The anticipation for Budget 2024 is high, with expectations of significant tax relaxations. The government is likely to introduce measures to make the tax structure more attractive, continuing efforts to reduce the burden on the salaried class as seen in recent years.
With India’s unemployment rate at 7% in May 2024, the government is focusing on curbing food inflation, tackling unemployment, and addressing agricultural challenges. Emphasis will be on job creation, revenue growth, and increased infrastructure investment to ensure economic stability.
Key sectors to watch
Railways: Continued focus on modernization, safety upgrades, network expansion, and electrification is expected. The interim budget allocated Rs 2.52 lakh crores, which is likely to increase.
Agriculture: Increased investment is expected to rejuvenate the agriculture sector, with more funds for agricultural research, infrastructure, irrigation projects, crop insurance schemes, and initiatives to boost farmers’ income and productivity.
Infrastructure: The sector received Rs 11.11 lakh crore in the interim Budget, a record amount. New infrastructure schemes and national highways construction targets are anticipated.
Defence: The interim budget allocated Rs 6.21 lakh crores to defence, a 4.72% increase from the previous year. Significant announcements for indigenous defence manufacturing are expected.
Renewable Energy: The government aims to meet half of its energy requirements through renewable sources by 2030. Further significant announcements are anticipated following the major scheme for rooftop solar energy capacity launched in the interim budget.
Other sectors likely to receive increased budgetary allocation and strategic plans include BFSI, healthcare, consumer goods, manufacturing, and tourism.
MSME sector
The MSME sector, contributing almost 30% to India’s GDP, is expected to receive special attention. Anticipated announcements include schemes to improve supply chains, enhance manufacturing capabilities, and provide concessional loans or affordable credit. In the interim budget, the MSME sector was allocated Rs 22,138 crore.
