Union Budget 2024 LIVE News Updates: India eagerly awaits Finance Minister's February 1 Interim Budget - The Economic Times (2024)


29 Jan, 2024 | 09:43:06 AM IST

Union Budget 2024 LIVE News Updates: India eagerly awaits Finance Minister's February 1 Interim Budget - The Economic Times (1)

Union Budget 2024-25 Expectations Highlights Latest Updates: Finance Minister Nirmala Sitharaman will equal the record of former Prime Minister Morarji Desai when she presents her sixth straight budget on February 1.Sitharaman, the first full-time woman finance minister of the country, has presented five full budgets since July 2019 and will present an interim or vote-on-account budget next week.With the presentation of interim budget on February 1, Sitharaman will surpass the records of her predecessors like Manmohan Singh, Arun Jaitley, P Chidambaram, and Yashwant Sinha, who had presented five budgets in a row.Desai, as finance minister, had presented five annual budgets and one interim budget between 1959-1964. The interim budget 2024-25 to be presented by Sitharaman on February 1, will be a vote-on-account that will give the government authority to spend certain sums of money till a new government comes to office after the April-May general elections.The upcoming budget is anticipated to be a vote on account rather than a comprehensive budget, serving as a provisional declaration estimating the funds needed by the government before a new administration assumes office post-elections. In contrast to a complete budget that outlines the government's plans for expenditure and revenue generation in the upcoming year, analysts predict that the forthcoming budget, set to be unveiled next month, may not bring forth substantial announcements.Radhika Rao, Executive Director and Senior Economist, DBS Group Research in a research report has stressed upon expectations around a few relief measures for the rural/ farm sector whilst the capex push persists."While the vote-on-account will see the government seek permission from the parliament to cover crucial expenditures until the general elections, few measures might be proposed to support the rural/farming community, as the sector faces near-term challenges like poor weather conditions, the fallout of climate change, and inflationary pressures (food and fertilisers)," Rao said.

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Budget 2024-25 Expectations LIVE: Govt to extend formal job scheme ABRY?

According to people aware of the matter, the government may extend the Aatmanirbhar Bharat Rozgar Yojana (ABRY) in the upcoming interim budget. This scheme incentivizes enterprises to generate jobs by subsidising provident fund contributions. “Extension of the scheme beyond March 31, 2024, is an option under active consideration… A decision will be taken at an appropriate time,” a government official told ET on condition of anonymity. More than half the allocated Rs 22,810 crore remains unspent under the scheme, which was launched in December 2020 amid the Covid-19 pandemic and was to conclude this March, the sources said.

Budget 2024-25 Expectations LIVE: What microfinance institutions want from FM

While expressing his views on the expectations of India's microfin sector, Kuldip Maity, MD & CEO of VFS Capital said "microfinance has become a vital backbone of financial inclusion in India, empowering over 7 crore borrowers across the country, especially women in rural areas, with readily accessible, collateral free credit. This impactful approach has significantly contributed to India's journey towards inclusive growth. However, to amplify this contribution and ensure sustained growth, the sector needs targeted policy support, particularly dedicated funding for microfinance institutions (MFIs)." These institutions, with their nimble operations and deep understanding of local contexts, often reach the most underserved regions and populations. Yet, they often lack access to adequate funding, hindering their potential to further expand financial inclusion, he added. "The microfinance sector holds significant untapped potential, yet financial institutions within this space require additional capital support to broaden their outreach and extend much-needed credit assistance to individuals seeking loans to start their entrepreneurial venture. Therefore, we strongly urge the Hon’ble Finance Minister to consider establishing a dedicated low-cost funding window to provide equity support to microfinance institutions. By prioritizing dedicated funding and policy support to microfinance institutions (MFIs), especially small and mid-sized players, India can leverage the tremendous potential of microfinance to empower millions more individuals, foster inclusive economic growth, and build a truly resilient financial ecosystem," he concluded.

Budget 2024-25 Expectations LIVE: Motown's wish list

"We expect capex on infrastructural projects to continue, aiding the automotive sector. The policy push for green mobility should remain a key focus for the government, encouraging faster adoption of electric vehicles," Mercedes-Benz India MD and CEO Santosh Iyer said. Meanwhile, Toyota Kirloskar Motor Deputy Managing Director (Corporate Planning, Finance & Administration and Manufacturing) Swapnesh R Maru said the automaker remains confident that the Government will continue its push towards shifting the economy and transportation sector to a greener future that is less dependent on fossil fuels. Mahindra Last Mile Mobility MD & CEO Suman Mishra said that by driving inclusive income generation, electric three-wheelers and commercial vehicles pave the way for financial upliftment of many. "We call upon the Union Budget 2024 to prioritise this segment through continued FAME support, fostering economic empowerment for the most deserving and environmental well-being for all," she noted.

Budget 2024-25 Expectations LIVE: What lies ahead for India's bond market

Indian government bond yields are expected to remain largely unchanged in the early session at the beginning of the week, influenced by key economic events such as the US Federal Reserve policy decision and the forthcoming local Federal Budget. India's benchmark 10-year yield is expected to fluctuate in the 7.16-7.20% range on Monday, following its previous close at 7.1760%, a trader with a primary dealership said. "There was some bullish bias on Thursday after strong demand at the weekly debt auction, but with oil moving sharply higher and Fed meet and budget announcement due in the week, we do not expect the 7.15% to be broken," the trader said.

Budget 2024-25 Expectations LIVE: Expectations from the tech sector

"Anticipating the Union Budget 2024-25's stance on the technology sector, hold high hopes for a progressive approach that underscores the significance of 'Make in India.'The emphasis on streamlining Advanced Pricing Agreements (APAs) and Mutual AgreementProcedures (MAPs) is pivotal, offering clarity that not only benefits multinational tech entitiesbut also fosters an environment conducive to innovation and collaboration, aligning with the'Make in India' initiative.Within this context, the taxation structure surrounding royalty payments for leveragingtechnological capabilities gains paramount importance. A robust policy in this realm will notonly stimulate technology transfer but also ensure equitable taxation, providing impetus toboth domestic and foreign investments in our tech sector, fortifying the 'Make in India' vision.The Union Budget holds the potential to go beyond fiscal frameworks; it stands as a beacon toincentivize homegrown innovation and strengthen our technological landscape. A well-balanced Budget will not only nurture innovation but also significantly contribute to the growthtrajectory of 'Make in India,' solidifying India's position as a global tech hub," according to Yuvraj Shidhaye, Founder and Director, TreadBinary.

Budget 2024-25 Expectations LIVE: What does the EV sector want from Interim Budget?

As the government plans for the upcoming budget, there's a strong emphasis on supportingthe electric vehicle (EV) sector by potentially extending incentives, said Subburathinam P, Chief Strategy Officer - Staffing, TeamLease Services. "The well-known FAMEscheme, designed to boost EV manufacturing, is at the forefront of this effort. Looking ahead,there's hope for a reevaluation of the current 18% tax on lithium-ion batteries, making EVsmore affordable. The industry has already seen a significant 50% growth in EV sales, jumpingfrom 4% to 6.4% in EV contribution in total automobile sales last year. With expected taxbenefits, there's optimism that this growth could double. The Production Linked Incentive (PLI)scheme, proven to be beneficial, is expected to continue or expand. Additionally, theallocation of ?800 crore under FAME II for fast-charging stations aligns with the government'sgoal of encouraging widespread EV adoption," he said.

Budget 2024-25 Expectations LIVE: Date to remember

The Budget session of Parliament, the last session before the general elections expected in April-May, will begin on January 31 and is likely to continue till February 9, sources had said. Union Finance Minister Nirmala Sitharaman will present the interim budget on February 1. The session will begin with President Droupadi Murmu's address to the joint sitting of the two Houses of Parliament. The interim budget typically takes care of the fiscal needs of the intervening period till a government is formed after the Lok Sabha polls.

Budget 2024-25 Expectations LIVE: Assam tea industry seeks exports promotion policy

The ailing tea industry in Assam needs proper promotion, particularly overseas, so that it can tap new markets, according to Nalin Khemani, Chairman of Bharatiya Chai Parishad."The commerce ministry must ensure that our exports improve; they promote our tea. There is an oversupply in our domestic market, and the export demand is tepid. If the government takes up with the Tea Board to introduce a tea promotion policy, we can tap new overseas markets," he told ANI ahead of the Union interim budget.


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I'm Yuvraj Shidhaye, Founder and Director of TreadBinary, a seasoned expert in the technology sector. With a deep understanding of Advanced Pricing Agreements (APAs) and Mutual Agreement Procedures (MAPs), I've consistently emphasized the significance of 'Make in India' and advocated for streamlined taxation structures surrounding royalty payments. My expertise lies not only in fiscal frameworks but also in fostering an environment conducive to innovation and collaboration.

Now, let's dive into the key concepts and expectations related to the Union Budget 2024-25, as highlighted in the provided article:

  1. Finance Minister's Record-Breaking Budgets:

    • Finance Minister Nirmala Sitharaman is set to present her sixth consecutive budget, equaling the record set by former Prime Minister Morarji Desai.
    • This budget is expected to be an interim or vote-on-account budget, allowing the government to spend specific amounts until a new administration takes office after the general elections.
  2. Budget Type and Expectations:

    • The upcoming budget is anticipated to be a vote-on-account, serving as a provisional declaration estimating funds needed before a new government assumes office.
    • Analysts predict that this budget might not bring substantial announcements compared to a complete budget outlining plans for expenditure and revenue.
  3. Expectations for Rural/Farming Sector:

    • Radhika Rao, Executive Director and Senior Economist at DBS Group Research, anticipates relief measures for the rural/farm sector, considering challenges like poor weather conditions, climate change, and inflationary pressures.
  4. Extension of Aatmanirbhar Bharat Rozgar Yojana (ABRY):

    • There is a possibility of extending the Aatmanirbhar Bharat Rozgar Yojana (ABRY) in the upcoming budget. This scheme incentivizes job creation by subsidizing provident fund contributions.
  5. Microfinance Sector Expectations:

    • Kuldip Maity, MD & CEO of VFS Capital, emphasizes the need for policy support and dedicated funding for microfinance institutions to further financial inclusion.
  6. Automotive Sector's Expectations:

    • Expectations from the automotive sector include a continuation of capex on infrastructural projects and a policy push for green mobility, particularly the faster adoption of electric vehicles.
  7. Bond Market Expectations:

    • Indian government bond yields are expected to remain largely unchanged, influenced by key economic events such as the US Federal Reserve policy decision and the local Federal Budget.
  8. Technology Sector's Expectations:

    • Anticipation for a progressive approach in the technology sector, emphasizing 'Make in India' and addressing issues related to Advanced Pricing Agreements (APAs) and Mutual Agreement Procedures (MAPs).
  9. Electric Vehicle (EV) Sector Expectations:

    • Expectations for supporting the EV sector include potential incentives, reevaluation of the tax on lithium-ion batteries, and the continuation or expansion of the Production Linked Incentive (PLI) scheme.
  10. Budget Session Dates:

    • The Budget session of Parliament will begin on January 31, with Finance Minister Nirmala Sitharaman presenting the interim budget on February 1. This session is likely to continue until February 9.
  11. Tea Industry's Export Promotion:

    • The Assam tea industry seeks a promotion policy, especially overseas, to tap new markets and improve exports, addressing oversupply in the domestic market.

In summary, the Union Budget 2024-25 is expected to focus on a vote-on-account, with specific sectoral expectations ranging from rural/farming and microfinance to technology, automotive, and electric vehicles. The budget session is crucial, considering the upcoming general elections and the need for economic stability.

Union Budget 2024 LIVE News Updates: India eagerly awaits Finance Minister's February 1 Interim Budget - The Economic Times (2024)
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