FY 2025 Budget: The government has revealed the date of presenting the Union Budget 2024-25 which will be presented in parliament on 23 July 2024. But most of people are questioning that the government has already presented the budget for 2024 in February month so why it is presented again? So if you also have the same question related to the financial budget 2024-25 twice presentations then can read this article where we will share with you the complete answer to the confusion of the FY 2025 Budget.
The Union Finance Minister Nirmala Sitaraman took oath for the third time to take charge of the Union Finance Ministry of the government of India after the victory of BJP led NDA in Lok Sabha election 2024. Now the new union government is going to present the budget for the financial year of 2024 and 2025 on 23rd July 2024. There will be new changes and announcements by the new government. The new budget will focus on the vision of BJP and other NDA parties. So all the citizens including normal people as well as businessmen are waiting for the new Union budget 2024 as it will directly impact their business and the Indian financial system.
Why India has 2 budgets for FY25?
According to the Indian constitution, the new parliamentary session starts with the presentation of the financial budget which is presented in February month from many years. The existing Government has also introduced a financial budget in February month 2024 but it was an interim budget of 2024.
Which was presented to manage all the necessary and important financial activities in the country throughout the year without any problem. It did not include public welfare schemes and distribution of the funds for implementation of such schemes as PM Aawas Yojana and PM Kisan Yojana, but the complete Union budget of 2024 is scheduled to be presented on 23 July 2024. It will be the complete budget which will include the findings and distribution of amount for public welfare schemes.
What is the interim Budget in India?
An interim budget in India is a temporary financial statement presented by the government in election years, serving as a bridge between the existing government’s expiring term and the new government’s assumption of office. As per Article 112 of the Constitution, the government is mandated to present an annual financial statement. However, in election years, a full budget is not given due to potential leadership changes.
Instead, an interim budget is introduced, outlining estimated receipts and expenditures for a short period, usually 2-3 months, to ensure continuity of government expenses and programs. This temporary budget does not introduce new policies or initiatives and is often presented with a vote-on-account to authorize fund withdrawals from the consolidated fund of India. Once a new government takes office, a full budget is presented, outlining its comprehensive financial plans and policies for the upcoming fiscal year.
New Financial Budget 2025
The focus points of the new financial budget 2025 in India are expected to be:
Simplification of Taxation: Simplification of taxation laws and enhancement of tax compliance are expected.
Agriculture: The budget is expected to prioritize agriculture and rural India, focusing on making farmers more resilient while mitigating food inflation.
Logistics: The budget July 2024 is expected to continue its commitment to boosting the logistics sector, particularly for MSMEs.
Housing: The Union budget 2024 is expected to consider some tax sops for the housing sector, especially for middle and low-income earners.
Insurance: The budget is expected to improve tax benefits to increase insurance coverage.
Fiscal Deficit: The budget is expected to cut the fiscal deficit target to 5.0% for FY25 from 5.1% in the interim budget.
Capital Gains Tax: The budget is expected to simplify the complex capital gains tax structure.
Dividends: The budget is expected to relieve double taxation on dividends.
Foreign Investment: The budget is expected to encourage foreign investment in India.
Export Promotion: The budget is expected to include labor-intensive sectors in the Production Linked Incentives scheme to boost employment and capital infusion.
MSMEs: The budget is expected to ease capital raising and relax norms in NPA recognition by banks for MSMEs.
Employment: The budget is expected to announce an Employment Linked Incentive scheme for labor-intensive sectors.
Fiscal Prudence: The budget is expected to maintain fiscal prudence and not abandon the path of fiscal consolidation.