Interim Budget 2024: Key Highlights and Developments
Regular post-retirement income | Additional tax benefit on investments up to ₹50,000 u/s 80CCD (1B) - EEE Category | Regulated by PFRDA (Pension fund regulator under Ministry of Finance, Govt. of India) Invest Now
Interim Budget 2024-25 Live Updates
Finance Minister Nirmala Sitharaman is gearing up to present her sixth consecutive budget on 1st February 2024. It will be an interim budget due to the impending general elections. This type of budget ensures continuity in spending without introducing major policy changes until the new government takes office. Despite its interim nature, the budget is expected to include measures aimed at pleasing voters, such as tax relief to aid in consumer spending.
Here are some of the key highlights that the Interim Budget may address:
Fiscal Prudence in Focus: Addressing the Deficit Challenge
Although interim budgets typically focus on essential expenses without major policy announcements, this one is anticipated to address certain key issues. Fiscal prudence remains important, with efforts to reduce the fiscal deficit in line with post-pandemic consolidation goals.
Anticipated Adjustments to the Tax Structure
Tax changes are expected, including targeted relief for taxpayers under the old regime and potential incentives for consumer spending.
Home Loan Dynamics
The housing sector anticipates revisions to home loan interest deductions to promote home ownership and real estate growth.
Increased Budget for Subsidies
Substantial allocations for food and fertilizer subsidies reflect welfare priorities ahead of the elections.
Balancing Growth and Fiscal Goals
Despite the need for economic stimulus, spending growth is likely to be limited to align with revenue trajectories.
Investment Incentives for MSMEs
The budget may also introduce measures to incentivize investments, particularly for retail investors and MSMEs.
Changes in the GST regime are expected to focus on simplification and compliance improvements.
Overall, the interim budget signals a commitment to responsible spending and long-term economic stability, balancing fiscal consolidation with measures to stimulate growth and ease the tax burden. The full budget will reveal the comprehensive plan for India's economic trajectory.