Union Finance Minister Nirmala Sitharaman is supposed to present her eighth budget in the Parliament on February 1, 2025 and only 23 days are left for the presentation. The exact time of the speech of the FM is expected to be conveyed closer to the date. Of the 7 budgets presented so far, one was an interim budget.
As usual, the minister is holding pre-budget meetings with various stakeholders such as industry association and trade unions to know about their expectations. Let’s now have a look at the chief expectations. Every year, various stakeholder bodies hold discussions with the FM to convey their demands and what they think will work to the best interest of their group as well as for the broader economy.
Income Tax expectations from Union Budget
Like other years, there is a high expectation among middle-class taxpayers that income tax slabs will be revised for individuals earning up to Rs 15 lakh a year. While at an individual level, it will provide much-needed relief for the taxpayers, at an aggregate level, it could push consumption, which needs an urgent push. On this count, meetings with India Inc have also seen industry bodies urging the FM to consider reforms that will result in a boost in consumption. One of the time-tested steps to ensure a rise in consumption is to increase disposable income in the hands of the consumer.
On another front, National Real Estate Development Council (NAREDCO) has also strongly recommended that the FM should allow tax deduction limits on housing loan interest payments to be raised from Rs 2 lakh to Rs 5 lakh.
Allocation for healthcare, education, infrastructure
Analysts are of the opinion that FM would raise allocations for the crucial healthcare and education sectors – domains that are significant for long-term human capital development. Given the recent sluggishness in the rate of GDP growth, one could also expect a boost in capital expenditure by the government. The Centre has continuously harped on infrastructure development and allocations in roads, railways, and urban projects could receive a boost. These could have a direct positive impact on the GDP growth rate.
Coming down to a particular sector, the EV industry is hoping that it will receive policy tailwinds for its growth and these will be announced in the budget. Incentives for manufacturing can go up and EV charging stations might also be given to boost their presence and quicker rollout in the country.
Only 23 days are left for Union Finance Minister Nirmala Sitharaman to present her eighth budget in the Parliament on February 1. While the budget date is known, the exact time when it will be presented will be announced closer to the event. While the FM is busy holding pre-budget meetings with various stakeholders, what are the key expectations now. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
