Thursday, June 13, 2024

FinMin firms up tax proposals, expenditure plans for Budget 2024-25 amid polls

NEW DELHI, MAY 22: Finance Ministry officials in the North Block have started an internal exercise to firm up the tax proposals and expenditure plans for full Budget 2024-25, amid the poll din.
With the Lok Sabha results on June 4, the budget is likely to be presented before July 15.
In 2019, the budget was presented on July 5, a month and 5 days after Narendra Modi was sworn in on May 30.
Given the limited time, only about a month will be available for consultations with industry and other stakeholders before the Budget is presented in Parliament.
While any major policy changes or announcements would be factored in only after the new government comes to power, officials said work had begun on several other aspects of the budget.
Industry officials said they had shared certain tax proposals that are being considered by the Finance Ministry. “We are expecting consultation once the new government takes over and the budget exercise is in full swing”, a senior industry executive said.
Thrust on infrastructure and capital expenditure is expected to continue in the budget for 2024-25.
Officials said the expenditure size of ?47.65 trillion presented in the interim budget in February may see some changes depending on the Government in power but key ratios such as the fiscal deficit are unlikely to vary.
The Government may top up the 50-year interest-free capex loans to States by 15% to ?1.5 trillion in 2024-25 from ?1.3 trillion provided in the interim budget because of the increased demand for the liberal loan facility.
On February 1, Sitharaman presented the interim budget, adhering to the fiscal consolidation glide path.
(Courtesy: TT)