With the Narendra Modi-led NDA government sworn in, India is awaiting the announcement of the full Budget for FY25. While there is no official announcement on the date of the presentation of the Union Budget, media reports suggested that Finance Minister Nirmala Sitharaman will table the Budget in the third week of July, with the commencement of the Monsoon Session of the Parliament. The Monsoon Session is set to begin on July 22, per sources. The session is likely to continue until August 9.

Meanwhile, the finance minister will hold a pre-Budget consultation with industry stakeholders on June 20. This will be the first Union Budget under Modi 3.0 and Nirmala Sitharaman is all set to make history with this as she is on track to become the first finance minister to deliver seven consecutive Budget presentations, comprising six complete budgets and one interim, surpassing Morarji Desai’s record in this regard.

FM Nirmala Sitharaman Budget 2024: Live Updates

Date: June 20th

Economists Emphasize Fiscal Prudence, Capex, and Job Creation

Economists advised focusing on fiscal discipline, enhancing capital expenditure, creating jobs, and containing inflation, while ensuring social welfare provisions in the upcoming Budget for 2024-25.

Government Announces Varied MSP Increases for Pulses and Oilseeds; Kharif Rice Sees Modest 5.4% Hike

The Cabinet has approved MSP increases ranging from 1.4% to 12.7% for 14 crops in the upcoming 2024-25 kharif season. Specifically, the MSP for paddy, a key summer crop, has been raised by 5.35% to Rs 2,300/quintal, compared to Rs 2,183/quintal in the previous season, reflecting a more conservative adjustment amidst current market conditions.

Date: June 19th

Who is Slated to Present the Union Budget?

Nirmala Sitharaman will present the Union Budget for FY25, marking her seventh consecutive Budget presentation, surpassing Morarji Desai's record. Her last presentation was the Interim Budget in February 2024, ahead of the elections in April and May.

Is There Room for Further Surge in Infra Stocks?

Despite market volatility leading up to the Budget, infrastructure stocks have been performing well, driven by expectations of a significant increase in sectoral outlay to stimulate growth.

Consumption Boost a Need

Official date is yet to be announced, but expectations are high for measures to boost consumption. Furthermore, on-time monsoon and higher farm income signal a potential rise in consumption. Also, there will be an increased public capex allocation in rural areas aimed at boosting consumption and aiding economic recovery, with improved monsoon expected to curb inflation.

Record Dividend Payout by RBI

Reserve Bank of India pays a record Rs 2.1 trillion dividend for FY24, surpassing the Rs 1 trillion estimates. Also, RBI’s net interest income surged to Rs 2.1 trillion by March, up from Rs 87,420 crore the previous year.

July 22 Likely Date for Budget 2024 Presentation Amid Monsoon Session

Finance Minister Nirmala Sitharaman to hold pre-budget discussions on July 20. Also, the full budget for FY 2024-2025 is expected to be presented on July 22. Also, the presentation aligns with the commencement of the Parliament's Monsoon Session.

Why Two Budgets This Year?

The Interim Budget on February 1 was a Vote On Account to manage expenses during the election period. With the new government in place, Finance Minister Nirmala Sitharaman will now present the full budget for FY25.

Who will Present the Union Budget 2024-2025?

Nirmala Sitharam is set to present the Union Budget, marking her seventh consecutive budget presentation, surpassing Morarji Desai's record. The last budget was an Interim Budget in February 2024, preceding the general elections.

India's GDP Grows 8.2% in FY24, Boosted by Manufacturing and Construction Sectors

India's economy expanded by 7.8% in the March quarter, raising the annual GDP growth rate to 8.2% for FY24, driven by strong performance in manufacturing and construction, despite a slowdown in key services.

'Pillar-2' Tax Regime on Cards?

India is expected to adopt the OECD’s “Pillar-2” tax regime to combat tax avoidance, effective from September 2024, following the full Budget presentation in late July.

Three Key Budget Features to Watch

Schemes: Focus on welfare and income assistance initiatives like PM Kisan Yojana.

Capex: Expected increase in capital expenditure after recent reductions.

Healthcare and Education: Likely boost in spending for these growth sectors.

India's Economic Metrics Influencing the Budget

Key metrics include inflation, GDP growth, and the fiscal deficit, all crucial for the upcoming budget announcements.

Fitch Ratings Raises India's FY25 GDP Projection to 7.2%

Fitch Ratings increased India's GDP growth forecast to 7.2%, citing a rebound in consumer spending.

WPI Inflation at a 15-Month High of 2.61% in May

WPI inflation rose to 2.61% in May due to higher food prices and manufacturing costs.

Windfall Tax on Crude Petroleum Reduced

The windfall tax on crude oil was cut to Rs 3,250 per tonne from Rs 5,200, effective June 15.

Pulse Prices to Soften

Pulse prices are expected to decrease starting in July due to imports and better kharif crops.

Exports Increase by 9% in May

Merchandise exports rose by 9.1% year-on-year in May, but the trade deficit widened due to increased imports.

Edible Oil Imports Drop by 5%

Edible oil imports fell 5% from November to May, attributed to better domestic crops and higher global prices.

CPI Inflation May Ease Further

Retail inflation is projected to drop in July and August, following a decrease to 4.75% in May.

CII President Expects 8% GDP Growth in FY25

CII President Sanjiv Puri forecasts an 8% GDP growth, supported by policy reforms and a favorable global environment.

No Proposal to Decrease Import Duties on Wheat

The government stated no current plans to reduce wheat import duties, citing sufficient stocks to meet demand.

India May Import Over 1 MT of Chana from Australia

India might import 1.1 million tonnes of chana from Australia to address domestic supply shortfalls.

IIP Growth Slows to 5% in April

Factory production growth slowed to 5% in April due to reduced manufacturing activity.

World Bank Raises India's GDP Prediction to 6.6% in FY25

The World Bank raised India's growth forecast to 6.6% for FY25, despite being lower than RBI's 7.2% projection.

States' Capital Spending Increased by a Quarter in FY24

States' capital expenditures rose by 26% in FY24, supported by the Centre's interest-free loans and strong income growth.

RBI Keeps Repo Rate Constant at 6.50%

The RBI maintained the repo rate at 6.50%, with experts predicting no rate cuts before October.

GDP Climbs 7.8% in March Quarter

India's GDP grew by 7.8% in the March quarter, with an annual growth rate of 8.2% for FY24, driven by manufacturing and construction sectors.