Interim Budget 2024: Tax Stability, Industry Insights, and Future Projections

Union Finance Minister Nirmala Sitharaman presented the Interim Budget for 2024 in Parliament, assuring citizens that there would be no alterations to income tax slabs and rates. This budget, significant in the prelude to the Lok Sabha elections, sets the stage for economic expectations as the nation anticipates the formation of a new government post-election.

Understanding the Interim Budget: During election years, the incumbent government cannot present a full budget. Therefore, an Interim Budget, outlining expenses and revenues for a brief period, is introduced. It serves as a crucial tool for the government to manage financial obligations until the formation of the new government.

Industry Experts Weigh In: MSMEs Perspective: Sandeep Agrawal, Director and Co-founder at TeamLease Regtech, highlighted the government's focus on accelerating economic growth, especially in remote and underdeveloped areas. The commitment to improving existing mechanisms and state infrastructure aligns with the vision of 'Amrit Kaal' and 'Vikshit Bharat.' The emphasis on affordable housing, clean energy, healthcare, and food security aims to eliminate multidimensional poverty.

Electric Vehicle Ecosystem and Manufacturing Support: Sameer Aggarwal, CEO and Founder at Revfin, praised the commitment to fortifying the Electric Vehicle (EV) ecosystem and supporting manufacturing and charging infrastructure. The continued focus on rural economy support, youth skill development, and gender-inclusive initiatives reflects a holistic approach toward inclusive and sustainable growth.

Empowering Female Entrepreneurship: Richa Jaggi, Co-Founder & CMO at Awshad, expressed excitement about the unwavering emphasis on fostering female entrepreneurship. Initiatives like the MUDRA Yojana and the surge in female enrollment in higher education are expected to have a profound impact on the workforce.

Technological Advancements and Innovation: Sahil Chopra, Founder & CEO of iCubesWire, commended the government's focus on harnessing new-age technologies and data. The commitment to providing incentives and support in sunrise sectors is seen as a significant leap forward in empowering startups and entrepreneurs.

Electric Vehicle Ecosystem Support and Tax Benefits for Startups: Dhananjaya Bharadwaj, Co-Founder and CEO of ParkMate, applauded the budget's focus on fortifying the electric vehicle ecosystem. He highlighted the positive impact of allocating a 1-lakh crore corpus with a 50-year interest-free financing scheme for private sector R&D. The extension of tax benefits to startups until March 31, 2025, reflects continued support for entrepreneurial ventures.

Overall Outlook: Industry experts find the interim budget promising, with a balanced outlook toward growth and sustainability. The focus on "Garib, Mahilayen, Yuva, and Annadata" showcases the government's commitment to grassroots development. While tax rates remain constant, initiatives supporting the tech-led youth and startup economy are deemed remarkable. The substantial fund allocations, especially for projects like PM Mudra Yojana, instill confidence in the market and trust in the economy.

Opinion by Siba Panda, Founder and Managing Partner at ValuAble: The interim budget is seen as a boost to confidence in the market, aligning with the core ideology of Viksit Bharat @2047. Though major fund allocations have been earmarked, the budget is expected to have a positive impact on market sentiment and trust in the economy.

The interim budget provides a glimpse into the government's priorities and sets the stage for the comprehensive budget for the financial year 2024-25, to be introduced after the formation of the new government post-election. Stay tuned for live updates and in-depth analyses as the budget's impact unfolds.