Union Budget 2024 Expectations: Middle Class Wants Exemptions, Tax Cuts – News18

Budget 2024 Expectation Live: Healthcare Regulatory Reforms

Rakesh Kumar, founder, Square Insurance, said, “Increasing the tax exemption limit on health insurance premiums to Rs 75,000 would make healthcare more accessible.” 

He also suggests, “Introducing subsidies or tax credits for comprehensive electric vehicle (EV) insurance will promote EV adoption.”

Kumar advocates for home insurance by stating, “Offering tax deductions for home insurance premiums under Section 80C will encourage homeowners to protect their assets.”

To enhance cybersecurity, he notes, “Tax incentives for cyber insurance, particularly for SMEs, are essential.” 

He emphasises the need to broaden healthcare access, saying, “Expanding the Ayushman Bharat scheme to include the middle class would significantly increase healthcare coverage.” 

For comprehensive coverage, Kumar adds, “Extending deductions to other personal insurances will promote comprehensive coverage.”

He also highlights the microfinance sector, stating, “Introducing parametric covers and mandatory coverage for shops and establishments will enhance resilience for vulnerable groups.” 

On regulatory reforms, Kumar insists, “Healthcare regulatory reforms, including creating an autonomous regulatory body, establishing a health claims exchange, and streamlining cashless authorizations, are needed to improve oversight and service quality.”

For retirement savings, he suggests, “Simplifying or eliminating taxes on pension and annuity products and extending NPS tax exemptions will encourage retirement savings.” 

Lastly, he proposes, “Comprehensive tax reforms for life insurance, such as allowing complete deductions for premiums, lowering GST on term life insurance, and implementing zero-rating for specific policies, will make life insurance more affordable.”

Budget 2024 Expectation Live: Budgetary Allocation For Climate Action Projects

Ankit Mathur, Co-founder, Greenway Grameen, said, “We look forward to specific budgetary allocation for climate action projects. Given the serious effects of climate change, experienced in the form of the recent heat wave, it would be prudent to invest in nature-based, community-driven projects. The government’s excellent work on infrastructure development should be complemented with sincere efforts in climate mitigation and adaptation to build resilience in India’s growth story.”

Budget 2024 Expectation: Agricultural Sector Expectations

Raju Kapoor, Director, Industry & Public Affairs, FMC India, “The agricultural sector which is the backbone of the Indian economy has been through a challenging year. With monsoon playing truant, agricultural growth has diminished from 4.7% last year to 1.4%, which further added to the rural distress. This budget presents a crucial opportunity to address these concerns and propel the sector towards a brighter future. The government must prioritize agriculture and rural India, focusing on making farmers more resilient while simultaneously mitigating food inflation that disproportionately affects society’s underprivileged segments.

Firstly, the budget must acknowledge the stark reality of food inflation, aggravated by stock restrictions on essential commodities such as pulses, wheat, and rice. This disproportionately affects the most vulnerable sections of society, demanding immediate attention. Similarly, the import dependence on pulses and oilseeds, the government’s commitment to providing free rations under the Annapurna Yojana, and climate change further necessitate a robust domestic production system supported by developing an innovation ecosystem.

The government should prioritize R&D investments aligned with national priorities, focusing on developing climate-resilient crop varieties, microbial products, and sustainable farming practices. To facilitate the widespread adoption of technology, the budget should also incentivize the private sector participation in building a robust agricultural innovation ecosystem. Tax incentives for R&D investments by the private sector can encourage the development and integration of cutting-edge technologies. Furthermore, GST on agricultural inputs, such as agrochemicals, should be brought under the GST Council’s purview and potentially lowered to 12% maximum to ease the financial burden on farmers.

The Kisan Samridhi Yojana should be strengthened to empower farmers with greater financial support and its utilization at farmers’ hands should be linked to the use of advanced agricultural inputs. Kisan Samruddhi coupons that could be used to purchase agricultural inputs would enhance productivity. This will ensure timely access to essential resources and subsequent financial support to the farmers. We expect that the budget should have adequate resources for capacity-building initiatives, and should incentivize the investments by private companies to train farmer groups, particularly women, creating awareness and adoption of modern growing practices. Easy access to adequate and affordable credit will further empower farmers to be able to adopt these technologies and enhance their livelihoods.

Extending the PLI scheme for production and export of latest innovation crop protection chemicals in India will provide long term dividend to India. Similarly, aligned to the theme of making India the Global Drone Hub, expanding the PLI scheme for building the agri-drone component manufacturing ecosystem will go a long way.

In a nutshell, we envisage that this budget is focused on agriculture, which will further lay the foundation for a strong, sustainable, and prosperous future for Indian farmers and the nation.”

Budget 2024 Expectation: Credit Access To MSMEs On Budget Wishlist

Shaji Varghese, CEO of Muthoot Fincorp Limited, said: “We hope to see new initiatives for enhancing access to credit among MSMEs, especially in the rural areas in this upcoming budget. More liquidity assistance to NBFCs, and credit guarantee to MSME lending can help enhance supply of credit . We anticipate continued budget allocations towards digital initiatives and technologies. Financial inclusion is a significant enabler for Viksit Bharat 2047 and while NBFCs are focused on the same, we expect the government to take some measures to increase credit supply there by enabling the SMEs and rural business development, thus contributing to nation’s growth.”

Union Budget 2024 Expectation: Will Budget 2024 Have Incentives For The Banking Sector

Ramki Gaddipati, CEO APAC and Global CTO, Zeta, said, “India already boasts of some of the most impressive Digital Public Infrastructure (DPI) and payment rails today including ground-breaking new protocols such as Credit Line on UPI. As a provider of next-generation banking solutions to large financial institutions, we hope that the Union Budget 24-25 will introduce further imperatives and incentives for banks and the associated technology ecosystem to create even more financial inclusion for the underserved Indians.”

Budget 2024 Expectations Live Updates: ‘Prioritize Growth Of Digital Payments’

Suresh Rajagopalan, CEO- Wibmo, a PayU company, said, “As we approach the upcoming budget, it is crucial to prioritize the growth of digital payments through enhanced security measures and the establishment of a fraud data consortium. With the rapid expansion of digital payments, substantial resources must be allocated to fortify security infrastructure, ensuring that consumers and businesses can engage in transactions with confidence. The creation of a fraud data consortium would enable financial institutions and payment service providers to share information about fraudulent activities, fostering a collaborative effort to combat fraud.”

Budget 2024 Expectation: Renewable Energy Sector Wishlist

“With climate change as a key global concern, we believe the green energy charter will be on priority in the upcoming union budget 2024 as India currently at 150 GW has set an ambitious target of achieving a renewable energy capacity of 500 GW by 2030. Further, with a focus on ‘Make in India’, and improving ease of doing business, India has become one of the preferred destinations for global companies and is on the road to becoming the third third-largest economy in the world with a GDP of $5 trillion making green energy a top focus to achieve its Net Zero goals. PM Narendra Modi’s recent address in Russia underlined India’s commitment to renewable energy. In fact, the Government’s focus has been clear with the recent progressive policy and regulatory reforms such as ALMM, PLI scheme, PM Surya Ghar, PM Suryoday Yojana and more.

To further shape the renewable energy sector, the government must focus on large-scale investments in domestic solar panel and component manufacturing facilities. This will not only shorten supply chains and reduce dependency on imports, but also create a cost-competitive advantage. Introducing new skill development programs, incentives, funding, import duties, subsidies, and crafting favourable policies that can boost R&D and innovation will further bolster the sector. We also recommend allocating the unutilized PLI funds towards smaller companies that meet specified criteria to support their entry into module and component manufacturing. This strategic distribution is crucial for boosting the capabilities of MSMEs in the renewable energy sector. Apart from this, budgetary allocations should address the growing need for support towards energy storage projects,” Capt Ishver Dholakiya, Founder and MD, Goldi Solar.

Budget 2024 Expectation: New scheme for domestic medical device manufacturing likely in Union Budget 2024

The Union Budget is expected to introduce a scheme aimed at boosting the domestic manufacturing of medical devices, similar to existing initiatives for drugmakers, as reported by Mint. This move is intended to promote self-reliance in medical equipment and reduce healthcare costs. Although the specifics of financial support are yet to be finalized, discussions about including this initiative in the 2024-25 Budget are ongoing.

Budget 2024 Expectations Live Updates: ‘Treating Crypto At Par With Other Financial Assets’

Amjad Raza Khan, CEO, Cashaa, said, “Rationalisation of capital gains tax down from the current 30% and of the TDS tax rate of 1%. Treating crypto at par with other financial asset classes like equity. A well-defined regulatory framework for crypto in the country, making crypto a suitable investment option for the common man as well as spurring industry investment in the crypto sector.”

Budget 2024 Expectations Live Updates: Rationalise Customs Duties In Various Sectors

The Indian Chamber of Commerce (ICC) has suggested the government to rationalise customs duties in various sectors including steel, solar battery, aluminum, and lithium cells in a bid to boost domestic manufacturing.

ICC President Ameya Prabhu said protective measures are needed for the growth of domestic industry in sectors including steel, solar battery, aluminum, and lithium cells.

Budget 2024: Will Modi govt offer capital gains tax relief to investors?

With the NDA government working on its first full Budget of the third term, investors hope for relief on capital gains taxes. Experts suggest standardizing holding periods and rates, and changing the base year for indexation to benefit investors. Simplifying the tax structure could encourage higher compliance.

Budget 2024 Expectation: Modi govt to stick to February budget goals despite election rebuke, says Reuters poll

PM Narendra Modi-led BJP govt plans to keep its budget goals the same despite losing its majority in the recent Lok Sabha election. According to a Reuters poll, the Union Budget 2024 on July 23 will focus on economic growth through infrastructure spending, aiming to tackle unemployment. Most experts think the final budget will stick to the targets set in February, with a fiscal deficit of 5.10% of GDP and borrowing of 14.13 trillion rupees. The government will use a large payment from the Reserve Bank of India for extra spending, while also trying to manage financial demands from political allies and maintain fiscal discipline.

Budget 2024 Expectation: Modi 3.0 Budget will showcase govt’s fiscal discipline and vision for the next 5 years

“The first budget of Modi 3.0 will be an important platform for the government to signal its intent on fiscal consolidation, showcase how it plans to manage allies’ financial demands and present its vision for the next five years.” – Says Sonal Varma, chief economist for India at Nomura

Union Budget 2024 expectations of salaried class: Will income tax slabs finally change?

Among the various expectations for the Full Budget 2024, the most eagerly awaited aspect is income tax slabs. In the interim budget, the Finance Minister Nirmala Sitharaman did not alter the tax slabs, explaining that it wasn’t the appropriate time for such revisions. Therefore, taxpayers are hopeful for some changes this time.

Budget 2024 Expectation: Will govt increase Section 80C deduction limit?

Individual taxpayers are primarily requesting a revision of income tax slab rates and an increase in Section 80C tax deduction benefits, which currently allow a Rs 1.5 lakh reduction in taxable income for specific investments and expenditures. The limit, last reviewed in 2014 by the NDA government, has not been changed since, leading to widespread anticipation of an increase this year.