Two key measures were announced for the insurance sector in the budget. One was reducing the TDS or tax deducted at source on payouts (payments by the life insurer concerned) in respect of life insurance policies from 5% to 2%. This amendment will come into force on October 1, 2024.

Likewise, the Budget has proposed to reduce TDS from 5% – 2% on the Payment of insurance commission. The amendment will take effect from April 1, 2025.

A report by the SBI called for more reforms in the banking sector in India. File
| Photo Credit: Reuterss

As the Central government prepares for the Union Budget presentation on July 23, a research report by the State Bank of India (SBI) has highlighted crucial areas that need attention to drive sustainable economic growth and development in the country.

The report emphasises adherence to fiscal prudence while continuing on the path of fiscal consolidation, suggesting a fiscal deficit target of around 4.9%. “Government should focus on adherence to fiscal prudence and continue on the fiscal consolidation path, but at the same time refrain from obsessing too much over the fiscal stance,” the report stated.

To provide relief in tax structures, the report advocates aligning personal income tax rates with corporate taxes and gradually transitioning all payers to the New Tax Regime.

Additionally, it recommended considering tax parity for bank deposits to attract more savings and boost household financial savings.

For the agriculture sector, it highlighted the need to address issues like financing, livelihood support and the Agri Credit Guarantee Trust Fund.

The report also noted that the Minimum Support Price (MSP) has become politicised and suggested exploring alternatives as the current MSP policy reduces trade and export competitiveness. “The issues innate to MSP mechanism viz. needless politics, disincentivising private investment, neglect of non-MSP crops, reduction in export competitiveness and burden of trade disputes alternative mechanism needs to be looked into vigorously, viz. obligation to private parties for buying crops at MSP,” it said.

The report also suggested developing a comprehensive mineral strategy, especially for critical minerals, to ensure mass employment and secure the supply chain from exploration to recycling.

It called for more reforms in the banking sector in India, including the divestment of public sector banks (PSBs) and the stake sale in IDBI Bank. “After a decade of transformative changes, the Indian banking system stands much healthier ready to scale up to meet emerging challenges as the country embarks on the Viksit Bharat sojourn” it said. It also recommended changes to the Insolvency and Bankruptcy Code and the promotion of Production Linked Incentive (PLI) schemes for MSMEs to reduce import dependency.

The report also noted that by incorporating these suggestions into the upcoming Budget, the Government can lay a strong foundation for sustainable growth, promote financial inclusion, and drive economic resilience in the post-pandemic era.

In a pre-Budget meeting with Finance Minister Nirmala Sitharaman, players demanded incentives in terms of affordable financing option and cheaper land for setting up hospitals in Tier 3 cities. File.
| Photo Credit: ANI

The healthcare industry on June 27 demanded incentives and increased allocations for the sector in the upcoming Budget.

In a pre-Budget meeting with Finance Minister Nirmala Sitharaman, players demanded incentives in terms of affordable financing option and cheaper land for setting up hospitals in Tier 3 cities.

“Prime Minister wanted 3,000 hospitals in the tier 3 towns with 100 bed which has not happened. So, we want government should incentivise private sector in terms of cheaper electricity, cheaper land, affordable loan and single window clearences so that these hospitals can be set up,” Association of Healthcare Providers of India (AHPI) DG Girdhar Gyani said.

Indian Red Cross vice chairman Anand Pandhari said the government should create a cell which will strengthen national education policy’s implementation.

This implementation of NEP would help in capacity building for the healthcare sector.

This was the ninth Pre-Budget consultation chaired by the Finance Minister where experts from health and education sectors gave their suggestions for the upcoming general Budget 2024-25.

The Pre-Budget consultation meeting was also attended by Union Minister of State for Finance Pankaj Chaudhary along with Finance Secretary and Expenditure Secretary, Secretaries of Department of Economic Affairs, Department of Revenue, and Ministry of Finance.

Besides, Secretary, Department of Higher Education and Department of School Education, and Health Secretary also participated in the meeting.