Budget 2024: Expectations and unlikely announcements
Interim Budget 2024: As Finance Minister Nirmala Sitharaman prepares to present the Interim Budget for 2024-25, there is a sense of anticipation and optimism. However, economists suggest that the budget may lean towards restraint given the current global economic challenges and India's pursuit of a self-reliant 'Atmanirbhar' economy.
Crucial Moment for the Economy
This budget assumes significance as it unfolds against the backdrop of the global economic landscape and India's ambitious goal of self-reliance. The Interim Budget 2024 is expected to outline the financial roadmap for the initial months of the fiscal year, ensuring the seamless functioning of government operations until a new government is formed post-election.
Populist Expectations Amidst Elections
With the Lok Sabha elections on the horizon, there is a heightened anticipation of populist announcements in Nirmala Sitharaman’s budget presentation. The public expects measures that resonate with the masses as politicians vie for support in the upcoming elections.
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Despite the high expectations, certain aspects are unlikely to be prominent in the announcements.
Major Policy Changes
The Interim Budget, being temporary in nature and in close proximity to the General Election, is unlikely to introduce groundbreaking policy changes or financial overhauls. The focus is expected to be on immediate expenditures rather than long-term economic strategies.
Income Tax Relief
Significant reforms in tax structures are traditionally reserved for full budgets. Thus, individuals and corporations anticipating substantial tax cuts or overhauls may need to exercise patience until the comprehensive budget is presented later in the year.
New Welfare Schemes
While social sector schemes will likely be a focal point, launching new, large-scale welfare programs is improbable during an interim budget. Initiatives of this nature necessitate extensive financial commitments, which are more suited for a comprehensive budget discussion post-elections.
Aggressive Fiscal Consolidation
While a reduction in the fiscal deficit is a goal, aggressive fiscal consolidation measures may not find a place in the interim budget. The primary objective is to maintain economic stability rather than implement rigorous fiscal discipline during this interim period.
New Financial Regulations
The Interim Budget is not the platform for sweeping changes to financial regulations or the introduction of complex regulatory frameworks. Such decisions are typically made with a full budget, providing more scope for debate and long-term planning.
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