoption and Manufacturing of Electric Vehicles (FAME) are probably going to stay in place, albeit somewhat rationalized. There might be a push for the indigenization of defense and defense exports, according to Nirmal Bang.
