Budget 2024 Expectations

Budget 2024 Expectations

Budget 2024 Expectations Live Updates: PM Modi to convene top economists for Budget 2024-25 insights

Finance Minister Nirmala Sitharaman will present the 2024-25 Union Budget on July 23. With rumors swirling about potential tax reliefs, an increase in the standard deduction cap is anticipated. 

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Prime Minister Narendra Modi to Meet Leading Economists for Budget 2024-25 Discussions.

Prime Minister Narendra Modi is set to engage with prominent economists and sectoral experts. A senior government official disclosed that the meeting aims to gather insights and recommendations for the 2024-25 Budget, which Union Finance Minister Nirmala Sitharaman will present in the Lok Sabha on July 23.

This Budget is poised to be a critical economic blueprint for the Modi 3.0 administration, outlining key fiscal policies and initiatives. The consultation will see the participation of Niti Aayog Vice Chairman Suman Bery, along with other distinguished members, as the government seeks to integrate diverse expert perspectives into its financial planning.

Enhancement of tax benefits for homebuyers. Increasing the deduction limit under Section 80C for principal repayments on home loans from the current ₹1.5 lakh to ₹2.5 lakh, says expert

“With the industry still navigating the aftermath of the pandemic, it is crucial for the government to introduce supportive policies that will sustain the current growth momentum. One of the primary expectations is the enhancement of tax benefits for homebuyers. Increasing the deduction limit under Section 80C for principal repayments on home loans from the current ₹1.5 lakh to ₹2.5 lakh could provide significant relief and incentivize more individuals to invest in property. Additionally, more incentives for affordable housing projects are essential. Aligning these incentives with the government’s focus on capital expenditure, which is set to increase by 33% to ₹10 lakh crore, could stimulate both supply and demand. This would benefit not only the real estate sector but also the broader economy by creating jobs and driving economic activity.

Moreover, reforms in the Goods and Services Tax (GST) framework are highly anticipated to simplify tax compliance and reduce the overall tax burden on real estate transactions. The current GST rate of 12% on under-construction properties significantly increases the cost for homebuyers. Reintroducing the input tax credit for developers, which was withdrawn in 2019, could lower construction costs by an estimated 10-12% and improve affordability. The sector also looks forward to the continued emphasis on infrastructure development, as highlighted in the government’s expenditure budget, which allocates ₹2.4 lakh crore for the railways, the highest allocation ever. Improved urban planning initiatives, supported by the expected ₹1.5 lakh crore allocation for smart cities and urban rejuvenation, can significantly boost real estate values and attract further investments. In summary, a well-balanced budget addressing these critical aspects, including streamlined fiscal policies and targeted expenditure, could greatly contribute to the sector’s robust growth and stability, ensuring a prosperous future for all stakeholders involved.”

Just six months after it crossed the historic ₹50 lakh crore mark in December 2023, the net AUM of MFs.

Just six months after it crossed the historic ₹50 lakh crore mark in December 2023, the net Asset under Management (AUM) of the Indian mutual fund industry surpassed the ₹60 lakh crore mark in June 2024. The net AUM increased by nearly 38 per cent (37.76 per cent) to touch ₹61.16 lakh crore in June 2024, up from ₹44.39 lakh crore in June 2023. On a month-on-month basis, the net AUM increased by nearly 4 per cent (3.82 per cent) from ₹58.91 lakh crore in May 2024. After two successive months of higher inflows, the mutual fund industry witnessed net outflows to the tune of ₹43,637 crore for the first time since the beginning of this financial year.

Equity mutual funds witnessed a whopping 370 per cent rise in inflows at ₹40,608.19 crore in June 2024, as against ₹8637.49 crore in June 2023. “Domestic equity markets witnessed some initial volatility ahead of the outcome of the general elections. However, markets rebounded sharply on hopes of political stability and policy continuity. Gains were extended after India’s GDP growth came better than expectations and stood at 7.8% in the fourth quarter of FY24. Market sentiments were further boosted after the Reserve Bank of India upgraded the GDP growth rate of the domestic economy to 7.2% from 7.0% for FY25 even though it kept the key policy repo rate unchanged,”

Healthcare expert calls for enhanced incentives for research and development

Shishir Gupta, CEO of Riot Labz, said, “As we approach the upcoming budget, RIOT LABZ hopes for increased government support for the electronics manufacturing sector. Enhanced incentives for research and development, along with subsidies for sustainable manufacturing practices, would significantly bolster our efforts to innovate and remain competitive globally. Additionally, streamlined regulatory processes and tax benefits for export-oriented units would facilitate smoother operations and expansion into international markets. We believe these measures will drive growth, foster technological advancements, and create more job opportunities within the industry. Furthermore, specific allocations for the development of skilled labour and upskilling programs would help bridge the talent gap, ensuring a steady pipeline of proficient workers to support our advanced manufacturing processes. We also hope for increased funding for infrastructure development in industrial hubs, which would improve logistics and reduce operational costs, enhancing overall productivity.”

Expert expects a significant increase in budget allocation for mental health initiatives

We expect a significant increase in budget allocation for mental health initiatives, particularly in awareness campaigns, accessibility improvements, and affordability measures.

Our hopes include integrating mental health services into primary healthcare, substantial investments in digital mental health solutions, and incentives for startups innovating in this space. We advocate for measures addressing the shortage of mental health professionals through targeted skill development programs and promotion of tele-mental health services. Policies mandating mental health coverage in insurance plans, increased funding for mental health research, and the establishment of a national mental health database are also key expectations.