Updates Regarding the Forthcoming Union Budget 2024
Indian Union finance minister, Nirmala Sitharaman, is set to present the 2024-25 fiscal budget on February 1, adhering to the tradition set since 2017. Nonetheless, due to the forthcoming general elections in April-May 2024, the upcoming budget will serve as an ‘interim’ one, with the complete financial protocol for FY 2024-25 expected to be disclosed in July by the subsequent government.
The finance minister has alluded that this interim budget would essentially serve as a “vote on account” prior to the general elections, thereby precluding any significant proclamations. In India, a financial year commences on April 1 and culminates on March 31 of the next year.
Understanding the Union Budget: Fundamental Data
The following points offer an overview and key details about the Union budget:
- As an annual financial statement, the Union budget is brought forward by the central government.
- This crucial document outlines the government’s planned income and spending for the upcoming fiscal year.
- It is presented in Parliament by the Union Finance Minister.
- The budget covers the forthcoming financial year which spans from April 1 to March 31 of the subsequent year.
- It involves a thorough document detailing the fiscal strategy and economic policies of the government for the next year.
- It incorporates information regarding the proposed expenses, income, liabilities, and welfare plans.
- The Union budget serves as a critical instrument for financial planning and decision-making.
Auto Sector’s Expectations from the Budget
As reported by Gyanendra Tripathi, Partner & Leader, Western Region, Indirect Tax, BDO India, the EV industry is advocating GST rate reductions on parts and components used in EV manufacturing, as well as batteries. The proposed rates are intended to be lowered to 5% from the current 18-28% and 18%, respectively.
Tripathi also highlighted the sector’s anticipation for the continuation of FAME subsidies, a lucid tax treatment on EV charging, eligibility of Input Tax Credit (ITC) on the establishment of charging stations, and a GST rate cut on basic two-wheelers.
Upcoming Budget: Sixth One for Sitharaman
On February 1, the final budget of the Narendra Modi government’s second term will be released by Union finance minister Nirmala Sitharaman. Notably, it will be her sixth budget, following budgets presented in July 2019, and in the months of February for the years 2020, 2021, 2022, and 2023. All updates will be available on Reader Wall News.
