Union Budget 2024 - Live Updates & News

Union Budget 2024 Live Updates: 

Budget speech ends!

Union Budget 2024 Live Updates: 

1. Modest Increase for Defense Spending:
The government allocated Rs 4.56 lakh crore for defense spending. This represents a slight increase compared to the previous year's allocation of Rs 4.55 lakh crore.

2. Relief for Mutual Fund Investors:
The 20% Tax Deducted at Source (TDS) on repurchases by Mutual Funds (MFs) or Unit Trust of India (UTI) has been scrapped. This eliminates a potential tax burden for investors when their mutual fund schemes are repurchased.
 

In new tax regime, tax rate structure to be revised

No Change for Low Earners: Those earning up to Rs 3 lakh will continue to pay zero tax.
Lower Rates for Middle Income: Individuals in the Rs 3-7 lakh bracket will see a potential tax benefit with a reduced rate of 5%. 7-10L will be 10%, 10-12L will be 15%, 12-15L will be 20% and 15 & above will be 30%.

What this means:  If you opt for the new tax regime, these changes could potentially lower your tax burden depending on your income slab. 
 

Tax Relief!

The Finance Minister has proposed an increase in the standard deduction in new regime:

The standard deduction, which reduces your taxable income, will go up from Rs 50,000 to Rs 75,000.

Budget 2024 LIVE Updates:

The Finance Minister announced an increase in the Securities Transaction Tax (STT) on Futures and Options. The STT on futures will rise from 0.0125% to 0.02%, while the STT on options will increase from 0.0625% to 0.10%.

Govt announces that angel tax to abolished

Changes to Long-Term Capital Gains Tax and Short-Term Capital Gains

The Finance Minister announced a new tax structure for long-term capital gains (LTCG). Here's the breakdown:

New Tax Rate: A flat rate of 12.5% will apply to LTCG on all types of assets, both financial and non-financial. This replaces the current system with different rates for different asset classes.
Exemption Limit Revised: The limit on capital gains exempt from tax will Rs 1.25 lakh per year. 

STCG tax rate changed to 20% from 15%.

Lower Duties on Precious Metals

Good news for gold, silver, and platinum lovers! The government is reducing customs duties on these precious metals. Import duties on gold and silver will fall to 6%, while platinum duties will be lowered to 6.4%. This should make them slightly more affordable for consumers.

Boost for Local Telecom Manufacturing:

The government is aiming to encourage domestic manufacturing of telecom equipment. They've proposed raising import duties on specific telecom equipment's printed circuit boards (PCBA) by 10-15%. This will likely make it more cost-effective to manufacture these components in India.

Early Bird Savings with NPS Vatsalya:

The Finance Minister announced the "NPS Vatsalya" program. This allows you to open a National Pension Scheme (NPS) account and invest on behalf of your minor child. The funds can then be transferred to the child when they reach adulthood, giving them a head start on their retirement savings.
 

Simplifying GST for Everyone:

 GST has significantly reduced tax incidents for the common man and eased compliance for industry, marking a success of vast proportions. To further enhance the benefits of GST, we will strive to rationalize the tax structure.

Cheaper Phones and Chargers!

Good news for mobile users! The government has recognized the maturity of the Indian mobile industry and is slashing import duties on mobile phones, mobile PCBA (printed circuit boards used in phones), and mobile chargers to 15%. This should lead to more affordable phones and accessories.

Economic Growth on the Horizon

The Finance Minister announced the creation of an economic policy framework for "next-generation reforms" aimed at accelerating India's economic growth.  This framework likely outlines specific initiatives to boost the economy.

Boosting Spiritual Tourism:

The government is taking steps to promote spiritual tourism in India. Following the successful development of the Kashi Vishwanath Temple corridor, similar projects are planned for the Vishnupad Temple and Mahabodhi Temple.  Additionally, they will support the development of Nalanda University in Bihar as a major tourist destination.

FDI Made Easier

Great news for foreign investors! The government plans to simplify the rules and approval process for Foreign Direct Investments (FDI). This will make it easier for overseas companies to invest in India. Additionally, there will be a push to encourage using the Indian Rupee for these investments.

Budget 2024 LIVE Updates: 

Fiscal deficit estimated at 4.9% of GDP

Boost for Private Research & Innovation:

Remember the Rs 1 lakh crore pool announced in February to encourage private sector research?  The Finance Minister confirmed a mechanism will be established to make this a reality, giving a significant push to private-driven innovation at a commercial scale.

Space Sector Set for Takeoff!

The government has ambitious plans to grow India's space economy by five times in the next decade! To achieve this, a dedicated venture capital fund of Rs 1,000 crore will be established.  This fund will likely invest in promising space startups and ventures.

Addressing Bihar's Floods:

The Finance Minister recognized Bihar's ongoing battle with floods. She highlighted stalled plans for flood control structures in Nepal, a contributing factor. To tackle this issue, the government will provide financial support estimated at ₹11,500 crore.

Small Nuclear Reactors Get a Boost:

The government is prioritizing the development of small and modular nuclear reactors (SMRs) through a partnership with the private sector. This initiative will focus on:

Setting up "Bharat Small Reactors" (presumably India-made SMRs).
Research and development (R&D) of SMR technology.
Exploring newer technologies for cleaner nuclear energy.

Energy security and PM Surya Ghar Muft Bijli Yojana: 

•    FM highlighted the focus on energy security, announcing that a policy document on energy transition pathways will be released, emphasizing employment and sustainability. The PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar plants, providing free electricity up to 300 units per month to 1 crore households. The initiative has already seen 1.28 crore registrations and 14 lakh applications, which is a remarkable achievement.

Budget 2024 LIVE Updates: 

•    Govt encourages states charging high stamp duty: The states charging high stamp duty will be encouraged to moderate their rates for all.Additionally, further reductions in duties for properties purchased by women will be considered. These measures will also be incorporated as essential components of urban development schemes.
•    Govt retains the capex target: The government will endeavor to maintain strong fiscal support for infrastructure. This year, Rs 11.11 lakh crore has been allocated for capital expenditure, which amounts to 3.4% of India's GDP.
•    Govt's push on urban housing: Under PM Awas Yojana, Urban 2.0, the housing needs of the urban poor and middle class will be addressed with an investment of Rs 10 lakh crore.

Union Budget 2024-25 Live Update

•    Govt announces Rs 2.2 lakh crore push to make housing more affordable
•    100 branches of India Post Payments Bank to be set up in North East, says FM Sitharaman
•    Integrated tech platform will be set up to improve outcomes under the Insolvency and Bankruptcy Code (IBC).
•    A critical mineral will be mission set up for the recycling of critical minerals and their overseas acquisitions. She added that the government will launch the auction of the first tranche of Offshore blocks for mining, building on the exploration already carried out.
•    12 industrial parks will be sanctioned
•    Budget provides Rs 2.66 lakh crore for rural development
•    Govt enhances limit of MUDRA loans to Rs 20 lakh from the current Rs 10 lakh for those who have availed and successfully repaid loans under the TARUN category.
•    Sitharaman provides Rs 26,000-cr boost to road connectivity projects
•    FM on On credit guarantee schemes for MSMEs in mfg: On credit guarantee schemes for MSMEs in manufacturing, FM said, "to facilitate term loans for MSMEs for the purchase of machinery and equipment without collateral and guarantee, a new scheme will be introduced. 
•    Bihar makes a swing in Budget: Union Budget 2024 Live Updates: The Prime Minister stated that the request from the Bihar government for external assistance from multilateral development banks will be expedited.
 

We need to focus on poor, women, youth and farmers:

As mentioned in interim-budget, we need to focus on poor, women, youth and farmers,FM Sitharaman said today.
India’s economic growth continues to be shining exception: PMGKAY was extended for five years benefitting more than 80 crore people.

Power stocks

•    In order to reach the goal of 500GW of RE capacity by 2030, capacity additions in the areas of solar, wind, hydro, nuclear, and other renewable energy sources will continue to be a major focus of the budget. According to Prabhudas, the government has sanctioned viability gap finance of Rs 7,500 crore for 1GW of offshore wind generating capacity. NTPC, Power Grid, Coal India, Tata Power, and CESC are the power stocks to monitor.
•    Five schemes to focus on 4.1 crore youth over 5 years with a central outlay of Rs 2 trillion, says FM
 

FM Sitharaman announces 3 schemes for employment linked incentives

•    First timers (one month wage to new entrants in all formal sectors.)
•    Job creation in manufacturing (incentive to employees and employers wrt EPFO guidelines)
•    Support to employees (additional employment in all sectors, scheme to incentive additional employment of 50 lakh people)
 

Roadmap to pursue nine priorities for generating opportunities for India

FM lists out detailed roadmap to pursue nine priorities for generating opportunities for India. These are Agri, Employment, Inclusive development, Mfg and Services, Urban Devp, Energy, Infra, Innovation, R&D, and NexGen reforms.
 

Govt's big push on employment-linked skilling

•    Employment-linked skilling through schemes as part of the PM's package.
•    Government announces financial support for loans up to Rs 10 lakh for higher education

Job creation in the manufacturing sector

Union Budget 2024 Live Updates: The Finance Minister said that job creation in the manufacturing sector will be incentivized through a scheme linked to the employment of first-time employees.

Budget 2024 LIVE Updates: Job creation in the manufacturing sector

The Finance Minister said that job creation in the manufacturing sector will be incentivized through a scheme linked to the employment of first-time employees. 

Budget 2024 LIVE Updates: FinMin highlights significant risks to economic growth

The global economy, though exceeding expectations, faces uncertainties in policy. There are notable risks that could lower growth and increase inflation.

Budget 2024 LIVE Updates:

FM Nirmala Sitharaman reaches parliament to present her 7th straight Budget at 11:00 am.

FM Heads to Rashrapati Bhavan

Finance Minister Nirmala Sitaraman heads to Rashtrapati Bhavan to call on President Droupadi Murmu, few hours before she is slated to present the highly anticipated Union Budget speech at 11 AM IST

Sensex Opens in Green 

Sensex opens in green on the day of the Union Budget 2024 presentation

FinMin Nirmala Sitharaman Presents Economic Survey 2023-24

Finance Minister while presenting the Economic Survey in Parliament highlighted that the central government has made significant efforts to improve the Ease of Doing Business. Key changes include decriminalizing 63 offenses which allows companies to operate with less worry about compliance issues. Additionally, a central processing system has been established to streamline procedures.
 

India's Space Progress Likely to Receive Increased Funding

The allocation for the space sector is expected to see a boost, with a slight increase of 4% from ₹12,545 crore to ₹13,043 crore in the Interim Union Budget for 2024-25. As India's ambitions in space continue to grow, the number of startups in this field has skyrocketed from just 1 in 2014 to an impressive 189 by 2023.
 

Aviation Sector Seeks Bigger Budget Due to Rising Air Travelers

Although the Interim Budget saw a reduction in funds for the Ministry of Civil Aviation, the sector anticipates a higher allocation in the upcoming Budget. The budget for the Directorate General of Civil Aviation (DGCA) and the Bureau of Civil Aviation Security (BCAS) was also cut in the Interim Budget. In the new Budget, the sector is hoping for tax reductions or a temporary relief package to support airlines in their recovery.
 

MSMEs Seek More Export and Marketing Support in Budget

MSME sector is seeking support in the upcoming Budget to enhance export capabilities and promote and market their products globally. Industry groups are also advocating for government initiatives to boost the international presence of local products similar to the US Commercial Service's approach. Another key request is the requirement for GST registration for all businesses to establish a digital presence.
 

Expected Emphasis on Infrastructure Investment and Enhancing Railway Safety

Even though the central government has set aside ₹2.5 trillion for capital spending on Indian Railways in the Interim Budget 2024, recent train accidents have raised serious concerns about passenger safety. With increasing calls for greater accountability, there is a possibility that the government might boost funding for routine track, signal and train maintenance. Additionally, there could be updates on the three major economic railway corridor projects focused on energy, minerals and cement that are expected to be rolled out soon.
 

Government's ongoing focus on infrastructure investment is expected

Union Budget is likely to keep focusing on capital expenditure following the trend of recent years. Finance Minister in her interim budget speech set a higher target for the Centre’s capital expenditure for FY25 aiming for ₹11.1 trillion an increase of 16.9 percent compared to the revised figures for FY24. With private capital expenditure not meeting expectations, capital expenditure has become a key driver of economic growth.
 

What is the Economic Survey?

Economic Survey prepared by Economic Division of Department of Economic Affairs under Ministry of Finance and guided by the chief economic adviser delivers an in depth review of the economy's performance for the fiscal year 2023-24 (April-March). It also provides forecasts for the current year and gives early indications of the main themes and focus areas likely to be featured in the upcoming 2024-25 Budget  which is scheduled for presentation on Tuesday.
 

Economic Survey to be presented on 22 July

Finance Minister is set to present the pre budget document in Parliament today, 22 July just one day before the Budget presentation on 23 July.
 

India's Opportunity in the Lithium-Ion Battery Market

The global market for lithium ion batteries which are crucial for electric vehicles and renewable energy storage is expected to reach $100 billion by 2025. This presents a huge opportunity for India to lead in clean technology, boost job creation and drive economic growth. By focusing on recycling these batteries India can address shortages of key materials, generate employment, and become a leader in sustainable practices. Anupam Kumar, CEO of MiniMines believes that the upcoming budget could be a key moment in transforming India's clean tech sector and advancing its commitment to sustainability. MiniMines is prepared to offer its expertise and innovative technologies to support this effort, helping India move towards a greener and more resource efficient future.
 

What Real Estate Sector Is Seeking

Ashok Chhajer, the Chairman and Managing Director of Arihant Superstructures Ltd has pointed out that the real estate industry is facing challenges due to multiple layers of GST taxation. He believes this system should be simplified so that GST is only applied once per transaction. Chhajer also suggests that the government should set up a team to monitor construction costs to prevent future increases. Additionally, he is calling for a reduction in the GST rate on cement from 28% to 18% arguing that cement is not a luxury item and that this change would help stabilize and support the growth of the real estate sector.
 

What Education Sector Is Seeking

Muddassar Nazar, CEO of Birla Brainiacs shared his expectations for the 2024 budget focusing on improving digital education. He hopes the budget will support better internet access in rural areas and offer subsidies for digital devices to ensure all students can participate in online learning. Nazar also wants the budget to fund new educational programs, like homeschooling options and skill based courses. Additionally, he emphasizes the need for a financial literacy program to help students learn about money management.
 

Gov't Should Focus on Ongoing Capital Investment in Transportation, says Asia Shipping India CEO

Amit Tandon, CEO and Managing Director of Asia Shipping India believes that the government should focus on improving and investing in transportation, port facilities and digital infrastructure. According to him these investments are crucial for making logistics more efficient and competitive. This approach aligns with the goals set in the National Logistics Policy which aims to enhance the overall logistics sector in the country.
 

India Aiming to Become a Top Semiconductor Hub

Eswara Rao Nandam, CEO and Founder of Polymatech Electronics highlighted that the Indian government is dedicated to making the country a major player in the semiconductor industry. However, to achieve lasting success and compete globally several things need to be done. First, there must be investment in building the necessary infrastructure. This includes ensuring a reliable electricity supply, having sufficient water resources, developing efficient transportation systems and creating a skilled workforce. These elements are crucial for the growth and competitiveness of India's semiconductor sector.
 

Support for MSMEs

Ratan Singh Sehgal, Managing Director of Hybon Elevators and Escalators Pvt. Ltd highlighted that to upgrade public spaces and urban areas we need big investments in infrastructure. This will help fix major problems and boost the demand for technology in key industries. Small and medium sized businesses (MSMEs) also need more support. The government currently offers financial help, subsidies and support for technology improvements to these businesses. This aid helps MSMEs become more productive, reach more customers and drive innovation. By developing MSME sector we can strengthen supply chains that many industries rely on such as manufacturing and infrastructure which in turn boosts economic activity.
 

Travel Sector Calls for Tax Breaks and Incentives in Union Budget 2024

Travel and tourism industry is hoping that the upcoming Union Budget will help them by giving special status to their infrastructure, making tax rules simpler, changing how Leave Travel Allowance (LTA) works, and offering incentives to promote local travel. Amit Jain from Magicfares highlights that more travel tax breaks and cheaper hotel stays are needed to encourage people to spend more and help the industry grow.
 

FMCG Seeks Tax Support for Healthy Products

Jyoti Bharadwaj, the founder of TeaFit, points out some issues with the current GST tax system for beverages. She notes that fruit based drinks are taxed at 12% GST but this can be problematic because some of these drinks might be high in sugar. On the other hand carbonated drinks are heavily taxed at 40% (28% GST and 12% Cess) regardless of their health impact. Bharadwaj believes this tax structure hurts profits making it harder for companies to innovate healthy drinks. She argues that changing the tax system to focus on the nutritional value of drinks rather than broad categories would help companies create healthier options and support public health.
 

Middle Class Taxpayers Seek Relief in Union Budget 2024

Middle class taxpayers are hoping for some good news in the full year Budget on July 23 after not getting any tax benefits in the interim Budget 2024. They want:

1. The basic exemption limit raised to ₹5 lakh.
2. A new tax slab for incomes between ₹15-20 lakh.
3. The option to deduct house rent allowance (HRA) or home loan interest in the new tax regime.

Financial experts think there might be some changes but mainly within the new tax regime that has fewer exemptions.
 

Auto Industry Seeks Rural Income Boost in 2024 Budget

Auto industry is optimistic that the upcoming Budget will focus on increasing rural income which could lead to more demand for two wheelers. A normal monsoon is expected which is good news for rural areas. The industry also wants specific incentives like a new version of the FAME program to make electric two wheelers cheaper and encourage more people to buy them.
 

Logistics Industry Anticipates Major Reforms in Budget 2024

Logistics industry is hopeful that the Union Budget 2024-25 will make it easier to run businesses, offer incentives for eco-friendly initiatives, and simplify regulations. Leaders like R S Subramanian from DHL Express and Rizwan Soomar from DP World stress the importance of digital processes, uniform GST administration, and prioritizing infrastructure development.
 

Prioritize Inflation and Growth in Union Budget says Yashwant Sinha

Former finance minister Yashwant Sinha said that the Union Budget should focus on controlling rising prices and boosting the economy. He emphasized that achieving an 8% GDP growth rate is crucial for eliminating poverty.
 

Ensuring Digital Security for Indians is Essential says FCRF Co founder

Shashank Shekhar, co founder of the Future Crime Research Foundation which was incubated at IIT Kanpur's Artificial Intelligence and Innovation Driven Entrepreneurship Centre of Excellence emphasized the importance of investing in cybersecurity. He compared it to insurance, saying it's essential for protecting digital economies. He also urged the government to support the development of strong Indian cybersecurity companies to help achieve the goal of a developed India by 2047, especially as the government works to digitally empower its citizens.
 

Cybersecurity firms seek digital security boost under Viksit Bharat

In India, as artificial intelligence gains momentum, cybersecurity experts are hopeful that the upcoming Union Budget will prioritize enhancing digital safety. Tarun Wig, CEO of Innefu Labs, emphasized that AI and machine learning can play a crucial role in detecting and preventing new types of cyber attacks. He stressed the need for government support to train and keep top cybersecurity talent and to help businesses invest in AI for cybersecurity purposes. This support is seen as essential for boosting India's defenses against digital threats.
 

Incentives for Renewable Energy and Support for Hydropower

Power sector, especially renewable energy, has specific hopes for the upcoming Budget. The industry want more support for hydropower like creating a special agency just for hydropower projects and giving benefits to pumped storage hydropower plants. The industry also wants the government to continue letting renewable energy projects get tax breaks on interstate transmission charges past June 2025.
 

Infrastructure Stocks to Monitor Amid Government's Development Focus

Investors are hopeful that the government will allocate more funds to infrastructure projects due to better fiscal conditions. Because of this expectation, stocks of companies like Larsen & Toubro, KEC International and RITES, which are involved in infrastructure are getting a lot of attention before Budget 2024.
 

New Medical Device Manufacturing Scheme Expected in Union Budget 2024

Upcoming Union Budget might introduce a new scheme to help Indian companies make medical devices here instead of importing them. This plan is like what's already in place for drug makers. The goal is to make us more independent in healthcare gear and bring down costs. Details on how much money will go into this are still being figured out, but talks about adding it to the 2024-25 Budget are happening now.
 

Expectations for the Affordable Housing Market in the Union Budget 2024

Over the past five years, the affordable housing market has gotten smaller, according to Anarock. However, investors are showing more interest in affordable housing finance companies (AFHCs) because they expect growth in this area. Analysts think that the upcoming Union Budget will introduce important measures to boost the affordable housing market. Flagship schemes have played a crucial role in enabling AFHCs to manage the increasing demand for affordable housing. Despite serving a vulnerable population, AFHCs have maintained excellent asset quality.
 

Expert Calls for Policy Bridges and VGF Scheme to Support Clean Energy Sector

Girishkumar Kadam from ICRA Ltd. mentioned that pumped storage projects (PSP) in India are progressing slowly. These projects are crucial for India's shift towards cleaner energy. To speed up their implementation he suggests introducing policy measures like a VGF scheme similar to what's available for battery storage products. He also highlighted the need to finalize and expedite the Production Linked Incentive (PLI) Scheme framework which could further support these projects. These steps are essential for developing these important energy assets more quickly.
 

Experts anticipate these measures will encourage investment in clean energy

The budget for the fiscal year 2024-25 is expected to unveil various new initiatives aimed at increasing investments in renewable energy. Experts predict a strong emphasis on promoting green growth. This could include incentives and policies aimed at encouraging investments in renewable energy projects especially in areas like battery storage and strengthening the transmission and distribution networks. The goal is to advance sustainability and expand renewable energy infrastructure across the country.
 

High Hopes for Boost in Standard Tax Deduction

Standard deduction for taxpayers is currently ₹50,000 which was introduced in 2018 and increased in 2019 and doesn't require any investment proof. There is a proposal to increase this deduction to ₹1 lakh to adjust for inflation. If the government agrees it would provide tax relief especially for people with fixed incomes like pensioners. This change would increase disposable income particularly for lower and middle income earners, and is eagerly awaited in the upcoming Union Budget 2024.
 

Indian Chamber of Commerce Urges Customs Duty Reform to Boost Manufacturing

Indian Chamber of Commerce (ICC) has asked the government to adjust customs duties for industries like steel, solar batteries, aluminum and lithium cells. They believe this will help boost domestic manufacturing. ICC President Ameya Prabhu stressed the importance of protecting local industries and fixing the current duty structures that make imported goods cheaper than domestic products. This change aims to reduce reliance on imports and promote self sufficiency.
 

Union Budget 2024 to be presented on 23 July, 2024.

Stay Tuned for Live Union Budget 2024 Updates!