Category Budget

While unveiling the Interim Budget 2024 on February 1, Sitharaman announced an 11.1 per cent hike in capital expenditure (capex) for the financial year 2024-25 (FY25), raising the allocation Rs 11.11 lakh crore was allocated for developing infrastructure projects. The infra-capex allocation was double the allocation of 10 years ago. Key infra sectors, including railways, road transport and highways, had utilised up to 85 per cent of their budgetary allocations in the first nine months of FY24.

Also read: Budget 2024: Agriculture sector demands $100 billion exports, long-term farmer loans; 5 key expectations

According to most industry bodies, major technological interventions, private sector participation, market liberalisation and efficient resource utilisation will ensure a strong and reliable future for India’s infrastructure sector and transport sectors. Here are the expectations of key industry leaders from the upcoming Interim Budget 2024 to strengthen India’s infrastructure and railway sector:

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Published: July 02, 2024, 09:35 PM IST

“The industry’s significant contribution Gross Domestic ProductAnuj Puri, Chairman, ANAROCK Group, said, “The industry is very deserving of such recognition in terms of its growth, employment and foreign exchange revenues. The industry cannot progress in a sustainable manner without being granted industrial status, which will help boost its growth.” Livemint,

In a pre-Budget meeting with Finance Minister Nirmala Sitharaman last month, Confederation of Indian Industry (CII) President and ITC Ltd Chairman and Managing Director Sanjiv Puri had also suggested that the sector should be given the status of “industry”.

Later, the Federation of Hotel & Restaurant Association of India (FHRAI) also requested the government to grant infrastructure status to all categories of hotels.

Sanjay Sethi, Managing Director and Chief Executive Officer, Chalet Hotels Ltd, said the industry status would “provide a significant impetus for companies to continue reinvesting in the growth of the sector.”

These officials also said that the Centre should reduce the Goods and Services Tax (GST).GST) Focus on the sector, allocate more funds for skills development, and provide incentives for investing in sustainable development. Tourism,

Currently, different GST slabs apply to different services in hotels and restaurants. FHRAI said that 12 per cent rate should be applied across all categories.

Anarock’s Puri also said the budget should prioritise tax cuts, rapid infrastructure development and reforms – especially in newly emerging tourism sectors – and make significant progress in promoting tourism.

“The industry needs airports to further boost local and international tourism, and their upgradation should be given urgent attention. In addition, the regulatory processes related to this should also be improved.” hospitality industry “This needs to be streamlined immediately,” he said.

Sethi of Chalet Hotels said the sector needs to attract more investments to ensure its long-term viability.

“Benefits such as lower utility charges, lower property taxes, easier access to finance and easy loans are critical to reducing the cost of doing business, ensuring the long-term viability of the sector and, in turn, greater investments in the sector will lead to job creation,” he said.

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Published: July 02, 2024, 03:22 PM IST

Speaking to Livemint, Pradeep Aggarwal, founder and chairman, Signature Global (India) Ltd and chairman, ASSOCHAM National Council on Real Estate, Housing and Urban Development, said that Real estate sector It expects major reforms including granting of industry status to attract investments and simplification of regulations.

“Simplified single-window clearance system will speed up project approvals and reduce delays. Amendments in GST input tax credit rules will reduce costs Property prices And transparency should be increased. Home loan interest exemption under section 24 should be increased “Income above Rs 5 lakh will drive demand. Increasing budget allocation for urban infrastructure and reducing stamp duty rates or providing rebates for first-time homebuyers will boost growth,” he said.

“Affordable housing will be expanded to include homes up to Rs 15 lakh “The larger carpet area cap up to Rs 75 lakh and re-launch of CLSS scheme will benefit homebuyers. Continued investment in infrastructure, housing and urban development is critical for sustained growth, job creation and improved quality of life, which will pave the way for India to become a developed nation by 2047,” Aggarwal told us.

Similarly, Anil Gupta, President, CREDAI NCR Bhiwadi Neemrana, said that the initiative to promote and encourage off-beat places affordable housing This will be crucial in expanding the reach and inclusiveness of the market. He added that the reduction in home loan interest rates will also boost the influx of potential buyers in the region.

“We also expect potential reduction in GST rates and initiatives to stabilise material costs, which will significantly benefit both developers and homebuyers. With these strategic interventions, we envision a vibrant real estate landscape that not only fulfils the aspirations of homebuyers but also drives economic revival across the country,” Gupta added.

Apart from this, another important aspect is the proposal related to input tax credit under GST, which is crucial for companies leading the sector in this new era and can boost regional growth. home buyers and accelerate economic recovery, said Mohit Malhotra, Founder and CEO of NeoLiv.

“We expect new growth opportunities with increased funding for infrastructure, making city centres more accessible for mid-range housing projects. We hope the budget will recognise the potential of this segment and include provisions for strong financial help He said, “We are empowering developers through transparent policies and promoting the growth of the housing sector.”

Rahul Sharma, India director of the International Zinc Association, hopes that Narendra Modi-led NDA government to prioritise safety and quality of infrastructure, increase funds for maintenance and upgradation of existing infrastructure, and provide incentives for innovative construction technologies in the real estate sector.

“By prioritising infrastructure, the Budget aims to improve the quality of life of citizens, generate employment and boost economic prosperity, which will ultimately strengthen the foundation of a ‘developed India’,” he said. Galvanisation is crucial in preventing corrosion, leading to structural failures and reducing maintenance costs. The use of galvanised steel also promotes sustainability by increasing the lifespan of infrastructure.”

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Published: June 28, 2024, 07:12 PM IST

The Union Budget for this financial year, which will contain the government’s estimated receipts and expenditure across various sectors, is expected to be presented in Parliament next month, possibly on July 23 or 24.

Also read: Budget 2024 expectations: Income tax exemption, old pension scheme- what the salaried class wants from Finance Minister Sitharaman

Highest ever fund allocation given to education sector for financial year 2023-24 1.12 lakh crore, compared to Rs 1.04 lakh crore in FY 2022-23.

Budget set for FY 2023-24 ₹68,804 crore for school education, Rs 44,094.62 crore for higher education, and A provision of Rs 37,453 crore has been made for the Samagra Shiksha Abhiyan (SSA). Experts have urged the newly elected government to increase investment in skill development and focus more on digital infrastructure.

• Arun Rajamani, Managing Director, Cambridge University Press and Assessment, said, “Supplemental investment will help move the sector forward… Upskilling and professional development of faculty and school leaders is imperative. This will enhance their pedagogical skills and technological literacy, ensuring that they can provide an effective, high-quality and modern education to students.

Also read: Budget 2024: Why is it appropriate for Finance Minister Nirmala Sitharaman to increase Section 80C deduction limit for income tax payers?

He said, “To fulfil the objectives of NEP (National Education Policy), digitalisation must be put at the forefront to ensure greater access to meaningful and affordable educational resources tailored to their needs.”

Rajamani expressed the following expectations from the Union Budget:

1. Investing in skills development.
2. Better access to meaningful and affordable educational resources through digitization.
3. GST on book printing reduced to 5 per cent to reduce input costs.
4. Promote India’s research ecosystem and innovation landscape through targeted budgetary allocations.
5. Focused investments on language proficiency, particularly in English.
6. Reduction in interest rates on education loans to reduce financial stress.

Also read: Budget 2024: Fiscal aid tops states’ wish list

• V Ramgopal Rao, vice-chancellor of BITS Pilani Group of Institutions and former director of IIT Delhi, suggested increasing the budgetary allocation for research and development. “Despite being ranked third globally for scientific research, India’s 40th rank in innovation is worrisome. R&D expenditure is just 0.65 per cent of GDP, which is much lower than the BRICS average and the global average of 1.8 per cent, so it is important to increase this investment,” he said.

“The National Research Foundation (NRF) should play a key role in addressing these gaps. More schemes targeting academia-industry collaboration are the need of the hour,” Rao said.

He called for improving domestic education standards amid a growing trend among Indian students to study abroad.

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Published: June 27, 2024, 03:56 PM IST

Murmu said, “Along with important economic and social decisions, this budget will also include many historic steps as the government prepares to present its first budget in the coming session. It will be an effective document outlining the government’s far-reaching policies and vision for the future.”

The Union Finance Minister is expected to present the budget for the financial year 2024-25 next month.

Murmu said reforms in infrastructure development, manufacturing and industrial policy, digital economy, green energy transition, agriculture, healthcare and financial sectors have helped strengthen India’s economy.

Read this also |Unemployment and inflation require revision of budget priorities

“India has become the 5th largest economy from the 11th in a decade,” Murmu said. “When we celebrate the 100th anniversary of independence as a developed India in 2047, the credit for this will also go to the current generation. This century is India’s century and its impact will last for a thousand years to come.”

In his address, the President also mentioned the Emergency, which angered the opposition leaders in the House and they started raising slogans against the government.

Examination reforms

The President emphasized that the Government is working towards bringing about major reforms in the examination bodies, covering all aspects of their functioning and examination process.

He also stressed the need for a strong mechanism to prevent leakage of examination papers for admission to higher education courses.

The President said, “Regarding the recent incidents of leakage of question papers in some examinations, the Government is committed to ensuring fair investigation and severe punishment to the culprits.”

He said, “It is important that we rise above party politics and take concrete steps across the country. Parliament has also made strict laws against unfair means in examinations.”

Promoting investment and employment

Mumru said the government is giving priority to all three pillars of the economy – manufacturing, services and agriculture – and its production-linked incentive (PLI) schemes and improvements in ease of doing business have significantly increased investment and employment opportunities.

The President said the Government is also aggressively promoting emerging sectors such as semiconductors, solar energy, electric vehicles, electronic goods and green hydrogen.

Mumru said, “India has grown at an average rate of 8% annually from 2021 to 2024. And India has achieved this growth despite the global pandemic and ongoing conflicts in different parts of the world.” He said that India is contributing 15% to global economic growth.

Read this also |The central government may increase the amount of interest-free loan given to the states in the upcoming budget

On the role of states, Mumru said, “The government believes that there should be healthy competition among states to attract investors from across the world. This is the true spirit of competitive cooperative federalism as the development of the country lies in the development of states.”

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Published: June 27, 2024, 02:50 PM IST

Union Budget 2024-25 It is expected that this bill will be introduced in Parliament on 23 or 24 July.

Budget Expectations

Salaried employees are expecting several favourable announcements, including increase in income tax exemption, restoration of Old Pension Scheme (OPS) and formation of 8th Pay Commission.

The last Pay Commission was constituted in 2014 and its recommendations were implemented in January 2016.

They also want the income tax slabs under the old tax regime to be adjusted or the tax exemption limit to be increased for the new tax regime.

To boost consumption, the government may provide some tax relief to those earning more than Rs 10 lakh. Reducing income tax rates for people earning more than Rs 15 lakh per annum can also be considered. According to the report of news agency Reuters, its price is Rs 10 lakh.

In the pre-budget meeting on Monday, the trade unions placed some key demands before the Finance Minister.

The unions had demanded the government to halt the privatisation drive of public sector undertakings, scrap the New Pension Scheme, fill all existing vacancies in central government departments and public sector undertakings, and stop the practice of contractualisation and outsourcing.

“The maximum limit of income-tax exemption for the salaried class on their wages and gratuity should be substantially increased. Government-sponsored social security funds should be set up for unorganised workers and agricultural labour to provide them with defined universal social security schemes including minimum pension. “The government should provide Rs 9,000 per month and other medical, educational benefits,” the central trade unions said in their memorandum.

“The tax structure has been distorted by the unjustifiable reduction in corporate tax rates over the last several decades coupled with the increase in the indirect tax burden on ordinary people. This must be corrected in the interest of fairness, equity and equity. Even imposing an inheritance tax on the super-rich with a ceiling of one per cent can substantially increase budget receipts,” it said.

Several industry leaders had also urged the government to focus more on infrastructure development to sustain high economic growth.

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Published: June 26, 2024, 07:15 PM IST

Agricultural growth is expected to be six per cent in the current financial year 2024-25 (FY25). According to most industry bodies, the way forward for India’s agriculture and farming sector depends on technological interventions, strong rural infrastructure, private sector participation, market liberalisation and efficient resource utilisation.

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Published: June 25, 2024, 08:50 PM IST

Finance ministry officials are evaluating proposals to cut taxes for consumers who are likely to spend the most. The likely beneficiaries are individuals who earn between Rs 2000-2500. He said that people earning between Rs 5-10 lakh per annum are currently taxed at a rate of 5-20 per cent. A new tax slab may also be introduced, the report said.

Ongoing discussions and financial discipline

The plan is still under development, the report said. A final decision is expected closer to the announcement of Budget 2024 in July, pending approval from the Prime Minister’s Office (PMO).

Despite the estimated revenue loss from the tax changes, the government intends to stick to its fiscal deficit target of 5.1 percent of GDP for the current financial year, a source told the publication.

About half of the proposed ₹50,000 crore ( 500 billion) of the measures will come from tax cuts, while the rest will come from other programs. Discussions include increasing annual cash payments to small farmers ₹6,000-8,000. It also said talks were also underway about increasing annual payments under the minimum job guarantee programme and enhancing financial support for women farmers.

Pre-Budget Consultations and Political Context

Finance Minister Nirmala Sitharaman is holding pre-budget consultations with various stakeholders, including economists, trade unions and industry chambers this week. Local media suggest the Union Budget may be announced on July 22.

A Finance Ministry spokesperson did not respond to a request for further information.

In the recent parliamentary elections, Modi’s Bharatiya Janata Party (BJP) failed to win an absolute majority for the first time since coming to power in 2014, due to voter concerns over unemployment and high living costs. Economists suggest the BJP’s weak electoral performance could lead to more populist spending measures in the budget.

An official stressed that the government must pump money into the economy to achieve faster results. Despite the additional spending, the government aims to maintain its fiscal deficit target, supported by strong revenues and a $25 billion dividend from the central bank.

Upcoming assembly elections in key regions, including Maharashtra, are putting pressure on the BJP to boost its support. Private consumption, which includes household and business spending, grew 4 percent last fiscal year, far below the economic growth rate of 8.2 percent in the same period.

(With inputs from Bloomberg)

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Published: June 21, 2024, 02:20 PM IST