New Delhi: Union Budget 2024 LIVE Updates -Hopes for Relief from Inflation and Unemployment: Ahead of the Union Budget 2024, Shiv Sena (UBT) MP Priyanka Chaturvedi expressed hope that Finance Minister Nirmala Sitharaman will address rising inflation and unemployment. Chaturvedi emphasized the need for the government to focus on the public's concerns rather than the Prime Minister's agenda.
Finance Minister Nirmala Sitharaman Presents Paperless Budget 2024-25 with Traditional Touch
Finance Minister Nirmala Sitharaman continued her practice of presenting a paperless budget by carrying a digital tablet encased in a traditional 'bahi-khata' style pouch as she headed to Parliament on Tuesday for the Budget 2024-25 presentation. Draped in a white silk saree adorned with a magenta border, she posed for the customary 'briefcase' photo with her team of officials outside her office before meeting the President.
Fiscal Deficit and Economic Projections for FY 2024-25:
The fiscal deficit for FY 2023-24 was recorded at 5.63% of GDP, with a target set at 5.1% for FY 2024-25. Due to the significant contribution of personal tax to the overall direct-tax collections, the government is unlikely to implement measures that would substantially decrease tax revenue.
Ahead of the Union Budget, Finance Minister Nirmala Sitharaman presented the Economic Survey for the financial year 2024 in the Lok Sabha on July 22. The survey forecasted India's GDP growth for FY 2025 to be between 6.5% and 7%. This projection is lower than the 8.2% economic growth rate estimated for the previous financial year.
Speculation is rife that FM Sitharaman might introduce some tax relief measures and adjust the tax rebate limit. Experts predict an increase in the tax rebate limit from Rs 7 lakh to Rs 7.5 lakh under the new tax regime with minimal exemptions. This adjustment aims to benefit low-income earners while leaving higher tax slabs unaffected.
Currently, taxpayers can choose between two tax regimes. The old tax regime offers a variety of deductions and exemptions. In contrast, the new tax regime features lower tax rates but limited deductions and exemptions, aside from the standard deduction. The primary advantage of the new regime is its lower tax rate compared to the old regime, which retains its extensive deductions and exemptions.
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In the Union Budget 2023, the tax rebate limit under the new regime was increased from Rs 5 lakh to Rs 7 lakh. This change was accompanied by an increase in the basic exemption limit and a restructuring of tax slabs and rates. The new regime is designed for simplicity and minimal compliance, while the old regime continues to benefit those who utilize multiple deductions, such as home loan interest under Section 24(b) or house rent allowance (HRA).