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Tag: Union Budget 2024

  • Budget 2024: FM Nirmala Sitharaman Chairs Pre-Budget Meeting With State, UT Finance Ministers | Personal Finance News

    New Delhi: Union Finance Minister Nirmala Sitharaman chaired a pre-budget meeting with the Finance Ministers of all States and Union Territories on Saturday morning.The Ministry of Finance and Corporate Affairs organised a Pre-Budget Meeting with the Finance MInisters of all States and Union Territories with Legislatures. The purpose of the meeting was to gather suggestions for the upcoming Union Budget 2024-25.

    Ministers of State and other stakeholders are attending the meeting. Visuals showed Uttar Pradesh Finance Minister Suresh Kumar Khanna and Rajasthan Finance Minister Diya Kumari at the Bharat Mandapam venue before the meeting started this morning. (Also Read: Beware! Claiming False HRA While Filing ITR Could Cost You THIS Much: Check Here)

    The Union Finance Ministry had begun consultations on the budget a few days ago with different stakeholders of economy. Sitharaman has met economists, finance and capital market experts and industry bodies. (Also Read: Govt Imposes Stock Limits On Traders To Keep Prices Of Pulses In Check)

    Sitharaman chaired the first pre-Budget consultations with leading economists on June 19. The meeting was attended by Union Minister of State for Finance Pankaj Chaudhary, the finance secretary, secretaries of the departments of economic affairs, revenue, financial services and corporate affairs and the chief economic adviser.

    Meanwhile, Sitharaman will also chair the 53rd Goods and Services Tax (GST) Council Meeting scheduled in the second half of the day. This is the first meeting of the GST council after the formation of the new government.

    State finance ministers will also be present at the 53rd meeting of the Goods and Services Tax Council. As is the norm, the GST Council gets together to discuss issues pertaining to the GST regime, such as tax rates, modifications to policies, and administrative challenges.

    The Council is a key player in shaping India’s indirect tax system, making sure that it facilitates company and citizen tax relief while also being in line with the country’s economic objectives. The information on the agenda of Council meeting is not yet in public domain.

    However, the decisions and recommendations arising from the 53rd GST Council meeting will be closely watched by various stakeholders, including businesses, policymakers, and the general public, as they have the potential to influence taxation, trade, and overall dynamics.

    Goods and Services Tax was introduced in the country with effect from July 1, 2017, and states were assured compensation for loss of any revenue arising on account of the implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017 for five years. Meanwhile, preparation has commenced for the Union Budget 2024-25, the first for the third term of the Prime Minister Narendra Modi-led National Democratic Alliance government. (With ANI Inputs)

  • FM Sitharaman On Strong Wicket As Modi 3.0 Gears Up To Present Full Budget | Economy News

    New Delhi: Prime Minister Narendra Modi has sent a clear message of continuity in the government’s economic policy with the re-appointment of Nirmala Sitharaman as Finance Minister. 

    Sitharaman’s return comes on the back of a successful track record with the Indian economy clocking a robust 8.2 per cent growth in 2023-24, which is the fastest among the world’s major economies, and inflation coming down to below 5 per cent.

    During her tenure as Finance Minister, the fiscal deficit has also been reduced from more than 9 per cent of GDP in 2020-21 to the targeted level of 5.1 per cent for 2024-25. This has strengthened the macroeconomic fundamentals of the economy. S&P Global Rating raised India’s sovereign rating outlook to ‘positive’ from ‘stable’, citing the country’s improving finances and strong economic growth.

    After having presented an interim budget ahead of the Lok Sabha polls, Sitharaman now faces the challenge of presenting a full budget that ensures the economy continues on the high growth trajectory and creates more jobs while at the same time keeping in mind the aspirations of the coalition partners of the Modi 3.0.

    There are some apprehensions that the fiscal demands of the coalition partners may lead to a diversion of economic resources from investments in infrastructure projects that spur growth to social welfare schemes and higher allocation to states.

    However, given the low fiscal deficit, the hefty Rs 2.11 lakh crore dividend from the RBI and the buoyancy in taxes, the Finance Minister has a lot of headroom for pushing ahead with policies aimed at accelerating growth.

    As part of the next-generation economic reforms, the government was also planning to rationalise GST by reducing the number of tax slabs from four to three in order to make revenue collection and compliance easier. However, this may now have to be put on the backburner as tweaking GST rates on semi-essential items which are taxed at 12 per cent or 18 per cent could lead to an additional tax burden on essential items, which are taxed at a lower 5 per cent rate.

    Some of the crucial economic reforms such as making it easier for businesses to hire and fire labour to ensure a higher level of productivity to accelerate growth and generate more jobs in the long run may also have to wait.