Finance Minister Nirmala Sitharaman has wrapped up consultations with industry and social sector representatives ahead of presenting her seventh Union Budget on July 23, the Finance Ministry said in a statement on Sunday.
The pre-budget consultations for Union Budget 2024-25 began on June 19 and concluded on July 5, 2024, the ministry said.
This marks the first full budget of Modi 3.0, aimed at charting the course for a developed India by 2047.
President Droupadi Murmu recently hinted at significant economic decisions during her address to Parliament last month. In her first address to the joint sitting of Parliament since the constitution of the 18th Lok Sabha, the President said, “This budget will be an effective document of the government’s far-reaching policies and futuristic vision”. “Along with major economic and social decisions, many historic steps will also be seen in this budget,” she said.
During in-person consultations, over 120 invitees from 10 stakeholder groups, including experts, farmer associations, trade unions, education, health, employment, MSMEs, industry, economists, financial sectors, and infrastructure sectors, participated.
Sitharaman chaired these meetings, attended by Minister of State for Finance Pankaj Chaudhary, alongside senior officials like Finance Secretary T V Somanathan, Economic Affairs Secretary Ajay Seth, DIPAM Secretary Tuhin K Pandey, Financial Services Secretary Vivek Joshi, and Revenue Secretary Sanjay Malhotra.
During the consultations, Sitharaman thanked the participants for their valuable suggestions and assured experts and representatives that all recommendations would be thoroughly reviewed and taken into consideration in the preparation of the Union Budget 2024-25.
Consultancy firm EY recommended that the government should consider doubling the standard deduction under the new concessional tax regime to Rs 1 lakh or raising the basic exemption limit to Rs 3.5 lakh in the upcoming Budget.
Outlining key taxation reforms for the upcoming Budget, EY emphasized the importance of streamlining tax structures, enhancing policy frameworks to foster economic growth, and creating a favorable environment for investment and development.
The consultancy firm also suggested maintaining stability in corporate tax rates, rationalizing TDS provisions, and streamlining dispute resolution processes as important areas for consideration in the Budget, which will be presented next month in Parliament.
Regarding personal taxes, experts have advocated for the continuation of the concessional tax regime without exemptions or deductions. Further, proposal has been made to raise the standard deduction to Rs 1 lakh, up from the current Rs 50,000, or increasing the basic exemption limit from Rs 3 lakh to Rs 3.5 lakh.
