Budget 2024 Expectations: Centre vs State spending patterns

Public expenditure on education in India has been increasing annually since 2013. In 2022, an estimated RS 757,000 crore was spent by both the central and state governments. However, it is still very less from the recommended figure by the National Education Policy. The policy recommended that India allocate at least 6% of its GDP to education. However, actual public expenditure has remained around 2.8% of GDP. More than 85% of public education spending is covered by state governments. In 2022-23, states are estimated to bear 89.3% of the total education expenditure, while the central government contributes 10.7% through specific programs.

https://www.financialexpress.com/budget/budgetnbsp-2024-expectations-cantre-vs-state-spending-on-educationnbsp-3561330/

Budget 2024 expectations: In the Budget, the Finance Minister is expected to take steps to provide economic boost to sustain India’s growth momentum

4 sectors, 19 stocks to focus on as investors prepare for Budget announcements tomorrow.

Finance Minister Nirmala Sitharaman is going to present the full Budget of the Narendra Modi 3.0 government for the fiscal year 2024-25 on July 23.

In the Budget, the Finance Minister is expected to take steps to provide economic boost to sustain India’s growth momentum. In first Union Budget post Lok Sabha elections, there is expectation that Finance Minister will provide relief on the income tax front to put more money in the hands of the common man and even the middle class. The Modi government is expected to continue its focus on capital expenditure to drive GDP growth, with special emphasis on infrastructure development.

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Union Budget 2024: The brokerage expects the government to continue spending on roads and railways, special focus on housing, renewable energy, and water infrastructure.

The NDA government is likely to continue its focus on the infrastructure in Union Budget on July 23. FM Nirmala Sitharaman may hike capex for public investment in infrastructure with specific focus on renewable energy, City Gas Distribution and water. Here’s a look at how the government is likely to promote the infrastructure sector, leading to exponential growth in the Indian economy.

Income Tax Changes in Budget 2024

Potential Changes in Income Tax

Increased Tax Exemption Limit: There is a strong possibility of raising the basic exemption limit under the new tax regime from Rs. 3 lakh to Rs. 5 lakh, providing significant relief to taxpayers in the lower income bracket.

Tweaks to New Tax Regime: The government might introduce further changes to make the new tax regime more attractive. This could include adjustments in tax slabs or the introduction of additional deductions.

Hike in Standard Deduction: Increasing the standard deduction limit could offer additional tax relief to salaried individuals.

Extension of Tax Benefits: There is a possibility of extending certain tax benefits or incentives to promote specific sectors or investments.

Income Tax Budget 2024 LIVE: Expected Tax Announcement By FM

Increase in basic exemption limit: This could be raised from Rs 7 lakh to Rs 8 lakh to benefit a larger taxpayer base.

Stock Market Live Updates: Investors look for positive indicators as budget speech underway.

Stock market Live Updates: Finance minister Nirmala Sitharaman is set to present the Union Budget 2024 today laying out economic priorities of the government under Prime Minister Narendra Modi. The budget is expected to cut taxes for the middle class and provide relief for rural areas. Madhavi Arora, an economist at Emkay, said, “Weaker political capital, uneven growth story with tepid consumption, and missing vigour in private capex and the rural sector form the backdrop of the upcoming Budget.”

Union Budget 2024-25 Update:Capex for FY24-25 pegged at Rs. 11.1 lakh crore same as interim budget
Union Budget 2024-25 Update:Development for Advance ultra super critical technology will lead to a JV formed between NTPC and BHEL for setting up a 800 MW power plant
Union Budget 2024-25 Update:Government remains committed for building 3 crore additional homes pan India (Rural + Urban) under Pradhan Mantri Awas Yojana
Union Budget 2024-25 Update:Finance minister announces budgetary allocation for supporting building of more than 1 crore homes in Urban India. Positive for domestic steel companies like JSW STEEL
Union Budget 2024-25 Update: Policy for pump storage generation for storage and energy transition. Positive for power generators like NHPC, SJVN, JSW energy
Union Budget 2024-25 Update: Water supply : In partnership with state government for water treatment and sewerage treatment for cities. Positive for water EPC companies like Va Tech Wabag

Budget highlights employment, skilling, MSMEs, and middle class

Updated - July 23, 2024 at 12:06 PM.

Sensex, Nifty, Share Prices LIVE: The Indian benchmark indices opened flat with a positive bias as they awaited Budget announcements. BSE Sensex declined by 182.91 pts or 0.23% to trade at 80,319.17 as at 11.54 am, and Nifty 50 slipped by 49.45 pts or 0.2% to trade at 24,459.80. Adani Green Energy (3.13%), Borosil Renewables (9.84%), Sterling and Wilson Renewable Energy (1.62%), Inox Wind Energy (1.11%), and Suzlon Energy (4.88%) saw notable gains following budgetary announcements. Key budget highlights include relief on stamp duty for women’s property ownership and increased outlay under PM Awaas Yojna, which are supportive of companies like Ajmera, Prestige, Godrej Properties, HUDCO, GIC Housing, PNB Housing, and Repco Home. The budget also focuses on water supply and solid waste management, benefiting companies like VaTech and Antony Waste. Additionally, construction and infrastructure stocks surged as FM Nirmala Sitharaman announced significant developments for Bihar, including new airports, medical facilities, and sports infrastructure. In the agriculture sector, the digitization of public infrastructure for lands within three years will benefit companies like CDSL, CE Info Systems, and Genesys, according to T Manish, Research Analyst at SAMCO Securities.

Budget 2024 has hiked short-term capital gains from equity shares and equity mutual funds to 20%. It will be applicable, irrespective of the tax slab. Budget 2024 has mentioned long-term capital gains will be taxed at a flat rate of 12.5% without indexation.

The final Budget presented by Finance Minister Nirmala Sitharaman has not deviated much from February's Interim Budget with some small changes.

Capital expenditure (capex) growth is driven by a 27 per cent increase in government expenditure. The sector-wise focus remains unchanged, with the highest allocation towards defence.

Overall, the Budget aims to balance fiscal prudence with growth, focusing on tax simplification, skill and employee development, dispute resolution, ease of doing business, and infrastructure development while maintaining fiscal consolidation.

Key positives

(i) The government aims to maintain fiscal discipline with a targeted fiscal deficit of 4.9 per cent, which is commendable.

(ii) The allocation of ₹2.66 lakh crore for rural development will significantly boost economic activity, create job opportunities and improve rural living standards and incomes.