In the recent presentation of the Interim Union Budget for 2024-2025, the Finance and Corporate Affairs Minister highlighted an 11.1% increase in the capital expenditure outlay, amounting to ₹11,11,111 crore, which constitutes 3.4% of the GDP. This increment builds upon previous years’ efforts aimed at significantly enhancing capital expenditure, resulting in substantial economic growth and employment generation.
Based on the First Advance Estimates of National Income for FY 2023-24, India’s Real GDP is forecasted to grow by 7.3%, consistent with the revised projections by institutions such as the RBI and the IMF. Despite global economic challenges, India has maintained resilient macro-economic fundamentals, leading to increased global confidence in its economic potential.Various international agencies project India’s growth between 6.1% to 6.7% for the fiscal year 2024-25, underlining its position as a key contributor to global economic growth. The buoyancy in economic activity has positively impacted revenue collections, with notable achievements in GST collections.
The budget also outlines provisions for interest-free loans for capital expenditure to states, along with fiscal consolidation efforts aiming to reduce the fiscal deficit to 5.1% of GDP by 2024-25. Additionally, measures are proposed to manage gross and net market borrowings through dated securities.
To improve taxpayer services and ease of doing business, outstanding direct tax demands up to certain amounts and for specific periods are proposed to be withdrawn. This initiative is expected to benefit a significant number of taxpayers, fostering a conducive tax environment.
Over the past decade, direct tax collections have witnessed a substantial increase, accompanied by enhancements in tax-payer services and simplification of tax return filing procedures. The introduction of a new tax regime has resulted in reduced tax liabilities for certain income brackets and corporate entities, aimed at stimulating economic growth.
The implementation of Goods and Services Tax (GST) has streamlined the indirect tax system, reducing compliance burdens and benefiting both industry and consumers. Notable achievements include an expansion of the tax base, increase in monthly gross GST collections, and improvements in customs procedures to facilitate international trade.
Source: ACB Times
Part B
- No changes in direct or indirect tax rates proposed.
- Extension of certain tax benefits for startups, sovereign wealth funds, and IFC units by one year.
- Withdrawal of outstanding direct tax demands up to ₹25,000 for pre-2010 and ₹10,000 for 2010-2014.
- Acknowledgment of increased direct tax collections and reforms implemented.
- Recognition of reduced compliance burden and positive impact of GST on trade and industry.
To improve taxpayer services and ease of doing business, outstanding direct tax demands up to certain amounts and for specific periods are proposed to be withdrawn. This initiative is expected to benefit a significant number of taxpayers, fostering a conducive tax environment.
Over the past decade, direct tax collections have witnessed a substantial increase, accompanied by enhancements in tax-payer services and simplification of tax return filing procedures. The introduction of a new tax regime has resulted in reduced tax liabilities for certain income brackets and corporate entities, aimed at stimulating economic growth.
The implementation of Goods and Services Tax (GST) has streamlined the indirect tax system, reducing compliance burdens and benefiting both industry and consumers. Notable achievements include an expansion of the tax base, increase in monthly gross GST collections, and improvements in customs procedures to facilitate international trade.
Source: ACB Times
