The NDA government, led by Prime Minister Narendra Modi, has appointed Nirmala Sitharaman as the Finance Minister. She is one of the few women in the Cabinet and has now entered her third term under Prime Minister Modi.
Importance of the Full Budget for 2024-25
The presentation of the full Budget for the fiscal year 2024-25 is considered to be a significant event to watch out for. This budget will outline the government’s financial plans and policies for the coming year.
Special Session of Parliament
A special session of the Parliament is scheduled to begin on June 18. During this session, decisions will be made regarding the date for the presentation of the Union Budget, as well as the announcement of certain schemes.
Industry Consultations and Fiscal Deficit Target
The Ministry of Finance has already started working on the Budget and is expected to engage in industry consultations. One key aspect to observe is whether the government will adhere to the fiscal deficit target of 5.1 percent of GDP, as announced in the Interim Budget presented in February. This is particularly interesting given the recent announcement by the Reserve Bank of India (RBI) that it will provide a dividend of Rs 2.1 trillion to the central government.
Resolution of Controversy Surrounding the Income Tax Act Amendment
The Finance Ministry is expected to address the controversy surrounding the amendment to the Income Tax Act in the FY24 Budget. This amendment mandates that large companies must pay micro, small, or medium enterprises within 45 days, or else they cannot deduct the expense from their taxable income. There has been discussion about potentially reconsidering this amendment, and it will be interesting to see how the Finance Ministry handles this matter.
Other Issues for the Finance Ministry
In addition to the aforementioned matters, the Finance Ministry has various other issues to address. These include the long-pending strategic sale of IDBI Bank, Shipping Corporation, and NMDC, as well as resolving GST issues and other related matters.