Parliamentary Affairs Minister assures readiness to discuss issues in Parliament

Ahead of the budget, experts from the healthcare sector have emphasized the need for increased government spending, improved infrastructure, and enhanced innovation to build a robust healthcare system in India.

Apart from that, the Indian healthcare industry holds greater expectations from the budget, right from affordability and accessibility to quality enhancements and more research and development.

Read more here

The travel industry is hoping for infrastructure status, rationalisation in Goods and Services Tax, modifications to Leave Travel Allowance (LTA), and incentives to boost local destinations from Budget 2025.

The infrastructure status for the hospitality industry will increase branded hotel supply at lower costs, said Aashish Gupta, Consulting CEO, Federation of Associations in Indian Tourism and Hospitality (FAITH). Read more.

The government is expected to announce significant measures in the 2024-25 Union Budget to promote investments in renewable energy. Experts predict policies including viability gap funding, incentive schemes, and tax concessions to boost the clean energy sector.

Additionally, there may be a focus on battery storage, hydrogen purchase obligations, and tax reforms to support green hydrogen projects. These measures aim to streamline investment and encourage growth in renewable energy infrastructure.

After the all-party meeting at the Parliament, NCP leader Praful Patel says, "These are formalities, such meetings are called before every session... All parties have given their suggestions on the budget session. Many parties have raised the issues of their respective states. What I have suggested is that the session should run smoothly without any interruptions, which has become a tradition now to interrupt and create chaos. All the matters should be discussed and debated, but peacefully... No discussion was held regarding the post of deputy speaker. I think the govt should call a different meeting for this issue in which the govt and opposition sit together and discuss..."

The Economic Survey is scheduled for presentation on July 22, one day before the full Budget for 2024-25. This crucial document will highlight key economic indicators, including the forecast for real GDP growth in the current financial year.

Moneycontrol highlights key aspects to monitor in these documents overseen by India's Chief Economic Advisor, V Anantha Nageswaran. Read more here.

Individual taxpayers are primarily requesting a revision of income tax slab rates and an increase in Section 80C tax deduction benefits, which currently allow a Rs 1.5 lakh reduction in taxable income for specific investments and expenditures. The limit, last reviewed in 2014 by the NDA government, has not been changed since, leading to widespread anticipation of an increase this year.

"The all-party meeting is a regular process. It happens in the leadership of Speaker. The CM joined, he made the history to go to home of Leader of Opposition to invite him. But Chief Whip had joined. Everyone assured that the government will function well," says Odisha Health Minister Mukesh Mahaling on all-party meeting.

• Disability rights activists expect a substantial financial support in the upcoming budget to address the needs of persons with disabilities to ensure their development.
• Arman Ali, executive director of the National Centre for Promotion of Employment for Disabled People, stressed the need for earmarking budgets under central and state schemes across different ministries to ensure targeted funding for disability inclusion.
• This, he believes, would address the diverse needs of persons with disabilities and ensure adequate support across multiple sectors.
• Ali also highlighted the urgent need for allocations to improve accessible infrastructure, including community hospitals, primary health centres, district hospitals, and sub-district hospitals.

In the all-party meeting, Congress MP Gaurav Gogoi raised the issues of NEET, alleged misuse of central agencies like ED, CBI and Deputy Speaker post. Samajwadi Party MP Ram Gopal Yadav raised the issue of nameplates on food shops on the Kanwar route in Uttar Pradesh: ANI Sources

YSRCP leader demanded special category status for AP at all-party meeting; TDP leader kept quiet on matter: Cong leader Ramesh

JD(U) demands special category status for Bihar at all-party meet ahead of Parliament session: Cong's Jairam Ramesh

In all-party meeting, Congress seeks Lok Sabha Dy Speaker's post for opposition, raises NEET issue: Sources

• With Finance Minister Nirmala Sitharaman gearing up to present the first Budget of the Modi 3.0 government, industry players expect that the government would come out with proposals to boost the rural economy and earmark adequate funds for agri-infrastructure development.
• The government has a capital expenditure target of Rs 11.1 lakh crore in the Interim Budget Estimate (IBE), said Ashish Modani, Icra's senior vice president and co-group head - corporate ratings.
• He said against the embedded growth target of 17.1 percent for FY2025 (over the preceding fiscal), the government's capital expenditure declined by 14.4 percent on a year-over-year basis to Rs 1.4 lakh crore in April-May FY25 amid a volatile monthly trend.

• Delhi Finance Minister Atishi has demanded Rs 10,000 crore from the Centre for infrastructure development, claiming the city government got nothing in return over the past year despite its income tax contribution of Rs 2 lakh crore.
• Delhi also provided Rs 25,000 crore as central GST to the pool of taxes, the minister said during a press conference here.
• Ahead of the presentation of the Centre's annual budget, Atishi batted for release of more money to Delhi, saying it could be spent on infrastructure development in road, transport and power sectors as well as to beautify the city.

Union Ministers JP Nadda, Rajnath Singh and Kiren Rijiju among several other leaders are present to attend all-party meeting called by the government ahead of the Monsoon session.

The upcoming Union Budget is anticipated to establish a robust framework for India's economic, infrastructure, and social advancement over the next decade. It is poised to introduce significant reform measures and a forward-looking growth strategy, aiming to bolster and solidify the 'India growth story'. With the newly formed NDA 3.0 government, there is an expectation of expedited reforms to accelerate progress, marking this budget as pivotal in setting the trajectory for future development. Read the report here.

• Cybersecurity stakeholders anticipate that the 2018 Union Budget would contain steps to improve the safety of the nation's digital domain through more funding and incentives, given that India is trying to adopt artificial intelligence quickly.
• With India looking to embrace artificial intelligence rapidly, cybersecurity players expect that the upcoming Union Budget will include measures to boost safety of the countr.y's digital space through further allocation of funds and incentives

• Ahead of the Budget, experts from the healthcare sector have emphasised the need for increased government spending, improved infrastructure, and enhanced innovation to build a robust healthcare system in India.
• Apart from that, the Indian healthcare industry holds greater expectations from the Budget, right from affordability and accessibility to quality enhancements and more research and development.

Finance Ministers often face the challenge that what they provide through one hand is often offset by measures taken with the other. Expectations for the upcoming Budget include revised tax slabs and benefits for the middle class. However, there is also concern that the government may seek to offset these benefits by imposing higher taxes on cigarettes and potentially offering no relief for the gaming sector. Read more.

• Former finance minister Yashwant Sinha has said that the Union Budget should focus on taming inflation and accelerating economic growth.
• Sinha emphasised that GDP should grow at 8 per cent to eradicate poverty in the country.
• “Budget should talk about addressing the issues of inflation and accelerating growth,” said Sinha who was finance minister in the Vajpayee government.

• Former finance minister Yashwant Sinha has said that the Union Budget should focus on taming inflation and accelerating economic growth.
• Sinha emphasised that GDP should grow at 8 per cent to eradicate poverty in the country.
• “Budget should talk about addressing the issues of inflation and accelerating growth,” said Sinha who was finance minister in the Vajpayee government.

• The finance ministry in the forthcoming Union Budget needs to double the loan limit to Rs 20 lakh under the MUDRA Yojana, and expand the credit guarantee cover for unsecured loans for MSMEs from Rs 2 crore to Rs 5 crore.
• MSMEs also want incentives from the government to help them sell products globally.
• On expectations from the Budget, Navin Saini, chief business officer (Retail & MSME), Arka Fincap said the government will continue its agenda to provide a strong foundation for MSMEs, bolstering their growth.

With Budget 2024 less than a week away, taxpayers are eagerly anticipating revisions and amendments from Finance Minister Nirmala Sitharaman. This budget holds significant weight as the first one following the general election, burdened with numerous and sometimes unrealistic expectations.

One of the most eagerly awaited reforms is a comprehensive overhaul of the capital gains tax regime. This is a top priority for corporations, individuals, and various stakeholders because the current regime has evolved over the years, resulting in a complex system with numerous sub-categories for taxing different types of capital assets based on factors such as holding period, acquisition method, currency used, and historical reorganization involvement. More here.

• The US-India Strategic Partnership Forum has urged Union Finance Minister Nirmala Sitharaman to ensure a stable and predictable tax environment as she prepares for her annual Budget later this month.
• The US-India Tax Forum, a dedicated Tax Policy Forum of the US-India Strategic Partnership Forum (USISPF), said this in a set of recommendations to Sitharaman.
• In a press release by USISPF, the tax forum said that a stable and predictable tax environment is imperative to boost investment sentiment across sectors.
• "The industry eagerly anticipates the Union Budget 2024-25, the first budget of the re-elected Government, which is expected to introduce measures that will stimulate growth across sectors," it said.

• Nomura predicts the government to lower its FY25 fiscal deficit target to 5 percent of the GDP, down from the 5.1 percent announced in the interim Budget.
• "Despite the increased financial demands of the two key allies (estimated to be around 0.2 percent of GDP in FY25), we expect the government to use the space afforded by higher RBI dividend (~0.4 percent of GDP) and lower FY24 fiscal deficit (~0.2 percent of GDP)," Nomura stated.

- Assocham has suggested structural reforms in the agriculture sector to enhance productivity, market access, and income opportunities for farmers.

- It also suggested promoting contract farming, investing in agri-infrastructure, facilitating value chain integration, and encouraging diversification into high-value crops.

In efforts to alleviate the impact of soaring fuel costs, the aviation sector has proposed tax deductions and rationalizations in its budget recommendations to enhance profitability. Additionally, the industry is advocating for airports to be classified under priority sector lending. India, ranking as the third-largest aviation market globally after the US and China, witnessed a significant rise in domestic air travelers, reaching 4.2 lakh daily in the fiscal year 2023-24, up from 1.85 lakh in 2014. Despite robust growth, profitability within the sector remains a concern. Read more.

Gunjan Prabhakaran, Partner & Leader, Indirect Tax, BDO India shared views and speculations on pre-budget expectations from SEZ perspective. She said, the market expects union budget to provide clarity on the future of SEZ law (e.g. continuation of present SEZ Act or introduction of proposed DESH bill) specially in the context of the first 100 days plan of MOC with respect to changes in SEZ law (NFE, payment of input taxes rather than Customs duty on DTA supplies by SEZ, etc.) and the steps to generate economies of scale.

Gaura Sen Gupta, chief economist, IDFC First Bank says, the government's financial surplus has increased dramatically as a result of the RBI dividend. With a significantly lower H1FY25 calendar than anticipated, the Center has already lowered borrowings through Treasury bills.Despite a little increase in issuance in H2FY25, the total amount of T-bills issued for the year is probably closer to Rs 12000 crore. We forecast a 5 percent GDP fiscal deficit, which means we may cut net G-Sec (government security) issuance by Rs 33,000 crore to Rs 10.2 lakh crore.

The upcoming Union budget is likely to keep the fertiliser subsidy at approximately Rs 1.64 lakh crore as estimated in the interim financial statement of the government, which is a significant reduction of over 13 percent from the previous year’s expenditure of Rs 1.89 lakh crore, a government official said.

“The fertiliser subsidy allocation is likely to remain more or less the same in the Union budget as urea imports will be significantly lower this year with a boost in nano urea, and the global input prices are expected to be stable,” the official told Moneycontrol on condition of anonymity. Read more here.

The government is likely to introduce amendments to Banking Regulation Act 1949 and other laws to push banking sector reforms during the upcoming Budget session.

Apart from this, amendments in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 are needed for privatisation of public sector banks, sources said.

These Acts led to the nationalisation of banks in two phases and provisions of these laws have to be changed for the privatisation of banks, they said. (PTI)

• Finance Minister Nirmala Sitharaman is preparing to unveil her seventh complete budget on July 23. Known for her focus on fiscal discipline, substantial capital investment, and initiatives to promote self-reliance and bolster manufacturing, Sitharaman's past budgets have reflected these priorities.
• The interim budget she presented in February defied expectations of populist measures typically seen in pre-election budgets, opting instead for a more restrained approach.

• Ahead of the budget session, the government has called for an all-party meeting today. Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget in Parliament on Tuesday, preceded by the tabling of the Economic Survey on Monday.
• Parliamentary Affairs Minister Kiren Rijiju will chair the meeting with floor leaders of all parties to discuss the agenda and issues for the upcoming session.