Tax-Cut, Inflation Check Hope Mount As Centre May Table Budget On July 24

Bhubaneswar: Faced with the challenge to boost growth while controlling inflation, Finance minister Nirmala Sitharaman is likely to present the full Budget for 2024-25 on July 24 during the Monsoon Session of the Parliament.

On February 1, the Finance minister had presented the interim Budget.

According to a report by the Financial Express, the Economic Survey for the current fiscal will be tabled on July 23. However, there has been no official confirmation in this regard. The report cites that the final decision on both the dates is pending.

The usual practice suggests that there is a gap of 15 days between two Parliamentary sessions. In the 18th Lok Sabha, the inaugural session had concluded on July 2. Therefore, the next session is likely to commence between July 18 and 22.

The interim Budget had avoided major policy changes or concessions for the middle class. So, there are mounting expectations from the Budget FY2024-25. Moreover, President Droupadi Murmu, in her address to Parliament, had stated that the full Budget would contain “historic steps” and include key economic decisions. She claimed that the government would accelerate the pace of reforms, dubbing it to be the government’s ‘futuristic vision’ for ‘Viksit Bharat.’

Expectations of the salaried class from Budget FY25
According to an analysis published in moneycontrol.com, the salaried class awaits tax reductions amidst increasing cost of living. The analysis cited a Deloitte report that the salaried class is advocating a revision in the tax slabs, adjustments in Housing Rent Allowance (HRA) rates, incentives for electric vehicle (EV) sales, and increased support for affordable housing. The rates in the old tax regime have remained unchanged even as there have been budgetary adjustments in 2023 introduced to the new personal tax regime. For instance, the basic exemption limit under the new regime had been increased from Rs 2.5 lakh to Rs 3 lakh. The surcharge on incomes exceeding Rs 5 crore was reduced from 37 per cent to 25 per cent.

Will Budget FY25 push up health spending?
As per analysts, there has been considerable stagnation in terms of health spending over the past decade. The Union government had allocated only 0.3 per cent of the GDP towards healthcare, cites a Moneycontrol analysis. Though health spending temporarily increased to 0.41 percent of GDP at the time of pandemic, it dipped to 0.28 per cent. They key government initiative of National Health Mission has also seen a decline in its share. Prior to pandemic, it accounted to more than 60 per cent of total health expenditure, But in FY24, it stood at its lowest in a decade at 54.6%, claims the analysis.