Nirmala Sitharaman, the Union Finance Minister, is going to unveil the fiscal year’s budget, this one for the upcoming fiscal year (FY) 2024–25. Since 2017, the budget has been delivered on February 1, 2024, at 11:00 AM.
Union Budget 2024-25 Date
On February 1, 2024, as part of the legislature’s budget session, Finance Minister Nirmala Sitharaman will deliver the Union Budget 2024 for the fiscal year 2024–2025. The budget that is scheduled to be offered on February 1st, however, will be a temporary financial plan or a vote on account because it is an election year.
The Interim Budget is not expected to undergo significant changes based on historical trends. However, FM Sitharaman may announce some populist policies targeted at the average person, with a focus on jobs, the agricultural sector, income tax, some comfort, and senior citizens.
The announcement of the Union Budget 2024 coincides with the Indian economy continuing to grow at the world’s fastest rate of any major economy. It is expected that the budget for 2024 will be centered around policies that will support India’s economy as it continues to grow and approaches the $5 trillion mark.
With the world facing headwinds and war-like situations causing uncertainty, it will be crucial for Budget 2024 to render the Indian economy more competitive.
What will be expected to be included in the Union Budget 2024-25?
The Union budget 2024-25 is going to provide many types of facilities. Here are some important expected benefits.
Strike a balance between economic development and consolidation in finances.
- The deficit in the budget focus on 5.9% of GDP for FY24 deserves to be kept, according to CII’s pre-Budget 2024 note. For FY25, the fiscal deficit needs to be brought down to about 5.4% of GDP.
Investing in artificial intelligence
- The CEO of Mobikwik, Bipin Preet Singh, proposes that the Indian government should fund artificial intelligence (AI) to remove linguistic barriers and improve fintech companies’ accessibility.
- Singh demands standardized interfaces for financial apps with AI capabilities as well as the creation of a national AI development mission akin to that of the National Payments Corporation of India. According to Singh, this would lessen the need to import expertise and equipment from other nations.
Emphasize the promotion of financial inclusion
- Gaurav Jalan, the founder, and chief executive officer of mPokket, thinks that to spur business expansion and promote cutting-edge technologies in India’s fintech countryside, the interim budget that Union Finance Minister Nirmala Sitharaman presented in February should place a high priority on financial empowerment and creative lending options for MSMEs and the country’s youth.
Pay attention to the sectors
- In the soon-to-be-announced interim budget for 2024–2025, Apurva Sheth of SAMCO Securities believes that the government will continue to prioritize areas like infrastructure, railroads, and defense.
Focus and support of agriculture, infrastructure, and healthcare
- Sonam Srivastava of Wright Research projects robust prospects for expansion in the forthcoming interim budget, which will prioritize fiscal restraint as well as funding for agriculture, healthcare, and development.
- In addition, he sees improved investor confidence and a positive outlook for the year as a result of efforts to lower inflation and streamline tax regulations.
Plan to increase capital expenditures
- Budgets before elections are usually small. In FY 2024–2025, the government intends to raise capital expenditures and aim for a 4.6% fiscal deficit.
- Axis Securities projects that government investment in capital in the BFSI sector would expand by 10% to 15% in FY25, with a goal of ₹10 Lc Cr. of public infrastructure will be given high importance.
Include a little increase for the textile ministry
- The textile ministry’s funding will see a little increase in the next interim budget. According to Dhirendra Kumar of Mint, who cited people with knowledge of the situation, the ministry’s budgetary allocation for the fiscal year 2024–2025 is probably going to see a small increase of 2.5%. For this fiscal year’s budget, ₹4,389 crore have been allocated to the ministry.