LIVE BUDGET 2024
JULY 23, 2024 / 12:56 PM IST
Highlights of Budget 2024: The stock markets experience a sharp decline following the Finance Minister's increase in Long-Term Capital Gains (LTCG) and Short-Term Capital Gains (STCG) taxes, along with the taxation of income from share buybacks.
The stock market indices plummeted following the announcement by Finance Minister Nirmala Sitharaman of an increase in the long-term capital gains tax.
During the presentation of the union budget, the finance minister raised the LTCG on securities from 10% to 12.5%, and also increased the short-term capital gains tax from 15% to 20%.
Furthermore, income generated from share buybacks will now be subject to taxation for the recipient.
The Sensex, comprising 30 stocks, dropped by more than 1000 points or 1.35% to reach 79416, while the broader Nifty declined by 1.38% or 337 points to 24,172.
JULY 23, 2024 / 12:50 PM IST
Highlights of Budget 2024: Income tax announcements by the Finance Minister
• The income-tax slab rates have been revised for the lower slabs under the new simplified income tax regime.
• The standard deduction for taxpayers choosing the new tax regime has been increased to Rs 75,000 from the previous Rs 50,000.
• Budget 2024 introduced NPS Vaatsalya for minor children, allowing parents to invest on their behalf. Upon reaching adulthood, this can be converted into a regular NPS.
• The deduction on employers’ contribution to NPS for private sector employees has been raised to 14% from 10% for those under the new income-tax regime.
• Changes have been made to the capital gains tax regime, with the long-term capital gains rate increased to 12.5% from 10%.
• Long-term capital gains income up to Rs 1.25 lakh is now exempt from tax.
• The holding period for capital gains tax has been standardized: all listed financial assets held for over a year are considered long-term, while all unlisted financial and non-financial assets held for over 2 years are also classified as long-term.
JULY 23, 2024 / 12:36 PM IST
Budget 2024 Update: The maximum Short-Term Capital Gains (STCG) tax has been increased to 20%, while Long-Term Capital Gains (LTCG) have been raised from 10% to 12.5%.
The sudden change involves an increase in short-term capital gains tax to 20% from 15% and long-term gains to 12.5% from 10%. Additionally, there will be a rise in Securities Transaction Tax (STT) on futures and options, and income from buybacks will now be taxable. While these changes may have a short-term negative impact, they are not expected to significantly change the overall market direction.
JULY 23, 2024 / 12:31 PM IST
Budget 2024 Live: Updated tax brackets in the new system
0-3 lakh - Nil
3-7 lakh - 5%
7-10 lakh - 10%
12-15 lakh - 20%
JULY 23, 2024 / 12:28 PM IST
Live coverage of Budget 2024: FM updates tax structure within the new tax system.
With the implementation of the new tax system, the standard deduction has been increased to Rs 75,000 from Rs 50,000.
As a result, salaried employees will benefit from a reduction of Rs 17,500 in income tax.
JULY 23, 2024 / 12:25 PM IST
Budget 2024 Live Update: Finance Minister Sitharaman announces an increase in STT on F&O to 0.02% and 0.1%.
JULY 23, 2024 / 12:22 PM IST
Budget 2024 Live Update: The corporate tax rate for foreign companies has been lowered to 25%.
JULY 23, 2024 / 12:22 PM IST
Live coverage of Budget 2024: Startups receive relief as FM Sitharaman announces the abolition of Angel tax.
JULY 23, 2024 / 12:19 PM IST
Budget 2024 Live Update: LTCG limit increased from 10% to 12.5%
There will be a 20 percent short-term gain on specific financial assets, with the remaining amount subject to the applicable tax rate.
Long-term capital gains are set at 12.5 percent.
Financial assets listed and held for over a year will be considered long-term.
JULY 23, 2024 / 12:18 PM IST
Live coverage of Budget 2024: The TDS rate for e-commerce operators will be decreased from 1 percent to 0.1 percent.
JULY 23, 2024 / 12:17 PM IST
Live Update: Budget 2024 reveals that the Centre plans to borrow Rs 14.01 lakh crore in FY25, which is less than the estimate in the interim Budget.
Finance Minister Nirmala Sitharaman announced on July 23 that the Centre slightly reduced the gross borrowing target from the markets in 2024-25 to Rs 14.01 lakh crore to cover its fiscal deficit of 4.9 percent of the GDP in the speech presenting the complete Budget for 2024-25.
This marks a decrease of Rs 1.4 lakh crore compared to the earlier estimate of Rs 15.43 lakh crore for FY24.
JULY 23, 2024 / 12:18 PM IST
Budget 2024 Live Update: The TDS rate for e-commerce operators will be decreased to 0.1 percent from 1 percent.
JULY 23, 2024 / 12:17 PM IST
Live Coverage of Budget 2024: The Centre plans to borrow Rs 14.01 lakh crore in FY25, which is below the estimate in the interim Budget.
Finance Minister Nirmala Sitharaman revealed on July 23 that the Centre has slightly reduced the gross borrowing target for the 2024-25 fiscal year to Rs 14.01 lakh crore to cover the fiscal deficit of 4.9 percent of the GDP. This adjustment is Rs 1.4 lakh crore less than the earlier projection of Rs 15.43 lakh crore for FY24, as announced during the presentation of the complete Budget for 2024-25.
JULY 23, 2024 / 12:15 PM IST
Live coverage of Budget 2024: The thorough examination of the Income Tax Act of 1961 is expected to be finished within six months
JULY 23, 2024 / 12:14 PM IST
Live coverage of the 2024 Union Budget: The Finance Minister highlighted the importance of job creation and enhancing employability through various measures.
The finance minister, Nirmala Sitharaman, has shifted focus towards job creation and enhancing employability by implementing a series of measures. The challenge of continuously generating millions of jobs for the increasing number of young individuals seeking employment annually remains a key long-term policy issue in India.
A new internship program has been introduced, allowing companies to hire interns for a monthly stipend of Rs 5,000 for a year, utilizing corporate social responsibility (CSR) funds. The objective is to skill ten million youth over the span of five years through this initiative.
Furthermore, a new e-voucher scheme has been unveiled, offering loans of up to Rs 10 lakhs for higher education in local institutions. This scheme will directly benefit 1 lakh students annually with an annual interest subvention of 3 percent of the loan amount.
In a bid to support first-time employees, a direct benefit transfer scheme has been launched, providing a one-month salary in three installments of up to Rs 15,000 to new employees registered in EPFO.
To stimulate job creation in the manufacturing sector, incentives will be provided directly to both employees and employers based on their EPFO contributions during the initial four years of employment.
Additionally, as a measure to assist employers, reimbursement of up to Rs 3,000 per month for two years will be granted towards their EPFO contributions for each additional employee hired.
JULY 23, 2024 / 12:12 PM IST
Live coverage of the 2024 Union Budget: Update on fiscal consolidation
It is estimated that receipts for FY25 will amount to Rs 32.07 lakh crore.
Expenditure for FY25 is projected to reach Rs 48.21 lakh crore.
JULY 23, 2024 / 12:10 PM IST
Watch the live coverage of the 2024 Union Budget announcement regarding the customs duty on critical minerals.
FM has waived customs duties on 25 essential minerals and reduced basic customs duty for two of them.
JULY 23, 2024 / 12:09 PM IST
Live coverage of the Union Budget 2024: Positive developments for purchasers of mobile phones!
FM announced a reduction in the basic customs duty (BCD) for mobile phones and mobile chargers to 15 percent.
JULY 23, 2024 / 12:05 PM IST
Live coverage of Union Budget 2024 reveals a reduction in fiscal deficit to 4.9% of GDP, with market borrowing remaining steady at Rs 14.13 lakh crore.
FM Sitharaman has revised the fiscal deficit for FY25 to 4.9% from the previously projected 5.1% in the interim Budget.
The Finance Minister aims to achieve a fiscal deficit of less than 4.5% by FY26.
JULY 23, 2024 / 12:02 PM IST
Live coverage of the Union Budget 2024: Urban Development holds the fifth position in budget priorities.
•Urban Housing: Urban 2.0 initiative aims to provide one crore houses for the urban poor, with an allocation of ten lakh crore rupees.
• Implementing policies and regulations to ensure transparency in the rental housing markets
• Providing services for urban development in 100 major cities
• Street Markets: Svanidhi program has positively impacted the lives of street vendors, with support for urban haats
• Stamp Duty: States are encouraged to levy higher stamp duty to stabilize rates for all, while reducing duties for women
JULY 23, 2024 / 12:01 PM IST
Live coverage of the Union Budget 2024: Government's initiatives for enhancing skills and fostering partnerships.
The fourth initiative within the Prime Minister's program aims to enhance skills and foster collaboration with state governments and industries. Over a span of five years, 20 lakh young individuals will receive training. Additionally, 1000 ITIs will be modernized through Hub and Spoke partnerships with a focus on achieving results. The Model Skill Loan program will be revamped to enable loans of up to Rs 7.5 lakh, backed by a government-supported fund guarantee. Furthermore, to assist young individuals who have not qualified for any government schemes, a financial aid program has been introduced to provide loans of up to Rs 10 lakh for higher education at local institutions.
JULY 23, 2024 / 11:59 AM IST
Live Coverage of Union Budget 2024: Relief as Capex budget remains unchanged
The unchanged Capex budget of Rs 11.11 lac cr from the Interim budget brings relief. However, the current announcements indicate a clear accommodation of coalition partners, which may not be well-received by the markets.
JULY 23, 2024 / 11:58 AM IST
Live coverage of the Union Budget 2024 reveals that the efforts to accelerate the IBC process through budget announcements are praiseworthy.
FM Sitharaman's Budget proposals aimed at expediting the IBC process are praiseworthy. The government plans to establish a comprehensive technology system for IBC to enhance its effectiveness. The initiative to introduce necessary modifications to IBC is likely to facilitate quicker asset resolution; the establishment of more specialized tribunals will support this effort. Nevertheless, the actual impact will hinge on successful implementation at the grassroots level.
JULY 23, 2024 / 11:56 AM IST
Live coverage of Union Budget 2024: A significant increase of Rs 1,000 crore allocated to the space economy!
The space economy is projected to grow fivefold in the next decade.
An increase of Rs 1,000 crore has been announced to support the space sector.
JULY 23, 2024 / 11:54 AM IST
Live coverage of Union Budget 2024: Providing financial aid to Sikkim, Assam, Uttarakhand, and Himachal Pradesh, states affected by floods.
The Finance Minister has stated that assistance will be given to Assam and Himachal Pradesh for flood management.
JULY 23, 2024 / 11:49 AM IST
Live coverage of Union Budget 2024: The Finance Minister maintains capital expenditure at Rs 11.11 lakh crore, equivalent to 3.4% of GDP.
In the first Union Budget of the third Narendra Modi government, Finance Minister Nirmala Sitharaman maintained India's FY25 capex outlay at Rs 11.11 lakh crore on July 23, the same as allocated in February. This amount exceeds the revised estimate of Rs 9.5 lakh crore from the previous year.
JULY 23, 2024 / 11:46 AM IST
Live coverage of Union Budget 2024: The Finance Minister's address includes key initiatives outlined in the BJP's election manifesto.
The Budget speech by the Finance Minister includes key initiatives from the BJP's Lok Sabha election manifesto unveiled during the elections. For example, the Budget introduces a digital public infrastructure (DPI) for agriculture, a scheme that the BJP pledged to implement upon forming the government. Additionally, the finance minister revealed plans for a thorough assessment of agricultural research to develop climate-resilient crop varieties, as outlined in the manifesto. The budget also introduces an internship program for young people, a concept previously highlighted in the manifesto's discussion on launching internship programs to integrate theoretical and practical skills. - Gaurav Choudhury, Consulting Editor, Network 18
JULY 23, 2024 / 11:45 AM IST
Live coverage of the Union Budget 2024 reveals an allocation of Rs 10 lakh crore for urban housing development.
The Finance Minister announced that an investment of Rs 10 lakh crore will be allocated to address the housing needs of 1 crore urban poor and middle-class families.
The government has initiated the PM Surya Ghar Muft Bijli Yojana to provide rooftop solar panels for 1 crore households.
JULY 23, 2024 / 11:42 AM IST
Government plans to establish a comprehensive technology system for the Insolvency and Bankruptcy Code (IBC) to improve results.
Live coverage of Union Budget 2024: Finance Minister reveals new tech platform to enhance IBC results
Extension of C-PACE to LLPs, voluntary shutdown of LLPs to continue
Over 1000 companies dissolved under IBC, leading to direct recovery of Rs 3.3 trillion
Plans to introduce necessary modifications to IBC and establish more tribunals
JULY 23, 2024 / 11:39 AM IST
Live coverage of the 2024 Union Budget: Finance Minister discussing DPI applications
FM Sitharaman proposed the development of DPI applications at a population scale in credit, e-commerce, law and justice, and corporate governance.
JULY 23, 2024 / 11:36 AM IST
Watch the live coverage of Union Budget 2024
The Finance Minister announced that rental housing with dormitory-style accommodation for industrial workers will be supported under the PPP model.
JULY 23, 2024 / 11:35 AM IST
Live coverage of the 2024 Union Budget focusing on job creation!
The government plans to introduce an extensive program that will provide internships at leading companies to one crore young people over the course of five years, announced FM Sitharaman.
JULY 23, 2024 / 11:34 AM IST
Live coverage of Union Budget 2024: Equity markets show lack of enthusiasm towards Budget up to this point.
Equity markets have shown little enthusiasm for the Budget in the initial half-hour since its announcement. The Nifty FMCG and Nifty Realty indices are the only ones in positive territory, supported by the focus on rural development and welfare measures.
JULY 23, 2024 / 11:33 AM IST
Live coverage of Union Budget 2024: FM Sitharaman announces an increase in Mudra loans from 10 lakh to 20 lakh.
Finance Minister Sitharaman announced that the limit for Mudra loans will be increased from Rs 10 lakh to Rs 20 lakh for borrowers who have utilized and repaid their previous loans.
JULY 23, 2024 / 11:31 AM IST
Live coverage of Union Budget 2024 reveals Finance Minister announcing a provision of 2.66 lakh crore for rural development.
JULY 23, 2024 / 11:29 AM IST
Live coverage of the 2024 Union Budget: FM's emphasis on promoting women's development
FM Sitharaman announced over 3 lakh crore for schemes benefiting women and girls, emphasizing development led by women.
JULY 23, 2024 / 11:26 AM IST
Live coverage of the 2024 Union Budget: The Finance Minister reveals Special Financial Assistance for Andhra Pradesh.
--A budget of 15,000 crore has been allocated for Andhra Pradesh, with provisions for additional funding in the coming years
--The government is dedicated to providing financial support and ensuring project completion, stated the Finance Minister
JULY 23, 2024 / 11:25 AM IST
Live coverage of Union Budget 2024: The Finance Minister unveils plans for new airports, healthcare facilities, and sports infrastructure in Bihar.
The Budget has revealed plans for new airports, medical facilities, and sports infrastructure in Bihar.
The Finance Minister has announced an allocation of Rs 26,000 crore for highways in Bihar.
JULY 23, 2024 / 11:19 AM IST
Live coverage of Union Budget 2024: Three programs introduced to provide incentives linked to employment
A: Freshers' salary for one month
B: Boosting job opportunities in the manufacturing sector
C: Assistance provided to employers
JULY 23, 2024 / 11:19 AM IST
Live coverage of the 2024 Union Budget: The Finance Minister begins boldly and decisively.
The FM takes an immediate proactive approach, addressing key political issues such as employment, education, youth, agriculture, and poverty.
JULY 23, 2024 / 11:16 AM IST
Live coverage of Union Budget 2024: FM Sitharaman announces one-month salary assistance for businesses hiring their first employees.
The Finance Minister announced that first-time employees will receive a one-time salary advance under the DBT scheme, capped at Rs 15,000, with an eligibility limit of Rs 1 lakh per month.
Approximately 210 lakh young individuals are expected to benefit from this initiative.
Manufacturing job creation will be incentivized based on EPFO contributions, benefiting 30 lakh young workers and their employers.
JULY 23, 2024 / 11:16 AM IST
Live coverage of the Union Budget 2024 reveals that Finance Minister Sitharaman has allocated Rs 1.52 lakh crore for the agricultural and related sectors.
JULY 23, 2024 / 11:14 AM IST
Live coverage of the Union Budget 2024: Energy Security to be among the Nine Priorities
The Finance Minister, Nirmala Sitharaman, has identified energy security as one of the key priorities of the government. This aligns with the findings of the Economic Survey 2023-24, which emphasized the importance of India diversifying its energy sources to ensure energy security while meeting its nationally determined contribution (NDC) targets. With India's energy requirements projected to increase 2-2.5 times by 2047 due to economic growth, the renewable energy sector continues to face challenges.
As of 2022-23, India's energy mix was predominantly reliant on fossil fuels, comprising approximately 84 percent, which includes coal, oil, and natural gas.
JULY 23, 2024 / 11:13 AM IST
Live coverage of Union Budget 2024: Finance Minister discusses agricultural scheme
FM Sitharaman emphasizes the need to shift agri research towards increasing productivity and developing climate-resilient varieties.
A comprehensive review of the current farm research system will be conducted to focus on creating crop varieties that can withstand climate challenges.
JULY 23, 2024 / 11:11 AM IST
Live coverage of Union Budget 2024: The Finance Minister outlines a plan to follow nine key priorities to seize opportunities for India.
The Finance Minister has outlined a comprehensive plan to focus on nine key areas to create opportunities for India. These priorities include:
Agri
Employment
Inclusive development
Manufacturing and Services
Urban Development
Energy
Infrastructure
Innovation and Research & Development
Next-Generation reforms
JULY 23, 2024 / 11:09 AM IST
Live coverage of Union Budget 2024: The Finance Minister announces five schemes aimed at targeting 4.1 crore young individuals over a period of 5 years, with a central allocation of Rs 2 lakh crore.
The Finance Minister emphasized employment, skilling, MSMEs, and the middle class in this budget.
Five schemes will target 4.1 crore youth over a span of 5 years, with a central outlay of Rs 2 lakh crore, as stated by the Finance Minister.
JULY 23, 2024 / 11:07 AM IST
Live coverage of Union Budget 2024: The Finance Minister highlights India's economic growth as a standout success.
FM Nirmala Sitharaman announced that inflation is approaching the 4 percent target.
The PMGKAY program has been prolonged for five years, providing benefits to over 80 crore individuals, according to the FM.
JULY 23, 2024 / 11:04 AM IST
Live coverage of the Union Budget 2024: FM Sitharaman stands up to deliver the first Budget of Modi 3.0
The initial significant policy announcement by the Modi government is anticipated to prioritize job creation and enhancing consumption, a move that analysts believe will have a positive impact on sectors like consumer goods, real estate, and automobiles.
JULY 23, 2024 / 10:54 AM IST
Live coverage of Union Budget 2024: Finance Minister Sitharaman will soon deliver her unprecedented 7th address in Parliament.
At 11 am, Finance Minister Nirmala Sitharaman will deliver her 7th consecutive Budget for the Modi government. The Interim Budget in February 1 did not introduce significant policy changes or new advantages for the middle class.
In the upcoming Budget, Sitharaman will need to navigate the task of promoting economic growth, managing inflation, and staying committed to fiscal consolidation.
Keep following for all the latest updates on Budget 2024 here.
JULY 23, 2024 / 10:52 AM IST
Live coverage of Union Budget 2024: Will the Budget tackle issues related to capital gains?
Initially, holding equities for up to a year results in the imposition of short-term capital gains tax. Nevertheless, the advantages of capital gains for debt mutual funds were eliminated in 2023. Selling listed debt securities after a year incurs a 10% long-term capital gains (LTCG) tax, without indexation. On the other hand, selling unlisted debt securities after 36 months attracts a 20% LTCG with indexation. Essentially, there is a significant discrepancy in the thresholds and rates of LTCG and short-term gains across various financial instruments. The question remains whether there will be a call for greater consistency in this regard.
JULY 23, 2024 / 10:50 AM IST
Union Budget 2024 Live: There might be an upward revision of the current exemption limit on deposit interest.
Bankers are increasingly seeking to offer depositors some relief or tax benefit. Currently, interest earned on deposits up to Rs 5,000 is exempt from tax. Due to the fierce competition in attracting deposits and banks facing challenges from non-banking savings options, it is expected that the existing exemption threshold for deposit interest could be raised. This adjustment would be advantageous for both depositors and banks.
JULY 23, 2024 / 10:47 AM IST
Live coverage of Union Budget 2024: Fertiliser subsidy to be controlled
The reduction in raw material and feedstock costs may decrease the government's expenditure on fertiliser subsidies. This reduction in subsidies could enable the government to reallocate funds towards more effective purposes. The interim budget estimated the fertiliser subsidy demand for FY25 at Rs 1.64 lakh crore, whereas in FY23, the government's fertiliser subsidy expenses amounted to Rs 2.5 lakh crore.
JULY 23, 2024 / 10:37 AM IST
Live coverage of Union Budget 2024: Cabinet gives green light to Modi 3.0's inaugural Budget; focus on FM Sitharaman's address
Finance Minister Nirmala Sitharaman is set to deliver her 7th consecutive Budget, outlining a vision for a developed India by 2047 and offering insights into the past decade's progress.
The focus will be on whether Sitharaman will offer the anticipated tax cuts for the middle class, enabling them to retain more of their income, given the current tax revenue growth. Additionally, there are expectations from the market for adherence to the fiscal roadmap to reduce the fiscal deficit to 4.5% of GDP by 2025-26.
Updates: https://tanews.online/
JULY 23, 2024 / 10:12 AM IST
Union Budget 2024 Live: Kotak's Nilesh Shah emphasizes that the budget should be as impressive as Surya Kumar Yadav's catch.
The challenge for this Budget is to accomplish the seemingly impossible task of balancing fiscal responsibility, investing in infrastructure, and stimulating consumption, much like Surya Kumar Yadav's catch in the T20 World Cup final, according to Nilesh Shah from Kotak.
JULY 23, 2024 / 10:11 AM IST
Live coverage of Union Budget 2024: Envision's Nilesh Shah states that the government is in a favorable position regarding available revenue.
Nilesh Shah, Envision on Budget 2024: This govt is advantegeously place in terms of revenue at disposal. Infra and investment side of the economy has been in focus for this Govt. Curbing F&O activity beyond a point will impact liquidity. Markets need it and any excessive step may not create a conducive environment.
JULY 23, 2024 / 10:07 AM IST
Live coverage of the Union Budget 2024 reveals that the mining sector is optimistic about receiving increased financial incentives for essential minerals.
Budget commentary
The Economic Survey 2023-24 has raised concerns about the concentrated geographical distribution and trade restrictions on essential and rare earth minerals, which play a crucial role in the advancement of clean energy technologies and electric mobility. These factors are seen as a major obstacle hindering India's renewable energy and electric vehicle (EV) ambitions. In response to this, the Indian government recently launched a new initiative that provides partial reimbursements to exploration license holders for their costs.
There is optimism within the mining sector regarding the possibility of receiving additional financial incentives for critical minerals. If the upcoming budget includes measures like viability gap funding to assist exploration companies facing financial challenges, it could significantly boost the industry.
- Rachita Prasad
Editor- Energy and Infrastructure
JULY 23, 2024 / 09:58 AM IST
Live coverage of the 2024 Union Budget: Indian bond yields remain unchanged before the Budget address at 11 am.
Indian bond yields started the day unchanged and remained steady as investors awaited the announcement of Union budget 2024. The yield on the 10-year benchmark bond maturing in 2034 opened at 6.9662 percent today, slightly lower than the 6.9663 percent closing rate in the previous trading session.
The Indian rupee is also trading largely unchanged ahead of the budget announcement. It opened at 83.64 against the US dollar, compared to 83.67 in the previous trading session. Currently, it is trading at 83.63 against the greenback.
JULY 23, 2024 / 09:52 AM IST
Live coverage of Union Budget 2024: FM Sitharaman presents Budget documents to the President
Accompanied by her team, Finance Minister Nirmala Sitharaman is heading to Rashtrapati Bhawan with a copy of the Union Budget 2024-25 to meet President Droupadi Murmu.
Prior to their departure, they took a photo together with the red 'Bahi Khatha' digital tablet as a memento before proceeding to Rashtrapati Bhavan.
Today at 11 am, Nirmala Sitharaman will present the Union Budget 2024 in Parliament, her seventh consecutive budget, surpassing the late Moraji Desai's record of six consecutive budgets. The budget is expected to concentrate on alterations in the income tax system and enhancing the business environment in India.
JULY 23, 2024 / 09:45 AM IST
Live coverage of the 2024 Union Budget: Stock market remains steady as Sitharaman's speech approaches.
Before Finance Minister Nirmala Sitharaman's Budget speech at 11 am, Sensex and Nifty are trading without much change, following a slightly higher opening.
Indian stocks started the day on a positive note, driven by financial and public sector firms, with investors anticipating significant policy announcements that could impact market trends.
As of 9:15 a.m. IST, the NSE Nifty 50 increased by 0.24% to 24,568.9, and the S&P BSE Sensex rose by 0.28% to 80,724.3.
Despite a nearly 6% decline on June 4 due to the unexpected reliance on allies by Prime Minister Narendra Modi's party after returning to power, the Nifty has reached several record highs this year, with a total gain of approximately 13%. Nevertheless, the index has shown growth in each of the past seven weeks.
JULY 23, 2024 / 09:38 AM IST
Live coverage of Union Budget 2024: Important figures to pay attention to during Sitharaman's significant 7th Budget address
Here are the main figures to keep an eye on in Modi 3.0's first complete Budget:
-- Fiscal Deficit: The estimated fiscal deficit for the ongoing fiscal year stands at 5.1%, as outlined in the Interim Budget in February, down from 5.8% in the previous fiscal year. Anticipations for the full Budget are optimistic due to tax buoyancy.
--The government aims for a fiscal deficit of 4.5% of the GDP in FY26.
-- Capital Expenditure: The planned capital expenditure for this fiscal year is set at Rs 11.1 trillion, higher than the previous year's Rs 9.5 trillion. The government is emphasizing infrastructure development and encouraging states to increase capital expenditure.
-- Tax Revenue: The Interim Budget projected gross tax revenue at Rs 38.31 trillion for 2024-25, indicating an 11.46% growth from the previous fiscal year. This includes an estimated Rs 21.99 trillion from direct taxes (personal income tax + corporate tax) and Rs 16.22 trillion from indirect taxes (customs + excise duty + GST).
-- GST: The Goods and Services Tax (GST) collection for 2024-25 is expected to reach Rs 10.68 trillion, a rise of 11.6%. The tax revenue statistics will be closely monitored in the final Budget for the 2024-25 fiscal year.
-- Borrowing: As per the Interim Budget, the government's gross borrowing Budget for the current fiscal year was Rs 14.13 trillion. Market watchers will be attentive to the borrowing figures, particularly following the higher-than-expected dividend from the RBI and financial institutions.
-- Nominal GDP: The estimated nominal GDP growth (real GDP plus inflation) for the ongoing fiscal year is 10.5% at Rs 327.7 trillion, as per the Interim Budget. With an anticipated normal monsoon, enhanced revenue collections, and increased rural consumption, a growth estimate revision is plausible. Real GDP growth for the current fiscal year is projected at 7.2%, according to the RBI.
--Dividend: The Interim Budget had forecasted Rs 1.02 trillion from the RBI and financial institutions. This is expected to be revised upwards following the RBI's surplus transfer of Rs 2.11 trillion in May. Additionally, an estimated Rs 43,000 crore is anticipated from CPSEs.
--Attention will also be on the expenditure for key schemes like NREGA, as well as critical sectors such as health and education.
JULY 23, 2024 / 09:35 AM IST
Live coverage of the Union Budget 2024: The oil and gas sector anticipates measures to enhance domestic exploration.
Analysis of the budget: The oil and gas sector anticipates measures to enhance domestic exploration and production activities to increase the supply side, as well as reforms to stimulate natural gas consumption to bolster demand. There has been a persistent request for the incorporation of petroleum products under GST. Although the council makes decisions regarding GST, any indication from the Finance Minister in this regard would be welcomed by the industry.
Rachita Prasad
Energy and Infrastructure Editor
JULY 23, 2024 / 09:32 AM IST
Live coverage of the Union Budget 2024 highlights an increase in capital expenditure, a move towards a more standardized taxation approach, as noted by Moody's Analytics.
Moody's Analytics mentioned that the complete budget for 2023-24 may see a potential increase in capital spending and could introduce a more standardized tax approach. In its preview of the Indian budget, Moody's Analytics highlighted that the budget will impact both business and consumer confidence. Following the loss of its majority in the Lok Sabha in June, Prime Minister Narendra Modi's Bharatiya Janata Party aims to foster confidence and public trust in the new coalition government it currently heads, as stated by Aditi Raman, Associate Economist at Moody's Analytics.
JULY 23, 2024 / 09:31 AM IST
Experts suggest that the Union Budget 2024, broadcasted live, may feature a reduced fiscal deficit goal, supported by a significant dividend windfall from the RBI.
The Axis View
Axis Bank's Head of Global Research Neelkanth Mishra said that it is likely that RBI's dividend for FY26 could also be well above the Rs 1.5 lakh crore figure, but it can not be assumed to be steady state revenue. The priorities this budget are likely to be the same, and the focus will be expenditure that are fiscal multipliers like infra and railways.
JPMorgan View
A significant revenue space has been generated by last year's austere budget and the RBI transfers, JPMorgan's head of EM economics, Jahangir Aziz told CNBC-TV18, adding that Centre may choose to bring down the fiscal deficit target for the year to 5.1 percent of GDP. Given the RBI's dividend transfer, this fiscal tightening will not be a drag on the economy.
JULY 23, 2024 / 09:21 AM IST
Live Updates on Budget 2024: Finance Minister is seen holding the 'Bahi Khaata' before delivering her 7th Budget speech
Today in Parliament, Finance Minister Nirmala Sitharaman will present the first budget of the Modi 3.0 government. Accompanied by other Finance Ministry officials such as CEA Anantha Nageswaran and MoS Finance Pankaj Chaudhary, the Finance Minister is ready with the 'Bahi Khaata' for the budget presentation.
Live Coverage of Union Budget 2024: Finance Minister Nirmala Sitharaman is currently presenting the first Union Budget of the Modi 3.0 government, marking her 7th consecutive budget announcement on July 23 during the Monsoon Session of Parliament. The Interim Budget presented on February 1 did not introduce any significant policy changes or new benefits for the middle class.
For the complete Budget, Sitharaman is tasked with the challenge of boosting economic growth, managing inflation, and sticking to the fiscal consolidation path. The upcoming Budget is anticipated to focus on supporting the productive sectors of the economy by striking a delicate balance between promoting investments and consumption. Additionally, the Finance Minister must address the requirements of key allies such as N Chandrababu Naidu's Telugu Desam Party (TDP) and Nitish Kumar's Janata Dal (United), whose backing was essential for the BJP to secure its third consecutive term despite not attaining a majority in the recent Lok Sabha elections.
In terms of economic strategies, Sitharaman will need to outline plans to realize India's objective of becoming a $5 trillion economy and the world's third-largest economy, a commitment made by Prime Minister Narendra Modi prior to the elections. The Budget must also cater to the needs of the agricultural sector, create job opportunities, manage public expenditure, and enhance tax revenues.
The salaried class is eagerly awaiting potential tax relief, which could materialize through reductions in personal tax rates or an increase in tax exemption thresholds, particularly under the new tax structure introduced in 2020.
The new administration benefits from a solid economic groundwork and a significant dividend of Rs 2.11 lakh crore from the Reserve Bank of India (RBI) for FY24. This substantial dividend will aid in expediting fiscal consolidation, reducing the debt-to-GDP ratio, and decreasing market borrowing, paving the way for sustained economic stability and progress.
Live Coverage of Union Budget 2024: Finance Minister Nirmala Sitharaman is currently delivering the inaugural Union Budget of the Modi 3.0 administration, marking her seventh consecutive budget presentation on July 23 in the midst of the Monsoon Session of Parliament. The Interim Budget presented on February 1 did not introduce significant policy changes or new advantages for the middle class.
Union Budget 2024 Live: MoS Pankaj Chaudhary states that the budget is formulated in alignment with PM Modi's 'Sabka Saath Sabka Vikas' vision.
Pankaj Chaudhary, the Minister of State for Finance, stated that the upcoming Union Budget of the third Modi government will be guided by the principle of "Sabka Saath Sabka Vikas".
Chaudhary was one of the first members of FM Nirmala Sitharaman's team to arrive at the North Block offices of the Finance Ministry before the Budget Presentation.
Additionally, Vivek Joshi, Secretary of the Department of Financial Services, and Chief Economic Advisor V. Anantha Nageswaran have also reported to the ministry.
Live coverage of Union Budget 2024: First major policy announcement of Modi 3.0 administration.
Analysts anticipate that the Union Budget, as the primary policy announcement of Modi 3.0, will prioritize job creation and enhancing consumption, potentially benefiting sectors like consumer goods, real estate, and automobiles.
Source: All the Updates are from Money Control . Com Website
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