India Interim Budget 2024: Latest Updates

अंतरिम बजट एक ऐसा अस्थायी बजट है जिसे प्रायः नई सरकार के कार्यान्वयन तक के दौरान संसद से आवश्यक खर्चों के लिए मंजूरी प्राप्त करना होता है. क्या आप जानते हैं कि ऐसे बजट को "अंतरिम बजट" कहा जाता है? इस बार, वित्त मंत्री निर्मला सीतारमण (FM Nirmala Sitharaman) छठवीं बार बजट पेश करने की तैयारी में हैं।

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The Lok Sabha Elections are near the corner and the entire nation is excited about the results. The Lok Sabha elections 2024 will decide whether the Modi Government will mark a hat-trick by winning the elections three times in a row or not. But with the elections coming nearby, everyone's eyes are stuck on the Interim Budget 2024, which will be announced by FM Nirmala Sitaraman on 1st Feb.

As an interim budget, there are no such high expectations, but the nation’s budget can significantly impact the business and trade within the economy. Before moving forward, let’s focus on evaluating and understanding what an interim budget means.

What is an Interim Budget?

An interim budget, in its simplest terms, is a financial plan introduced during an election year. It outlines the government's strategy for managing finances until a new government is elected, providing a temporary roadmap for the country's economic affairs. Due to such an approach, no big claims or announcements are made.

Once the election is over and the new government is elected, they present the full-fledged Union Budget. But also the industry experts state interim budgets to be more of a political statement rather than just a budget. It is announced just before the elections, hence, the government tries to deliver economic benefits for the targeted group. In India, such a targeted group is mostly the middle class.

Why This Budget is Important?

Now the most commonly asked question, “Why presenting an Interim Budget Important?”, can’t it be replaced by a full-fledged budget? The answer is simple, every political party has their set agenda or vision for the nation’s growth and development. Based on such a vision, the annual budget is prepared. So what if the vision of the newly elected government doesn’t align with the previous one? Hence, presenting an interim budget helps to bridge such a gap.

Also, as of 2024, the interim budget holds great importance. It is highly expected that the BJP government will regain its position in the central government. If this becomes true, then the interim budget will impact the final budget post-election. The finance ministry expects that under the BJP-led government, India is set to experience a 7% hike in its GDP. Accordingly, the investments and budget allocations are being planned.

Key Expectations From Interim Budget 2024

The budget is expected to announce a change in existing tax slabs ensuring a relief for the salaried individuals as well as for senior citizens.
Revising the existing GST rates for the products & services and making daily essentials more affordable. Also, several amendments to the existing GST law to ensure streamlining of the process.
Increased Expenditure for Rural education, agriculture, urban development and healthcare as well as towards tourism
Tax norms or policy changes that may shape foreign investments in India can be a major highlight in this interim budget 2024.
A boost in the investment made towards the PM Kisan Samman Nidhi (PM-KISAN) scheme, MG-NREGA, FAME subsidies

Also apart from these expectations, industry experts have provided certain suggestions for this interim budget that the government can include. These are:

Providing subsidies or financial support to the EV or the battery manufacturers, so that their capabilities can be enhanced.
Tax reliefs for individuals investing in life insurance schemes and policies so that the insurance sector can be boosted.
Jewellers are expecting a cut in import duty. As higher import duty impacts the market, also contributes towards an increased case of smuggling and black marketing practices.
Entrepreneurs and Start-Up founders are expecting any beneficial announcements that can aid them in their business setup and growth in Indian territory.

There exist several other expectations from the Budget 2024, but again to remind you, it is just an interim budget. Hence, the focus will majorly towards to manage the financial expenditures for the coming 3-4 months. Stay up-to-date and informed by downloading the Shuru App on your device. With Shuru, you'll gain in-depth insights into key announcements and policy changes in the recent budget. As the leading and trusted news app, Shuru delivers every budgetary announcement straight to your fingertips. So stay connected and informed with Shuru.