Budget 2024: On February 1, Union Finance Minister Nirmala Sitharaman will deliver the interim budget. Following the impending 2024 Lok Sabha elections, the newly elected government will announce the whole budget for the fiscal year 2024–25.
Nirmala Sitharaman’s Interim Budget Under Scrutiny
Investors and market watchers are still anticipating some significant revelations from the finance minister, despite his refusal to make any “spectacular announcement” in the interim budget for this year. Examine the following six crucial topics that may receive the most attention in the government’s interim budget:
Government Mulls Tax Breaks for National Pension System (NPS)
According to PTI, the government may increase the appeal of the National Pension System (NPS) by providing tax breaks on contributions and withdrawals, particularly for elderly individuals over 75.
EPFO and PFRDA Seek Equality in Employer Payments
The Employees’ Provident Fund Office (EPFO) and the pension fund regulator PFRDA have been pursuing “parity” in the taxation of employer payments. The interim budget is anticipated to contain some announcements about this matter.
Empowering Farmers
According to sources who spoke to PTI, the Centre is also anticipated to guarantee that every qualified farmer has access to institutional finance by announcing in the forthcoming interim Budget a significant rise in the agricultural loan target to ₹22–25 lakh crore for the following fiscal year.
PLI Scheme Expansion
In the upcoming interim Budget, the government may expand the PLI scheme’s coverage to include industries like jewellery, handicrafts, and clothing in an effort to boost the manufacturing sector and create jobs, according to Deloitte.
Equity in Agriculture
After providing financial support to underprivileged farmers through account transfers, the government may consider levying income taxes on wealthy farmers in order to promote equity in the tax system. Ashima Goyal, a member of the Reserve Bank Monetary Policy Committee (MPC), stated
Tax Incentives Extended
According to EY’s 2024 Budget Expectations research, the government may decide to prolong the favourable 15 percent income tax rate for corporations establishing new manufacturing units by a year, until March 31, 2025, in an effort to stimulate private investment.
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