Budget 2024 Financial News

Budget 2024 looms on the horizon, the Indian crypto industry is buzzing with expectations, eager to witness how the Central Government will shape the regulatory landscape for virtual digital assets (VDAs). A focal point for industry experts is the pressing need for changes in the classification and taxation of these assets. One prominent demand from experts is the abolition of the 1% Tax Deducted at Source (TDS), a measure currently in place. Analysts argue that this TDS rate hampers investor participation by causing capital losses with each trade, discouraging potential investors from entering the crypto market. Leading voices in the industry have articulated their hopes for Budget 2024:

Budget expectations: According to a report by the World Gold Council, India is the second largest consumer of gold jewellery in the world and the interim Budget with strategic moves can give the industry a shot in the arm. The World Gold Council report said much of the Indian gold market was very traditional, reflecting important cultural and religious ties. This can be seen in the long-standing preference for 22-carat jewellery and the dominance of bridal jewellery. But the gold market is evolving, with changing tastes and designs. In recent years, for example, demand has grown for lightweight and studded jewellery. These stones and jewellery are considered as the power, success, and reputation for the Indian women thus providing them social and economic security, the value of which can never be undermined. Also Read: A bold Budget can pave way for India to be Global South's voice Budget boost for India — a jewellery factory of the world India today is the factory for the world in jewellery segment and has potential to become the market for the world. The Gems and Jewellery industry has become one of the largest businesses in India, playing an important role in the Indian economy. If we consider the statistical data, it is seen that it contributes to almost 7% of the country’s total GDP, and 15.71% of India's total merchandise exports.

“70-75% of the portfolio in our view should be in largecaps. Remaining should be largely in small caps and only very high conviction should be held in mid-caps,” says Varun Saboo, Head — Equities, Anand Rathi Shares and Stock Brokers. In an interview with ETMarkets, Saboo said: “There could be some element of populist measures as well which could aid consumer stocks in the near term,” Edited excerpts: The market seems to have climbed all wall of worries to hit fresh highs in the first week of January 2024. But, the voice is getting louder both domestic and global that these valuations are unsustainable. What is your take? Varun Saboo: We are definitely in one of the strongest runs, something which hardly anyone would have envisaged. However, in terms of valuations, there are a lot of midcaps that are trading rich and leave little room for upsides.

India could unveil an expanded third phase of the incentive scheme for electric vehicles in the upcoming interim budget on February 1, enhancing it to support mass transport and alternative fuels, a top government official told ET. The budget could set aside ₹10,000-12,000 crore for the third instalment of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme. «FAME III will be focused on mass transport such as buses, and personal mobility for two-wheelers while also encouraging adoption of alternative fuel vehicles like hydrogen-powered ones,» said a ministry of heavy industries official. Industry demands new scheme

Interim Budget presentation in Lok Sabha on February 1, the Reserve Bank of India's Monetary Policy Committee (MPC) member Ashima Goyal on Wednesday suggested that the government can contemplate imposing income tax on rich farmers to bring about fairness in the country's taxation structure, news agency PTI reported. "Government transfer payments to farmers are like a negative income tax. Along with that, a positive income tax can be applied for rich farmers as part of a movement to a data-rich system with low tax rates and minimum exemptions," PTI quoted Goyal as saying.

food and fertilizer subsidies for the next fiscal year, indicating fiscal caution ahead of 2024 Lok Sabha elections, said two government sources as quoted by Reuters. During the current fiscal year, which concludes on March 31, India's total budget spending is 45 trillion rupees, of which approximately one-ninth comes from subsidies on food and fertiliser. They said the Ministry of Consumer Affairs, Food and Public Distribution has projected that the cost of food subsidies in 2019 will be 2.2 trillion rupees ($26.52 billion).

While everyone is keenly awaiting the interim Budget 2024, there is an array of expectations around personal income tax which include provisions relating to exemptions, rebates and long-term capital gains, or LTCG.  There is some chatter around the unification of capital gains tax for all financial assets such as equity and debt, but we must wait until Feb 1 before we can put these speculations to rest.

interim budget, as seen in the past few decades, has whetted interest in how Finance Minister Nirmala Sitharaman is going to structure it. Read our full Budget 2024 coverage here Coming right before the Lok Sabha elections, an interim budget is an effective vehicle on which an incumbent government's poll priorities can ride. Being a top national event, it gets a lot of eyeballs and remains in the public mind as the responses and debates it generates in different quarters echo for several days. It is the last big government event before elections to please chosen voter segments. On the face of it, the BJP-led NDA government at the Centre seems to be free of the kind of pressures, or promises, an interim budget can generate for a ruling party facing elections just a few months later. It has scored surprising victories in three key states just last month which many see as a strong voter endorsement for the coming Lok Sabha elections, especially when the opposition's alliance has yet to take a potent shape.

insurance cover under its flagship Ayushman Bharat health scheme to Rs 10 lakh to ensure that serious diseases like cancer and transplants that entail more expenditure are supported by it, official sources said on Wednesday. An announcement to this effect is likely to be made in the interim Union Budget on February 1, the sources told PTI. The Union health ministry is also planning to double the beneficiaries to 100 crore under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) to include Kisan Samman Nidhi recipients, construction workers, non-coal mine workers and ASHA workers in the next three years. «In order to ensure that serious illnesses requiring expenditure of more than Rs 5 lakh such as transplants and high-cost cancer treatments etc. are also covered under AB PMJAY, the ministry is working on finalising a proposal to increase the cover amount from Rs 5 lakh per family per year to Rs 10 lakh per family per year from 2023-24 onwards,» the sources said. The increase in coverage to Rs 10 lakh per family per year and increase in beneficiary base to 100 crore individuals will involve an additional allocation of Rs 12,076 crore per annum, the sources stated.

initial public offering (IPO) process and boosting investor confidence in startup exits. “Allocating resources judiciously ensures regulatory compliance, transparency, and legal adherence during the IPO journey. Moreover, budget provisions for effective investor communication, marketing, and technology infrastructure signal professionalism and commitment, enhancing investor trust.

₹3,397.32 crore to this sector, including a substantial boost to Khelo India with ₹1,045 crore. Punit Balan, Chairman & Managing Director of the Punit Balan Group, highlighted the government's commitment to fostering athletic talent.

Budget expectations: India may earmark about 4 trillion rupees ($48 billion) for food and fertiliser subsidies for the next fiscal year, two government sources said, indicating fiscal caution ahead of this year's general election. Food and fertiliser subsidies account for about one-ninth of India's total budget spending of 45 trillion rupees during the current fiscal year that ends on March 31. Also Read: Interim Budget 2024 may see modest expenditure hike as Centre looks to stay on fiscal glide path The Ministry of Consumer Affairs, Food and Public Distribution has estimated next year's food subsidy bill at 2.2 trillion rupees ($26.52 billion), the two sources said. That is 10% higher than a projected outlay of nearly 2 trillion rupees ($24.11 billion) for the current 2023-24 fiscal year.

NEW DELHI : India plans to announce an extension to Prime Minister Narendra Modi's flagship federal housing scheme in next month's budget and an increase in available subsidies for low-cost housing loans, three sources said, ahead of elections this year. Finance Minister Nirmala Sitharaman, who will present an interim budget on February 1, is likely to raise allocations for low-cost housing by more than 15% to ₹1 trillion ($12 billion) for 2024/25 from ₹79,000 crore in the 2023/24 budget, two of the government sources said.

interim budget on February 1. This means less likelihood of any major announcement or showering of freebies on the poor. The government is also likely to slow the pace of capital expenditure to rein in fiscal deficit. The fiscal deficit target of 5.3% will be set by the government in FY25, keeping in view the fiscal consolidation path till FY26, as it normalises capital spending and refrains from any major announcements in the interim budget before the general elections, Icra and Barclays economists have said. ICRA expects the fiscal deficit target for FY25 to be set at 5.3% of GDP, midway through the expected print of 6.0% for FY2024 and the medium-term target of sub-4.5% by FY26. India has set a target of a 5.9% fiscal deficit for FY24. The interim budget is expected to follow the tradition and just seek a vote on account, Parliament’s nod for a grant in advance to meet the Centre’s essential expenditure for the first four months of FY2024-25. But the government may not totally ignore pressing issues that demand action especially just months before elctions. One such issue of economic as well as electoral importance is sluggish rural demand as the poor in India's rural areas are hit more by rising prices. The government may not wait till the full budget to address the issue and might declare welfare schemes for the rural poor in the interim budget.

Kedar Kadam, Director - Listed Investments at Waterfield Advisors is of the view that new large schemes may or may not be announced in this Interim Budget, but some existing popular schemes could see expansion/extra resources to boost implementation rates. In an interview with Mint, Kadam also shared his views on the domestic market and economy.

₹1.12 lakh crore against FY 2022-23 budget allocation of ₹1.04 crore. FY 2023-24 budget included ₹68,804 crore allocation for school education, ₹44,094.62 crore allocation for higher education and ₹37,453 crore allocation for the Samagra Shiksha Abhiyan (SSA). Here are some suggestions from experts, from investments in skill development to infrastructure ahead of elections.

interim budget for FY25, from the budget estimate for this year, as it aims to balance the need for sustained growth with fiscal consolidation imperatives, people aware of deliberations said. With the economy continuing to grow at a robust pace, the government is of the view that fiscal consolidation needs greater attention, they said. According to the first advance estimate, India's gross domestic product (GDP) is forecast to grow 7.3% in FY24, bettering the preceding fiscal year's 7.2%. FY24's budget had raised spending by 14.1% over the FY23 budget estimate — to ₹45 lakh crore. FY24 expenditure growth was up 7.5% over the provisional number for the last fiscal year. The Centre will continue quality spending next fiscal by raising capital expenditure, albeit at a slower pace than in recent years, a government official told ET. Muted hike in capex This, while lifting revenue spending at a moderate rate, the official said.

Nirmala Sitharaman will rise in the Lok Sabha on February 1 to present the Union Budget 2024-25. It will be an interim Budget as the elections for the Lok Sabha are due early next year. The full Budget for FY25 will be presented after the formation of the new government following the general elections.

₹4.23 trillion annually. Such a dedicated body would streamline the currently fragmented regulatory framework, simplifying compliance and fostering growth, it said.

Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy, believes keeping the elections in mind, one can expect a populist budget. In an interview with MintGenie, he advised investors to create a position in the agriculture, infra, and real estate sectors. One can look to book some profit in small-cap and mid-cap space and create positions on the large-cap, real estate-related companies, and debt, he added.

PTI report, healthcare industry body NATHEALTH has advocated for a hike in healthcare spending to 2.5 per cent of the GDP and the rationalisation of the GST framework. “Additionally, we aim to enhance the medical value travel segment by addressing the MAT credit issue and strengthening the healthcare value chain, which is essential for driving economic growth and creating new job opportunities," NATHEALTH MD and CEO Ashutosh Raghuvanshi said.