Budget 2024: Will Nirmala Sitharaman Offer Relief To Taxpayers?

Union Finance Minister Nirmala Sitharaman is set to present her seventh consecutive Union Budget in the Lok Sabha today. As the first budget of the Narendra Modi government’s third term, it holds significant importance for the 140-crore-strong democracy of India.

Budget 2024 by Nirmala Sitharaman

Taxpayers have high hopes for Sitharaman, who adeptly steered the country through the COVID-19 pandemic during her first tenure in the finance ministry. Expectations are centered around potential changes in tax slabs, increases in standard deductions, and additional exemptions.

The upcoming budget could feature major announcements in critical sectors such as health, infrastructure, education, defense, real estate, and more. It is anticipated to outline a roadmap for achieving “Viksit Bharat” (developed India) by 2047, as envisioned by Prime Minister Narendra Modi, while also providing an overview of the past decade’s performance.

In her 2019 Budget, Sitharaman replaced the traditional leather briefcase used for carrying Budget documents with a traditional ‘bahi-khata’ wrapped in red cloth, marking a departure from longstanding tradition.

“This budget is an important budget of Amrit Kaal. We have got an opportunity of five years, and this budget will determine the direction of our work for those five years and lay a strong foundation for fulfilling our dream of a ‘Viksit Bharat’ in 2047, when we will celebrate 100 years of independence,” stated the Prime Minister ahead of the second leg of the budget session of Parliament.

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Economic Survey Insights

Prior to the Union Budget, Nirmala Sitharaman presented the Economic Survey in Parliament. The report forecasts a growth rate of 6.5 to 7 percent for the current financial year. It also highlighted the urgent need to create more jobs in the economy.

This growth forecast is lower than the 8.2 percent growth observed in the 2023-24 fiscal year and falls short of the Reserve Bank of India’s 7.2 percent estimate for the current fiscal year.

“The Indian economy is on a strong wicket and stable footing, demonstrating resilience in the face of geopolitical challenges,” wrote Chief Economic Adviser V. Anantha Nageswaran in the preface of the annual financial document.

Stock Market Reaction to Economic Survey

The stock market reacted to the Economic Survey with a slight decline. The Sensex dropped 102 points, settling at 80,502.08. It had fallen by 504 points or 0.62 percent to an intra-day low of 80,100.65 but recovered most of the losses as Infosys and HDFC Bank advanced.

Similarly, the Nifty of the NSE dipped 21.65 points or 0.09 percent to 24,509.25. Throughout the day, it dropped 168.6 points or 0.68 percent to 24,362.30.