Finance Minister Nirmala Sitharaman to Present Union Budget 2024-25
The Union Budget for 2024-25 will be presented in Parliament this Tuesday by Finance Minister Nirmala Sitharaman. This will be the first budget under Prime Minister Narendra Modi’s third term. An Interim Budget was presented earlier this year to manage the financial needs during the transition period.
With the Union Budget 2024 approaching, various sectors including financial markets, corporates, and entrepreneurs have voiced their expectations. These stakeholders play a crucial role in the nation’s economic growth and stability.
Expectations from Different Sectors
Finance and Regulations
Prashant Bothra, CEO and Founder of Fhero Accounting Solutions, anticipates changes in the Securities Transaction Tax (STT) and taxes on long-term and short-term capital gains. He also expects tighter regulations on futures and options to reduce speculative trading.
Agrochemicals and IT
Ankur Saraswat, a Research Analyst for Trustline Securities Limited, suggests implementing Production-Linked Incentive (PLI) benefits and lowering GST rates for agrochemicals. The IT sector seeks digitalization and technological advancement.
Healthcare and Specialty Chemicals
The healthcare sector needs increased spending on technology integration, while the specialty chemicals industry calls for faster capital expenditure approvals and R&D incentives.
Steel Sector
The steel sector expects reduced taxes on raw materials and higher import duties on Chinese steel to enhance competitiveness.
MSMEs
The MSME sector, a vibrant part of the Indian economy, seeks initiatives to reduce compliance burdens and streamline approval processes. Bothra also emphasizes the need for significant budget allocations for upskilling and reskilling programs in automation, AI, and data analytics.
Startups
Saraswat adds that the budget is expected to impact Indian startup investment significantly, with increased allocations for digital infrastructure, AI, and cybersecurity.
Gold Industry
Sachin Jain, Regional CEO of the World Gold Council, expects the government to reduce import duty on gold and facilitate the orderly growth of the digital gold market.
Agriculture
Ajai Rana, Chairman of the Federation of Seed Industry of India, calls for a conducive policy and regulatory environment to encourage private-sector investments in R&D in agriculture.
Doubts Revealed
Finance Minister -: The Finance Minister is a person in the government who is responsible for managing the country’s money and finances. In India, this person is Nirmala Sitharaman.
Union Budget -: The Union Budget is a plan made by the government about how it will earn and spend money in the coming year. It includes details about taxes, spending on public services, and other financial plans.
2024-25 -: This refers to the financial year starting from April 1, 2024, to March 31, 2025. It is the period for which the budget is planned.
Prime Minister Narendra Modi -: Narendra Modi is the current Prime Minister of India. He is the leader of the government and makes important decisions for the country.
third term -: A term is a period during which someone holds a particular office. Narendra Modi is serving his third term as Prime Minister, meaning he has been elected three times.
sectors -: Sectors are different parts of the economy, like finance, IT (Information Technology), healthcare, and MSMEs (Micro, Small, and Medium Enterprises). Each sector has its own needs and expectations from the budget.
Prashant Bothra -: Prashant Bothra is a key figure or expert who discusses financial matters and what changes might happen in the budget.
Ankur Saraswat -: Ankur Saraswat is another expert who talks about potential changes in taxes, regulations, and incentives in the budget.
taxes -: Taxes are money that people and businesses have to pay to the government. The government uses this money to provide public services like schools, hospitals, and roads.
regulations -: Regulations are rules made by the government to control how things are done in different sectors. They help ensure safety, fairness, and efficiency.
incentives -: Incentives are benefits or rewards given by the government to encourage people or businesses to do certain things, like investing in new technologies or starting new businesses.
import duties -: Import duties are taxes that the government charges on goods brought into the country from abroad. The gold industry wants these taxes to be lower.
agriculture sector -: The agriculture sector includes all activities related to farming and growing food. This sector wants more investment in R&D (Research and Development) to improve farming techniques and crop yields.
R&D investments -: R&D stands for Research and Development. Investments in R&D help create new technologies and improve existing ones, which can lead to better products and services.
economic growth -: Economic growth means an increase in the production of goods and services in a country. It usually leads to more jobs and better living standards for people.
innovation -: Innovation is the process of creating new ideas, products, or methods. It helps in making things better and more efficient.
