As of the end of March 2024, NBFCs had a CRAR of 26.6%, a GNPA ratio of 4.0% and a return on assets (RoA) of 3.3%. (Representational image only)

Ahead of the upcoming Union Budget scheduled to be presented on July 23, the Non-Banking Financial Company (NBFC) sector is expecting enhanced financial inclusion and reinforcing digitalisation efforts to sustain the sector’s growth.

Finance Industry Development Council (FIDC), which represents the industry, has suggested establishing a special refinancing body, just as the government has created National Housing Bank (NHB) for housing finance companies.

On the other hand, the sector this year has seen stringent regulatory action from the Reserve Bank of India (RBI). Additionally, speaking at an event in May this year, RBI Deputy governor J. Swaminathan cautioned the NBFCs not to be overly reliant on algo-based credit models. However, the apex bank, in its 29th Financial Stability Report (FSR) said that the NBFCs are well capitalised, giving an edge to the financial sector in the country.

As of the end of March 2024, NBFCs had a CRAR of 26.6%, a GNPA ratio of 4.0% and a return on assets (RoA) of 3.3%.

“The growth of the Indian NBFC industry is significantly influenced by robust financial inclusion, consumer demand and improving trade balances. The upcoming Union Budget should emphasise enhancing financial inclusion across the country, implementing policy reforms, and reinforcing digitalisation efforts to sustain the sector’s growth.

Financial and digital inclusion will enhance credit access by increasing convenience and reducing turnaround times,” said Rakesh Kaul, CEO, Clix Capital.

“The government must consider incentivising and promoting such measures so that NBFCs can carefully take advantage of global integration, ensuring sustainable growth and financial inclusion across India’s diverse economic landscape,” said Jitendra Tanwar, Managing Director & CEO of Namdev Finvest Private Limited.

He further added that the government must consider incentivising and promoting such measures so that NBFCs can carefully take advantage of global integration, ensuring sustainable growth and financial inclusion across India’s diverse economic landscape.

Expressing his confidence in the Budget this year, Krishan Gopal, CFO, Aye Finance, said, “I believe this Budget will lay the groundwork for India’s vision of development by 2047. We expect the Government to recognise the efforts of NBFC lenders that are transforming micro-enterprise lending in India by providing customised credit lines, announcing schemes and subsidies and even considering classifying them as Priority Sector Lenders.”

“Despite strong competition from banks, non-banking financial companies (NBFCs) have shown remarkable resilience in retaining a significant market share. To drive further growth, we seek policies that promote responsible credit utilisation, enhance access to credit for underserved communities, and foster financial literacy among customers,” said Mathew Muthoottu, MD Muthoottu Mini Financiers Limited.

”NBFCs are expecting the Budget to carry provisions that spur consumption, such as via tax relief etc.; implement initiatives that enable growth of NBFCs serving priority sector clients; and undertake widespread campaigns aimed at inculcating good credit behaviour amongst the country’s growing borrower base,” opined Neha Juneja, Co-founder and CEO, IndiaP2P, on her Budget expectations.

Anticipating the allocation of additional funds for the sector, Pavitra Walvekar, the CEO of Kudos Finance, which is based out of Pune, said, “Key initiatives should include the allocation of additional funds to improve liquidity for NBFCs and the introduction of regulatory reforms to streamline operations and enhance transparency. These steps will bolster credit availability, particularly for underserved segments like MSMEs, and promote financial stability in the long run.”

Congress general secretary Jairam Ramesh. File
| Photo Credit: PTI

The Congress on July 12 said the forthcoming Budget must address fundamental questions such as why private investment is “very sluggish” and private consumption is not picking up as the party dismissed claims that economic growth is accelerating sharply and large numbers of jobs being created.

Union Finance Minister Nirmala Sitharaman is scheduled to present the Budget for 2024-25 in the Lok Sabha on July 23.

Congress general secretary, in-charge communications, Jairam Ramesh said, “The non-biological PM’s cheerleaders and drumbeaters claim that economic growth is accelerating sharply and that jobs are being created in large numbers. But if this was the case — and it is not — Why is private investment, a key engine of economic growth, still so very sluggish recording a 20-year low during April-June 2024? Why is private consumption, another key engine of economic growth, not picking up except at the high end,” Mr. Ramesh asked.

“Why have household savings plummeted to record lows and household debt shot up to record highs? Why have rural wages continued to fall and why is the wage share of national income declining?” he said, adding, why is manufacturing as a share of GDP at a record low and still decreasing? Why has the informal sector lost 17 lakh jobs in the last seven years? Why did unemployment reach a 45-year peak, with unemployment for young graduates at 42%?” the Congress general secretary said.

“These are fundamental questions that the forthcoming Budget will have to address while the Finance Minister sings praises of the non-biological PM,” Mr. Ramesh said.

On Thursday, the BJP claimed that around 12.5 crore jobs were created in the last 10 years of the Modi government and cited the latest Reserve Bank of India report to assert the creation of “five crore jobs in 2023-24 alone”.

Several experts have urged the government to provide tax relief to the common man to boost consumption and take steps to check inflation and accelerate economic growth.

The economy has recorded a growth rate of 8.2% in 2023-24. Earlier in February, Ms. Sitharaman presented an Interim Budget for 2024-25 in view of the Lok Sabha elections.

Union Finance Minister Nirmala Sitharaman holding a folder-case containing the Interim Budget 2024.
| Photo Credit: SHIV KUMAR PUSHPAKAR

A ‘robot tax’ to cross-subsidise employees who lose jobs because of the adoption of Artificial Intelligence (AI) by their employers is a key item on the budget wishlist of the Swadeshi Jagran Manch (SJM), which is affiliated with the Rashtriya Swayamsevak Sangh (RSS).

In a pre-Budget meeting of economists with Finance Minister Nirmala Sitharaman last month, the SJM also suggested that tax incentives be given to industries generating more employment, based on an employment-output ratio.

Fund to upskill workers

Ashwani Mahajan, economist and national co-convenor of the SJM, who attended the June 20 meeting told The Hindu that economic measures were needed to cope with the human cost of AI. “We are not against the adoption of cutting-edge technology including AI, but it is a fact that in the short run, this will lead to loss of employment among certain sections of employees, and a ‘robot tax’, as it’s being termed, can be used for creating a fund that would help these workers upskill and adapt to new technologies,” he said, adding that such a tax is under consideration in several other countries as AI-generated disruption is hitting most economies.

A paper released by the International Monetary Fund (IMF) in June also argues that the AI transition will require fiscal incentives and stronger social nets being put in place, for all economies. Last year, Prime Minister Narendra Modi had cautioned people about the perils of misinformation and fake news with regard to AI, but the question of people falling out of the job market and being replaced by robots is a real worry.

‘Incentivise job creation’

Apart from the ‘robot tax’, some concerns raised during the recent parliamentary poll campaign are also reflected in the SJM’s wishlist. With unemployment being a major theme during the campaign, the SJM has suggested that industries be incentivised to create more jobs through tax measures.

With regard to food inflation, SJM proposed that small farmers be given subsidies for micro irrigation projects that they can start on their lands to increase productivity. It also recommended that these micro irrigation projects be made eligible for funding via corporate social responsibility (CSR), by adding them to Schedule VII of the Companies Act, 2013.

Wealth tax

On the issue of housing for all, the SJM suggested that a wealth tax be imposed on those holding “vacant land”, in order to “discourage unneccessary land holding on the pretext of future requirements”.

Ms. Sitharaman and Prime Minister Narendra Modi have been speaking to a range of stakeholders and economists in the run-up to the presentation of the Union Budget, which is expected to take place on July 23. The Budget session of Parliament will begin on July 22 and is expected to end on August 12.

Finance Minister Nirmala Sitharaman will present the full Union Budget for 2024 on July 23. The highly anticipated budget is the BJP-led NDA government’s first after its re-election for a third term. The budget is expected to outline the government’s vision for the country’s economic growth, development and fiscal policies for the upcoming financial year.

The budget presentation will begin at 11 am in the Lok Sabha and will be broadcast live on various platforms. While it is now a norm for the budget to be presented at 11 am, this was not always the case. 

History: Time of Budget presentation

Until 1999, the Budget was presented at 5 pm, a tradition inherited from the colonial era. This timing was convenient for the British government, as it allowed for announcements in London and India simultaneously. As India is 5 hours 30 minutes ahead of the UK, the 5 pm timing in India corresponded to 11:30 am GMT, making it easier for the British government to coordinate the budget announcements.

However, even after India gained independence, the 5 pm timing remained unchanged. It wasn’t until 1999 that Yashwant Sinha, the then-finance Minister under the Atal Bihari Vajpayee-led government, decided to change the presentation time to 11 am. This change was made for two important reasons. Firstly, India was no longer a British colony, and therefore, didn’t need to follow London’s time zone. Secondly, he wanted to give lawmakers and officials more time to study and discuss the budget.

On February 27, 1999, Yashwant Sinha presented the Union Budget at 11 am for the first time. This new timing became a permanent change, and since then, all Union Budgets have been presented at 11 am. 

History: Date of Budget presentation

Historically, the budget was presented on the last day of February. However, former Finance Minister Arun Jaitley broke away from this tradition and started presenting the budget on February 1. The change was made to allow for a smoother implementation of new budgetary policies from the start of the new financial year on April 1. The extra month provided a more practical timeframe for the government to put the budget plans into action. 

In 2016, the Railways Budget, which was earlier presented separately, was merged with the Union Budget, ending a 92-year-old tradition. 

Finance Minister Nirmala Sitharaman will table the Union Budget on July 23. With that, she will become the first Finance Minister to deliver seven straight budgets, surpassing Morarji Desai. She presented the interim budget on February 1, 2024.

Why India has two budgets this year?

India has two budgets this year due to the recent general elections. The Interim Budget, presented before the election, was a temporary measure to ensure continuous government funding until a new government took office. The upcoming Full Budget, to be presented by the newly elected government, outlines the detailed financial plan for the fiscal year, including revenue, spending, and economic policies.

The Interim Budget is a limited version, only covering essential expenses until the new government takes over. In contrast, the full budget is a detailed financial plan, outlining the government’s vision for the entire year. This includes allocations for various sectors, tax proposals, and initiatives to boost economic growth.

Key differences between the Interim and the Annual Budget

The Interim Budget is a temporary measure presented by the current government before elections. It deals with expenditure only and can be passed without discussion. This budget allows the government to withdraw money from the Consolidated Fund of India to meet its expenses until a new government comes to power.

The Interim Budget usually does not contain major policy measures or changes to the tax structure. 

On the other hand, the Full Budget is a comprehensive financial plan presented by the new government after the elections. It includes revenue, expenditure, and policy details and is scrutinised and debated by both Houses of Parliament.

The Full Budget must be approved by Parliament and is valid until the end of the financial year, March 31. It includes new policies, schemes and reforms aimed at driving long-term growth and development.

Annual Budget: Date

The Budget session will commence on July 22 and run until August 12. Finance Minister Nirmala Sitharaman will present the Union Budget 2024 on July 23. 

India’s health system is at a crossroads as it needs to, without any further procrastination, build the capacity in all States, particularly the northern States, to cope with the dual burden of disease, writes former health secretary Sujatha Rao. Image for representation purposes only. File
| Photo Credit: Pixabay

A goal post that consistently shifts is the one related to increasing public health spending to the magical figure of 2.5% of GDP. Current total health spending is about 3.5%. Of this public health spending is about 1.35%. Low public spending implies high out of pocket expenditures by households.

Demonetization, GST and the COVID pandemic in quick succession have adversely impacted millions of households living at the margin with stagnant wages, high prices of food and borrowings, making ‘affordability’ of health care critical. While 13.4% of households in rural areas and 8.5% in urban areas have borrowed money to pay their medical bills, the rest have either sought access to free public care, denied themselves health care or availed substandard care that is within their budget. An estimated 60-80 million households are reported to have fallen below the poverty line for availing medical care. What is certainly a paradox of Indian politics is that despite all this, health is a non issue for electing governments.

India’s health system is at a crossroads as it needs to, without any further procrastination, build the capacity in all States, particularly the northern States, to cope with the dual burden of disease. Communicable and infectious diseases are easier to handle in terms of the episodic nature of the disease, though, if neglected, the consequences can be devastating and brutal. Non-communicable diseases on the other hand have to be managed over a lifetime necessitating a steady, routinised, system of care. Tackling both requires a health system that is swift and nimble but also steady and solid. Getting the right balance is the key: the right mix of skills and competencies, technology, infrastructure and supervisory systems. All this needs money.

While most countries have brought in reforms and revamped their delivery systems to make them fit for purpose, India has wasted much time, in constantly hemming its budgets at the edges and resorting to knee-jerk responses to every health crisis, such as increasing the sum assured – ₹5 lakh to ₹10 lakh to ₹15 lakh and so on – under subsidised social health insurance. The increases in sums assured are just meaningless and most lazy of all ways of setting right a deeply flawed system of care.

With the budget time around the corner, there are huge expectations, despite the past being so uninspiring. Since 2010, India’s public spending, in proportion to the GDP, has hovered around 1.12% to 1.35%. In gross terms, though central budget allocations have certainly improved – up from ₹25,133 crore in 2012-13 to ₹86,175 crore in 23-24, the proportion to GDP of the central health budget has been around 0.27%. With States averaging a 5% spending of their revenue budgets against the targeted 8%, overall public health spending is not just low but disproportionately low in the poorer States like Bihar.

While overall allocations have been disappointing, a real positive is the loan of $65 million from the World Bank and $175 million from the ADB that has recently been negotiated. Under this the focus is, and rightly, on strengthening the district-level disease surveillance laboratory infrastructure, establishing ICUs in large districts, strengthening primary health care facilities and so on. While these loans will fill the glaring gaps in our health system as thrown up during the COVID pandemic, India, however, cannot stop and needs to invest hugely and quickly in building the basic health infrastructure in the country, particularly in the States of Bihar, U.P., MP, Orissa, Rajasthan, Chattisgarh, Jharkhand and Assam where shortfall of both facilities as well as human resources is far above the national average of 30%. This disparity needs to be bridged with a dramatically differential package of funding from the Central Government. Till the supply position improves, demand-side interventions like Ayushman Bharat (PMJAY) are of marginal value, more so, with out-patient care not being insured. Systems in these States must be developed and the Finance Ministry must make a beginning with not only substantially increasing health budgets, particularly for NHM, but in addition, allocate all the money collected under the 4% health cess to the health budget. Of the total of ₹69,063 crore collected so far, only 25% of it has been transferred to the Health Ministry.

In addition to strengthening the public health systems, there is a need to rationalise the GST levies on health products, such as 18% GST on health insurance premiums or 5% GST on insulin and hepatitis diagnostics when the number of diabetics and those prone to hepatitis are increasing. Disincentives also need to be considered for those private entities that are increasing the cost of care despite full GST exemptions and a huge number of other sops being extended from time to time.

The bottom line regarding the health sector, however, is all about the role of the State, the rights of a tax-paying citizenry and the development model proposed. Is health a public good? Is healthy well-being a foundational prerequisite for human development? Is health a part of the social contract that citizens have with the State when they pay taxes? Is there a societal obligation to help those who are sick and ill? If the answer is in the affirmative, then it is time for the government to double the health budget alongside launching a reform agenda to set right a dysfunctional system. This takes time, needs political consensus and not be disrupted or buffeted about on account of an unstable political environment. Other countries have shown the way. India needs to now follow their path to lend credibility to the aspiration of being a developed country by 2047.

[Kannuru Sujatha Rao is India’s former Health Secretary; She was Director General National Aids Control Organisation before that. She is also the author of a 2017 book – India’s Health System: Do we care?]

India’s health system is at a crossroads as it needs to, without any further procrastination, build the capacity in all States, particularly in the northern States, to cope with the burden of disease. Image for representation purposes only. File photo: Pixabay

A goal post that consistently shifts is the one related to increasing public health spending to the magical figure of 2.5% of GDP. Current total health spending is about 3.5%. Of this public health spending is about 1.35%. Low public spending implies high out of pocket expenditures by households.

Demonetization, GST and the COVID pandemic in quick succession have adversely impacted millions of households living at the margin with stagnant wages, high prices of food and borrowings, making ‘affordability’ of health care critical. While 13.4% of households in rural areas and 8.5% in urban areas have borrowed money to pay their medical bills, the rest have either sought access to free public care, denied themselves health care or availed substandard care that is within their budget. An estimated 60-80 million households are reported to have fallen below the poverty line for availing medical care. What is certainly a paradox of Indian politics is that despite all this, health is a non issue for electing governments.

India’s health system is at a crossroads as it needs to, without any further procrastination, build the capacity in all States, particularly the northern States, to cope with the dual burden of disease. Communicable and infectious diseases are easier to handle in terms of the episodic nature of the disease, though, if neglected, the consequences can be devastating and brutal. Non-communicable diseases on the other hand have to be managed over a lifetime necessitating a steady, routinised, system of care. Tackling both requires a health system that is swift and nimble but also steady and solid. Getting the right balance is the key: the right mix of skills and competencies, technology, infrastructure and supervisory systems. All this needs money.

While most countries have brought in reforms and revamped their delivery systems to make them fit for purpose, India has wasted much time, in constantly hemming its budgets at the edges and resorting to knee-jerk responses to every health crisis, such as increasing the sum assured – ₹5 lakh to ₹10 lakh to ₹15 lakh and so on – under subsidised social health insurance. The increases in sums assured are just meaningless and most lazy of all ways of setting right a deeply flawed system of care.

With the budget time around the corner, there are huge expectations, despite the past being so uninspiring. Since 2010, India’s public spending, in proportion to the GDP, has hovered around 1.12% to 1.35%. In gross terms, though central budget allocations have certainly improved – up from ₹25,133 crore in 2012-13 to ₹86,175 crore in 23-24, the proportion to GDP of the central health budget has been around 0.27%. With States averaging a 5% spending of their revenue budgets against the targeted 8%, overall public health spending is not just low but disproportionately low in the poorer States like Bihar.

While overall allocations have been disappointing, a real positive is the loan of $65 million from the World Bank and $175 million from the ADB that has recently been negotiated. Under this the focus is, and rightly, on strengthening the district-level disease surveillance laboratory infrastructure, establishing ICUs in large districts, strengthening primary health care facilities and so on. While these loans will fill the glaring gaps in our health system as thrown up during the COVID pandemic, India, however, cannot stop and needs to invest hugely and quickly in building the basic health infrastructure in the country, particularly in the States of Bihar, U.P., MP, Orissa, Rajasthan, Chattisgarh, Jharkhand and Assam where shortfall of both facilities as well as human resources is far above the national average of 30%. This disparity needs to be bridged with a dramatically differential package of funding from the Central Government. Till the supply position improves, demand-side interventions like Ayushman Bharat (PMJAY) are of marginal value, more so, with out-patient care not being insured. Systems in these States must be developed and the Finance Ministry must make a beginning with not only substantially increasing health budgets, particularly for NHM, but in addition, allocate all the money collected under the 4% health cess to the health budget. Of the total of ₹69,063 crore collected so far, only 25% of it has been transferred to the Health Ministry.

In addition to strengthening the public health systems, there is a need to rationalise the GST levies on health products, such as 18% GST on health insurance premiums or 5% GST on insulin and hepatitis diagnostics when the number of diabetics and those prone to hepatitis are increasing. Disincentives also need to be considered for those private entities that are increasing the cost of care despite full GST exemptions and a huge number of other sops being extended from time to time.

The bottom line regarding the health sector, however, is all about the role of the State, the rights of a tax-paying citizenry and the development model proposed. Is health a public good? Is healthy well-being a foundational prerequisite for human development? Is health a part of the social contract that citizens have with the State when they pay taxes? Is there a societal obligation to help those who are sick and ill? If the answer is in the affirmative, then it is time for the government to double the health budget alongside launching a reform agenda to set right a dysfunctional system. This takes time, needs political consensus and not be disrupted or buffeted about on account of an unstable political environment. Other countries have shown the way. India needs to now follow their path to lend credibility to the aspiration of being a developed country by 2047.

[K. Sujatha Rao is India’s former Health Secretary; She was Director General National Aids Control Organisation before that. She is also the author of a 2017 book – India’s Health System: Do we care?]

India’s Finance Minister Nirmala Sitharaman holds up a folder with the Government of India’s logo as she leaves her office to present the federal budget in the parliament, before the nation’s general election, in New Delhi, India, February 1, 2024.
| Photo Credit: REUTERS

The government under Prime Minister Narendra Modi should focus on adherence to fiscal prudence and continue on the fiscal consolidation path, suggested SBI Research ahead of the much-awaited full Budget for 2024-25 to be tabled on July 23 – the first Budget under Modi 3.0.

What is fiscal deficit?

The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings that may be needed by the government.

SBI Research suggested that the Centre should target a fiscal deficit of 4.9%, but it must not obsess too much over the fiscal stance. The Government intends to bring the fiscal deficit below 4.5% of GDP by the financial year 2025-26.

In the Interim Budget earlier this year, the Government has targeted a fiscal deficit of 5.1% of GDP for 2024-25. However, SBI Research believes that the Government may budget a fiscal deficit of less than “5% — may be 4.9% — for 2024-25” due to stellar growth in GST revenues and higher dividends from PSUs and RBI.

State borrowings

As the budgeted fiscal deficit gets lowered, the gross market borrowing of the government will also reduce to around ₹13.5 lakh crore in FY25 compared to ₹14.1 lakh crore in the interim budget and net market borrowing to ₹11.1 lakh crore against ₹11.8 lakh crore earlier, the report, authored and led by Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI, said. “This along with India’s inclusion in Global Bond indices will keep the yield curve movements anchored,” it added.

In 2023-24, the Government pegged the fiscal deficit target for FY2023-24 at 5.9% of gross domestic product (GDP). Later, it was downwardly revised to 5.8%.

The interim budget, tabled on February 1, took care of the financial needs of the intervening period until a government was formed after the Lok Sabha polls, after which a full budget was supposed to be presented by the new government in July.

FM Sitharaman to break record with sixth budget presentation

With this upcoming Budget Presentation,surpassed the record set by former Prime Minister Morarji Desai, who as finance minister, presented five annual budgets and one interim budget between 1959 and 1964.

Mrs. Sitharaman’s upcoming Budget speech would be her sixth.The government on July 6 announced the dates of the Budget session of Parliament which will start on July 22 and conclude on August 12.

Image used for representative purpose only
| Photo Credit: AFP

There is a need to incentivise R&D investments, offer corporate tax concessions and establish an effective intellectual property rights regime in order to push the growth of domestic pharmaceutical industry, as per the industry bodies.

Outlining the sector’s wish list for the upcoming Union Budget, Organisation of Pharmaceutical Producers of India (OPPI) Director General Anil Matai urged the government to explore methods to incentivise R&D investments, such as deductions on R&D expenses, research-linked incentives for MNCs, and corporate tax concessions.

The initiatives will help in accelerating R&D and innovation in the sector, he added.

“Recognising the high-risk, long-gestation nature of R&D, we suggest extending the scope of section 115BAB of the Income Tax Act, 1961 to companies solely engaged in pharmaceutical research and development and providing a 200 per cent deduction rate on R&D expenditures,” Matai said.

This would significantly boost the sector’s ability to undertake essential research and development, including clinical trials and patent registration, he added.

Matai also sought establishing an effective intellectual property rights regime for driving growth and encouraging research-based pharma companies, both global and domestic, to introduce innovative therapies in India towards addressing unmet medical needs.

Besides, he sought introduction of incentives for centres and companies that provide specialised training programmes for pharmaceutical employees.

“Incentives for developing treatments for rare diseases are also crucial,” Matai said.

Besides, enhancing the management of rare diseases through more centres of excellence (CoEs), increased budget allocations for incentivising R&D on therapies for rare disease, and import duty waivers are essential, he noted.

“Expanding the list of life-saving drugs eligible for GST/import duty exemptions, including all oncology medications, will further improve patient affordability,” Matai said.

In order to attract investment and contribute to a more resilient and future-ready pharmaceutical industry, the government should provide incentives for investments in bonds issued by pharmaceutical companies, he added.

OPPI represents the research-based pharmaceutical companies, including AstraZeneca, Novartis and Merck, in India.

Indian Pharmaceutical Alliance (IPA) Secretary General Sudarshan Jain said the policy direction should leverage the industry’s knowledge-driven foundation and the status as a global manufacturing hub.

The thrust should be on quality and innovation, he stated.

Given the high risk, lengthy development periods, and low success rates in research, continuous investment is crucial, he added.

“The 2024-25 budget should introduce policies that provide direct and indirect tax benefits to encourage research and investment in becoming a global benchmark in quality,” Jain said.

IPA is an association of leading research-based pharmaceutical companies in India.

The members include Cipla, Dr Reddy’s Laboratories, Sun Pharma and Lupin.

The full Budget for the year 2024-25 will be presented on July 23, with the Parliament session beginning a day earlier, Union Minister Kiren Rijiju announced on Saturday.

The Parliamentary Affairs minister said the Budget session will begin on July 22 and is scheduled to end on August 12.

Hon’ble President of India, on the recommendation of Government of India, has approved the proposal for summoning of both the Houses of Parliament for the Budget Session, 2024 from 22nd July, 2024 to 12 August, 2024 (Subject to exigencies of Parliamentary Business). Union Budget,…

— Kiren Rijiju (@KirenRijiju) July 6, 2024

“Hon’ble President of India, on the recommendation of Government of India, has approved the proposal for summoning of both the Houses of Parliament for the Budget Session, 2024 from 22nd July, 2024 to 12 August, 2024 (Subject to exigencies of Parliamentary Business). Union Budget, 2024-25 will be presented in Lok Sabha on 23 July, 2024,” the minister posted on X. 

Finance Minister Nirmala Sitharaman had presented the interim Budget in February in view of the upcoming Lok Sabha elections. She will be presenting her seventh consecutive Budget, becoming the first finance minister in India’s history to do so, surpassing the previous record set by Morarji Desai.

This will be the first Budget presented during Narendra Modi’s third term as Prime Minister and also the first under him in which the BJP does not have a majority on its own. 

Expectations from the Budget have been high and were fuelled further when President Droupadi Murmu said in her joint address that it will see “many historic steps” and accelerate the pace of reforms. 

“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… “The pace of reforms will be further accelerated in tune with the aspirations of people of India for rapid development,” she had said on June 27.

For the middle and salaried classes, one of the biggest expectations is that there will be a change in the income tax structure which will leave more disposable income in their hands.

Stormy Session?

The special session of the Parliament, the first in the 18th Lok Sabha, witnessed stormy scenes with the strengthened opposition looking to make its presence felt under the new Leader of the Opposition in the House, Rahul Gandhi. In the general elections, the results for which were declared on June 4, the INDIA alliance won 232 seats and restricted the BJP to 240. The NDA, though, has a comfortable majority with 293 MPs.

The NEET paper leak exam issue, Manipur, Emergency, Agnipath scheme and the alleged abuse of the Constitution by the ruling dispensation dominated the special session and are likely to make their presence felt in the Budget session as well.