Budget 2024: Key Expectations from FM Nirmala Sitharaman's upcoming Budget

India's interim budget for 2024-25, set to be presented by Finance Minister Nirmala Sitharaman on February 1, is anticipated to stimulate the country's economy and offer assistance to different segments of society, such as government employees, farmers, and pensioners.

Here are some of the key announcements that are expected in the budget:

1. Salary increases for government employees: The government is expected to increase the fitment factor for government employees, which could lead to a raise in their basic salary from Rs. 18,000 to Rs. 26,000.
2. Implementation of the eighth pay commission: The government is also expected to announce the implementation of the eighth pay commission, which could benefit junior-level employees.
3. Payment of arrears of dearness allowance: The government is expected to pay the arrears of dearness allowance for the 18 months during which it was not increased due to the COVID-19 pandemic.
4. Increase in the amount of Pradhan Mantri Kisan Samman Nidhi: The budget is expected to increase the amount of Pradhan Mantri Kisan Samman Nidhi from Rs. 6,000 to Rs. 9,000 per year. The amount for female farmers is also expected to be increased to Rs. 12,000 per year.
5. Relief from double taxation on dividends: The government is expected to provide relief from double taxation on dividends, which would benefit shareholders.
6. Increase in the amount of Atal Pension Yojana: The government is expected to increase the amount of Atal Pension Yojana for workers in the unorganized sector.
7. Relief for senior citizens: The government is expected to provide relief for senior citizens by giving tax exemption on annuities from the National Pension Scheme.
8. Fiscal deficit target: The current fiscal deficit stands at 5.90%. The government aims to reduce it to 4.50% by the end of 2024. Capital expenditure is projected to reach Rs. 11.50 trillion in the upcoming fiscal year.
9. Interim budget: It is a vote-on-account, serving as a temporary budget for the initial six months of the next fiscal year. The complete budget will be unveiled after the general elections, anticipated to occur in April-May 2024.