Budget 2024 Highlights: FM disappoints investors, rewards (some) taxpayers

Budget 2024 Live Updates: P Chidambaram, in his Budget presentation of 1997 when he was the Finance minister, reduced personal income tax and corporate tax. The Budget was labelled "Dream Budget" by experts as it introduced significant cuts in both personal and corporate taxes. In the Budget, the highest personal income tax rate was reduced from 40 per cent to 30 per cent.

Ajay Kela, president & CEO, Wadhwani Foundation, said, “We are hopeful that the upcoming budget will continue to bolster the vibrant startup ecosystem in India. By increasing funding, simplifying regulations, and fostering innovation, the government can empower entrepreneurs to drive economic growth and create millions of jobs. We anticipate new initiatives that will provide startups with the resources they need to scale and thrive in a competitive global market.”

Budget 2024 Live Updates: Goods and Services Tax (GST) collection in 2024-25 is estimated to rise to ₹10.68 lakh crore. The tax revenue figures will have to be watched out for in Nirmala Sitharaman's speech today.

Budget 2024 Live Updates: Prakash Kumar, CEO, WGDT, Wadhwani Foundation said, “This year, we hope to see further support for technologies such as AI and machine learning, which are crucial for enhancing public services and driving economic growth. Government backing will be instrumental in fostering innovation and ensuring that digital advancements benefit all sectors of society. Additionally, we anticipate initiatives that will bridge the digital divide, ensuring that the benefits of technology reach every corner of the country.”

Budget 2024 Live Updates: Government's planned capital expenditure for this fiscal year is budgeted at ₹11.1 lakh crore- higher than ₹9.5 lakh crore in the last fiscal year. Experts are going to keenly look at the capital expenditure that Nirmala Sitharaman announces as the Modi government has been pushing infrastructure creation and also incentivizing states to step up capex.

Budget 2024 Live Updates: The Union Budget of 1991 presented by Dr Manmohan Singh addressed the severe economic crisis that the country was facing at the time. At the time Manmohan Singh revamped the import-export policy of the country.

Budget 2024 Live Updates: Ajay Kela, president & CEO, Wadhwani Foundation said, “We look forward to the government's emphasis on education and skilling in the upcoming budget. By investing in skill development and modernizing the education system, we can equip the youth with the necessary tools to succeed in a rapidly changing job market. Enhanced vocational training programs and digital learning platforms will be crucial in building a future-ready workforce capable of meeting the demands of the new economy.”

Budget 2024 Live Updates: Fiscal deficit is the difference between government expenditure and income. For the current fiscal, the fiscal deficit is 5.1 per cent as projected in the Interim Budget in February. Nirmala Sitharaman is expected to provide better-than-earlier projection in her Budget speech today.

Budget 2024 Live Updates: Here are the various slabs under the old tax regime:

Up to 2.5 lakh: Exempted

More than 2.5 lakh up to 3 lakh: 5%

More than 3 lakh up to 5 lakh: 5%

More than 5 lakh to 6 lakh: 20%

More than 6 lakh to 9 lakh: 20%

More than 9 lakh to 10 lakh: 20%

More than 10 lakh to 12 lakh: 30%

More than 12 lakh up to 15 lakh: 30%

Above 15 lakh: 30%

Budget 2024 Live Updates: Chander Shekhar Sibal, Sr. Vice President & HOD, Healthcare Business, FUJIFILM India, said, “A key area of focus should be providing tax benefits for research and development in healthcare is crucial. It would incentivize innovation and foster the development of cutting-edge diagnostic and therapeutic solutions. Public-private partnerships can further enhance this ecosystem by combining resources and expertise from both sectors, leading to improved healthcare delivery and infrastructure.”

Budget 2024 Live Updates: TT Krishnamachari's Budget 1957-58 introduced tax reforms, including wealth tax which was levied on the total value of personal assets. This marked a major shift in India's tax policy. Wealth tax was abolished in 2015.

Budget 2024 Live Updates: Indian Railways was allocated ₹2.40 lakh crore in Union Budget 2023-2024 and ₹2.52 lakh crore in Interim Budget 2024-2025. Today's Budget may focus on safety, new coaches, new trains and new corridors, experts have said.

Kaushik Das, chief economist for India at Deutsche Bank AG, said, “Tax cuts for middle-income households are highly likely, along with increased expenditure allocation for marginal and rural populations.” Catch all updates on Income Tax changes here

Budget 2024 Live Updates: The Indian Chamber of Commerce (ICC) suggested that the government must rationalise customs duties in various sectors. These include steel, solar battery, aluminum, and lithium cells in a bid to boost domestic manufacturing, it said. ICC President Ameya Prabhu said, “There is a need for rationalization of customs duty in these specific sectors in a holistic manner. Huge potential is there to boost domestic manufacturing and make India a global hub for manufacturing.”

Budget 2024 Live Updates: Nilaya Varma, co-founder and CEO at Primus Partners, said, “The recent economic survey shows a robust 8.2% growth rate, bolstered by the political stability following Prime Minister Narendra Modi's re-election. However, it highlights a significant issue: the lack of timely and detailed job creation data, which hampers accurate job market analysis. Despite this, job growth in trade and services underscores the need for a sustainable employment market and a shift from agriculture to manufacturing.”

Budget 2024 Live Updates: Prime Minister Narendra Modi said: “It is a matter of pride that after 60 years, a government has come to power for the third time and will present the first Budget for the third time. I have been giving guarantees to the people of the country and our mission is to bring this to the ground. This Budget is an important budget for Amrit Kaal. Today's budget will decide the direction for the next 5 years of our term. This budget will also become a strong foundation of our dream of Viksit Bharat."

Budget 2024 Live Updates: Monica Malhotra Kandhari, Managing Director of AASOKA, said, “We hope that the forthcoming Union Budget under the Modi 3.0 government will provide increased funding and support innovative educational solutions. By investing in technology-driven and blended learning models, we can transform the education landscape across India. The National Education Policy 2020 emphasizes making learning interactive, engaging, and meaningful, and additional budget allocations can help bring this vision statement to life."

Budget 2024 Live Updates: The Railway Budget will be presented by Finance minister Nirmala Sitharaman along with the Union Budget. Key announcements in the Budget with respect to Railways may include: increasing the number of coaches, upgrading existing trains and new Vande Bharat categories.

Budget 2024 Live Updates: The government is likely to make changes in capital gains tax in the Union Budget 2024, which could have significant implications for the stock market. Read them here

Budget 2024 Live Updates: The Monsoon Session of the Parliament began on July 22 with Finance minister Nirmala Sitharaman tabling the Economic Survey 2024. The Monsoon Session will have 16 sittings in 22 days and is expected to conclude on August 12.

Budget 2024 Live Updates: Amit Jaipuria, founder and CEO at Postcard Travel Club said, “The government's plan to prioritize sustainable tourism for revenue and employment in its third term is a promising development for the travel sector. Policy incentives aimed at making tourism more sustainable should be implemented, and storytelling to highlight regions and cultures should be further promoted.”

Budget 2024 Live Updates: In the Interim Budget earlier this year, the government proposed to increase capital expenditure outlay by 11.1 per cent to ₹11.11 lakh crore in FY25. Fiscal deficit for the year was pegged at 5.1 per cent of GDP, compared to 5.9 per cent in FY24. In the Interim Budget, Finance minister Nirmala Sitharaman said that the government aims to bring fiscal deficit below 4.5 per cent of GDP by FY26.

Budget 2024 Live Updates: Anil Somani, the Chairman of FOSTIIMA Business School- Delhi said, “We anticipate the government to consider introducing incentives like tax breaks on education loans or scholarships for high-achieving students. This will not only make high-quality education more accessible to people but will also position India as a preferred destination for higher education. Additionally, we expect the budget to focus on providing grants and subsidies which will majorly focus on diploma students and high-school dropouts."

Budget 2024 Live Updates: Brokerage firm Anand Rathi said, “The approach of the budget is more likely to be to stimulate job creation through public investment in infrastructure, improving conditions of doing business, policy support for industry, reforming education and training systems to enhance job skills, and easier access to finance for entrepreneurs.”

JM Financial said the government is likely to announce an increase in infrastructure capital outlay which will affect stocks like KNR Construction, PNC Infratech , RITES, Ahluwalia Contracts.

Budget 2024 Live Updates: S. Sunil Kumar, president of Henkel India, said, The government has played a crucial role through a series of strategic initiatives and policies, such as Make in India and PLI scheme. To accelerate it further, strategic focus areas suggestions that can be beneficial: making raw materials available at scale locally, competitive tax structures, development of industrial corridors, and investments in research and development. Continued emphasis on improving the ease of doing business, streamlining regulations, and ensuring a stable policy environment will be crucial for attracting long-term investments in the industry."