Budget 2024: Will Nirmala Sitharaman Deliver Much-Needed Income Tax Relief?
New Delhi: Finance Minister Nirmala Sitharaman is set to present the Union Budget in just a week. Industry stakeholders are eagerly awaiting the Budget, hoping for policy continuity, better allocations, and key reforms. Many in India are particularly hopeful for tax relief measures and are urging the government to raise the exemption limit from Rs 3 lakh to Rs 5 lakh.
Yesterday 16th July , the traditional Halwa ceremony was held to mark the final stage of Budget preparation for Union Budget 2024. This ceremony took place in North Block, New Delhi, with Union Finance & Corporate Affairs Minister Nirmala Sitharaman and Union Minister of State for Finance Pankaj Chaudhary in attendance. Also present were finance ministry secretaries, the CBDT Chairman, the CBIC Chairman, and other officials from the finance ministry and North Block Budget Press.
The Halwa ceremony serves as a ‘send-off’ for finance ministry officials and staff involved in the preparation of the Union government’s annual financial statement. During the ‘lock-in’ period that follows, these officials stay in the basement of North Block, cut off from the outside world to maintain the secrecy of the final budget document.
Earlier this week, the finance minister held a series of pre-budget consultation meetings with industry representatives and economists. Prime Minister Narendra Modi also conducted a high-level meeting with economists to gather suggestions and expectations for the Union Budget.
Union Budget 2023 Expectation: Tax Relief for Middle Class
Sunil Nyati, Managing Director, Swastika Investmart Ltd., said: “The upcoming budget will continue to focus on economic reforms, with expectations of higher capital expenditure and infrastructure spending, all while maintaining fiscal discipline. This is facilitated by the government’s increased fiscal space, thanks to the RBI’s substantial dividend and strong GST collection numbers. The focus will remain on the green energy sector, defense, railways, housing, and manufacturing sectors. Additionally, measures targeting rural areas, such as rural infrastructure development and agricultural support, will be emphasized.”
“To boost consumption in the economy, we can expect some relief for the middle class in terms of income tax. Investment sentiment is currently very strong, and it is crucial for the government to avoid decisions, such as hiking LTCG or STT, that could disturb the market mood.”
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