Union Budget 2024: Fulfilment of election promises, tax-relief for middle class in focus

Union Budget 2024: As the nation awaits the budget announcement by Finance Minister Nirmala Sitharaman on Tuesday, a series of experts are joining Republic Business to elaborate on the intricacies of the budget to the audience. In the early hours of the budget day, experts have shared their insights and expectations regarding the key focus areas and potential impacts of Budget 2024.

Ajay Dua, Former Commerce Secretary, Government of India remarked that government is likely to focus on delivering the promises made by Prime Minister Narendra Modi in his last election campaign. Dua said, "One of the biggest expectations is to fulfil the guarantees that the Prime Minister has promised in the last six months during the campaign. The PM will try to deliver on his promises, and this might be reflected in the budget."

Dua also underlined the importance of increasing consumption amidst global economic challenges. "We are on the right path despite global headwinds. The Economic Survey has drawn attention to the need to keep consumption increasing. The Finance Minister will face challenges on one hand to increase consumption and, on the other, to incentivise the private sector."

Manoranjan Sharma, Chief Economist, Infomerics Ratings anticipates a strong emphasis on economic growth and structural transformation. "Even though the Finance Minister will aim to continue to have good momentum, there will be a sharper focus on economic growth, structural transformation, along distributive equity. For India to grow in a sustained manner, all four engines of consumption, investment, government expenditure, and net exports have to work in coordination," he stated.

Sharma also expects relief measures for common taxpayers and a boost to Micro, Small, and Medium Enterprises (MSMEs).

Highlighting the stability within the coalition government and India's post-COVID-19 recovery strategy, Rajiv Gupta, Senior Economist said, "Even though this is a coalition government, things are moving as before and no major change is visible as of now. In post-COVID-19, India’s focus on boosting the supply chain has given us an upside over other economies that were putting money in the hands of people to drive consumption. Now that the recovery has happened, there are more chances of change in tax slabs, and a consumption-led story being introduced, and that is going to be the focus of the budget."

Kishore Subramanyam, Financial Analyst, underscored the financial pressures faced by the middle class and called for significant changes in tax policies. "Every 20 years, the middle-class expense goes up by 10 times, and this indicates that we need a change in the tax slabs. My expectations from the budget are clear: I want discontinuance in high tax, I want standard deductions to go up, I want the middle class to have their month-end on the 30th and not on the 10th or the 15th of the month," he explained.

Subramanyam also noted that the middle class is eagerly anticipating what will become cheaper for them and hopes for substantial relief from the government.

As the nation awaits detailed announcements, these expert insights provide a comprehensive overview of the key areas of focus and the anticipated impacts on various sectors of the economy. 

(Source: Republicbiz)