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Budget and Markets
Smart Talk: Allocation towards Atmnanirbhar Bharat, infra and digitisation likely in final Budget 2024: Sandeep Raina
What to expect from real estate and infra sector in upcoming Budget? Keki Mistry answers
How stock markets have behaved before and after Budgets since 2000
Budget 2024: Jefferies sees affordable housing, capex-related businesses, consumer goods sectors getting the most benefit
3 themes to bet on now for pre-Budget plays: Gurmeet Chadha
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Budget Basics
Why the human angle is so important in Budgets
What does the govt spend on? The politics and economy of expenditure
How Union budget is different from your household budget
What goes into the making of the Union budget? Here's a step-by-step breakdown
What is the budget gap? How does the government fill it?
What do the big numbers in the Budget actually mean?
Where does government get all the money it needs?
What exactly are the govt's priorities in a budget?
All the budget jargon simplified just for you
How to get past the long Budget speeches and get to the point
Confused about the calculations? This is how the budget math works
Your complete guide to what each budget document holds
Sectors In Focus
Auto
Footfalls at auto dealers fall in June, so do RTO registrations
Ather Energy aims to raise market share with foray into family scooter segment
Bajaj Auto looks to disrupt market with its CNG motorcycle Freedom 125, return favour to its arch-rival
Auto sales muted as extreme heatwave cools demand in July
Bajaj Auto Freedom 125: CNG fuel costs Rs 1/km, petrol 2.25/km, Gadkari lauds the R&D effort
Tech
‘Should have done better … now learnt the lesson,’ says Paytm founder
Inside the rise and fall of Indian Twitter rival Koo
Zepto is hyperlocal Walmart of India, will focus on top 40 cities: CEO Aadit Palicha
India has deep expertise, scalability to become global player in semiconductor industry: IT secretary
Top startup and tech stories this week
Renewables
Ather Energy aims to raise market share with foray into family scooter segment
Xiaomi's newly-unveiled SU7 EV quietly brought to India, to be showcased in Bengaluru; no news on launch date
Tesla’s loss, not India: Ola's Bhavesh Aggarwal reacts to India-Elon Musk deal not moving forward
BYD's steep EV discounting in Thailand sparks backlash, PM Srettha Thavisin seeks assurances
India's biggest concentrated solar tender likely this year
Banking
Bandhan Bank names Ratan Kumar Kesh as interim head
RBI penalizes PNB, four other banks for regulatory non-compliance in first week of July
Budget 2024: Savings account interest up to Rs 25,000 may get tax exempt
ONGC Videsh to raise USD 800 million from 3 banks
BoB loan book grows 8% in Q1; IndusInd's net advances up 16%
Healthcare
Fortis designates Prem Kumar Nair as Vice-Chairman
Nutrition advocacy NAPi calls for amending regulations for ads of unhealthy foods
Need to sensitise foreign nationals on organ transplant guidelines in India: Health ministry
Inclusive healthcare: H.E. Dr. Noura Khamis Al Ghaithi on Abu Dhabi’s vision beyond borders
Living with diabetes: A holistic approach
MSME
Tighter regulations are for the greater good of fintech ecosystem, not obstacles, say industry leaders
India’s SME IPOs: From a quiet start to bull run
MSMEs & green finance: How fintechs can help small businesses adopt sustainability
Shipping delays and disruptions erode profitability of MSMEs: Ketan Kulkarni, Allcargo Group
ESG consultancies and services on the rise as companies rush to get sustainability tag
Details on Budget 2024
Union Budget 2024
Budget 2024 is now the focal point following the Lok Sabha 2024 elections, the world’s largest democratic exercise, where Narendra Modi secured a record-equalling third term as Prime Minister with the support of coalition parties. Nirmala Sitharaman returned as the Finance Minister for her second term and will present the Union Budget that will likely lay out the roadmap for the new government, or Modi 3.0 as popularly called.
As BJP did not secure a majority on its own, there is speculation that Sitharaman may introduce additional welfare measures to support the lower and middle classes in the world’s most populous country. These measures could be politically significant, as the Lok Sabha election results indicate weaker sentiment among these groups.
This may however have an impact on the country’s fiscal deficit, which the government has been trying to control and bring down to 4.5% by fiscal 2026.
The new coalition government is expected to follow its medium-term plan for reducing the budget deficit, but it might include more populist measures in its first budget after the elections, global investment bank UBS said in a report.
India has also ramped up its capex to shore up growth in an economy that is fighting a major issue of unemployment while it’s also trying to arrest the galloping inflation rate.
The upcoming Budget will thus have key tasks of addressing these issues, juggling between controlling fiscal deficit and pumping enough money in the economy that has set eyes to become world’s third largest by 2030.
While the Narendra Modi government has returned for the third term with a weaker mandate and provided some space for coalition parties in the ministries, New Delhi hasn’t tinkered with the bosses of some key ministries such as finance and defence, indicating policy continuity.
Supply-side reforms related to manufacturing, labor laws, and skill development are likely to continue and some economists expect private capital expenditure recovery to gain momentum.
Key issues for Modi 3.0 to fix in Budget
While lack of jobs is one of the most critical issues that the government needs to address, there is also a general sense of income inequality. The quality of jobs in India has also been a major concern.
Inflation also continues to be a pressing concern. Managing household expenses is becoming increasingly challenging for many Indian families at a time when household savings have taken a hit.
The main policy priorities for the Budget will include addressing the stress in the agriculture sector, creating jobs, maintaining capital expenditure momentum, and boosting revenue growth to stay on the path of fiscal consolidation.
When will India announce the Budget?
The first session of the 18th Lok Sabha will be held from June 24 to July 7 for oath or affirmation of the newly elected members. However, Parliamentary Affairs Minister Kiren Rijiju did not mention about presenting the Budget in this session.
The Economic Times had reported the new government may split the Budget session - with oath taking and the motion of thanks in the first part, and the budget presented in the latter. ET had reported citing unnamed sources that the second part of the Budget session is likely to begin on July 22, with the presentation of the Union budget.
What happened in the interim Budget?
India had presented the interim Budget in February and the government had abstained from splashing populist measures ahead of the Lok Sabha elections.
While all eyes focused on the tax relief measures that the Interim Budget may announce before elections, Sitharaman didn't make any change to direct tax rates - be it for individuals or corporates.
Aiming to reach a fiscal deficit level below 4.5 per cent of the GDP by 2025-26, Sitharaman fixed the deficit for 2024-25 at 5.1%, below the revised 5.8% budgeted for 2023-24.
Sitharaman also proposed to raise the capital expenditure target by 11.1% to record Rs. 11.11 lakh crore for the next fiscal year, as the government hoped to further shore up demand and consumption. Capital expenditure means spending on infrastructure such as roads and railways.
Budget 2024 is now the focal point following the Lok Sabha 2024 elections, the world’s largest democratic exercise, where Narendra Modi secured a record-equalling third term as Prime Minister with the support of coalition parties. Nirmala Sitharaman returned as the Finance Minister for her second term and will present the Union Budget that will likely lay out the roadmap for the new government, or Modi 3.0 as popularly called.
As BJP did not secure a majority on its own, there is speculation that Sitharaman may introduce additional welfare measures to support the lower and middle classes in the world’s most populous country. These measures could be politically significant, as the Lok Sabha election results indicate weaker sentiment among these groups.
This may however have an impact on the country’s fiscal deficit, which the government has been trying to control and bring down to 4.5% by fiscal 2026.
The new coalition government is expected to follow its medium-term plan for reducing the budget deficit, but it might include more populist measures in its first budget after the elections, global investment bank UBS said in a report.
India has also ramped up its capex to shore up growth in an economy that is fighting a major issue of unemployment while it’s also trying to arrest the galloping inflation rate.
The upcoming Budget will thus have key tasks of addressing these issues, juggling between controlling fiscal deficit and pumping enough money in the economy that has set eyes to become world’s third largest by 2030.
While the Narendra Modi government has returned for the third term with a weaker mandate and provided some space for coalition parties in the ministries, New Delhi hasn’t tinkered with the bosses of some key ministries such as finance and defence, indicating policy continuity.
Supply-side reforms related to manufacturing, labor laws, and skill development are likely to continue and some economists expect private capital expenditure recovery to gain momentum.
Key issues for Modi 3.0 to fix in Budget
While lack of jobs is one of the most critical issues that the government needs to address, there is also a general sense of income inequality. The quality of jobs in India has also been a major concern.
Inflation also continues to be a pressing concern. Managing household expenses is becoming increasingly challenging for many Indian families at a time when household savings have taken a hit.
The main policy priorities for the Budget will include addressing the stress in the agriculture sector, creating jobs, maintaining capital expenditure momentum, and boosting revenue growth to stay on the path of fiscal consolidation.
When will India announce the Budget?
The first session of the 18th Lok Sabha will be held from June 24 to July 7 for oath or affirmation of the newly elected members. However, Parliamentary Affairs Minister Kiren Rijiju did not mention about presenting the Budget in this session.
The Economic Times had reported the new government may split the Budget session - with oath taking and the motion of thanks in the first part, and the budget presented in the latter. ET had reported citing unnamed sources that the second part of the Budget session is likely to begin on July 22, with the presentation of the Union budget.
What happened in the interim Budget?
India had presented the interim Budget in February and the government had abstained from splashing populist measures ahead of the Lok Sabha elections.
While all eyes focused on the tax relief measures that the Interim Budget may announce before elections, Sitharaman didn't make any change to direct tax rates - be it for individuals or corporates.
Aiming to reach a fiscal deficit level below 4.5 per cent of the GDP by 2025-26, Sitharaman fixed the deficit for 2024-25 at 5.1%, below the revised 5.8% budgeted for 2023-24.
Sitharaman also proposed to raise the capital expenditure target by 11.1% to record Rs. 11.11 lakh crore for the next fiscal year, as the government hoped to further shore up demand and consumption. Capital expenditure means spending on infrastructure such as roads and railways.