New Delhi,
February 1, 2024
Sandeep Dhand (Ludhiana)
In a much-anticipated move, Finance Minister Nirmala Sitharaman presented the interim budget for 2024 today, marking the second interim budget in the 10-year tenure of the Narendra Modi government. Despite expectations of an increase in tax rate exemptions, taxpayers were left disappointed as the government chose to maintain the existing tax rates, capping at 7 lakhs.
The interim budget holds significance as it grants the government the authority to spend until the new government passes the entire budget. This also allows the incoming government to make decisions about the complete budget through the interim budget, providing a degree of flexibility. In case the government faces delays in presenting the full budget post-election results, it is required to seek approval from the House for expenditures.
Traditionally, interim budgets have served as a platform for governments to make new announcements. In 2019, during the first interim budget of the Modi government’s tenure, significant initiatives such as the Pradhan Mantri-Kisan Samman Nidhi Yojana were introduced. Additionally, key decisions were made regarding tax exemption and standard deduction, making it a populist budget that aimed to attract a new beneficiary class.
The absence of changes in tax rates in the current interim budget raises questions about the government’s approach and its plans for addressing economic challenges. While taxpayers may have hoped for relief, it remains to be seen if the Modi government’s second tenure will witness a populist budget similar to its first interim budget.
It’s important to note that the interim budget allows for the introduction of new policies and reforms, but the incoming government retains the freedom to alter these decisions when presenting the full budget. As the nation awaits the outcome of the upcoming general elections, the budget’s impact on the economy and the financial landscape will undoubtedly be a subject of keen interest and scrutiny.
In the coming weeks, experts and analysts will delve into the details of the interim budget, assessing its implications on various sectors and industries. The government’s economic strategy and its commitment to addressing the needs of the common citizens will be closely scrutinized as the country navigates through the challenges and opportunities that lie ahead.