Budget 2024: 10 expectation from upcoming budget



With the 2024 General Elections approaching, all eyes will be on the Budget 2024, which is anticipated to be more of a Vote on Account than a whole Budget. The whole budget for the upcoming fiscal year, or FY25, will be unveiled in July following the election of a new government.

Analysts predict that the administration won't make any significant announcements regarding the budget in February.

Speaking at the CII Global Economic Policy Forum 2023 Summit on December 7, Union Finance Minister Nirmala Sitharaman stated that it is doubtful that any "spectacular announcements" will be made in the Union Budget 2024, which is set to be presented on February 1.


Sunil Subramaniam, MD and CEO, Sundaram Mutual Fund:

Since the election commission won't allow any significant announcements due to the upcoming general elections, the budget will essentially be a report card and a vote on account. Having stated that, the financial figures should match the projected budget.


Satish Menon, Executive Director, Geojit Financial Services:

According to what we understand, the February budget will serve as a provisional one and the final one would be released following the general election.

As a result, it is too soon to determine the precise composition of the Budget. But we expect the present administration to stay in power and carry on with its progressive budget, which is in line with the reforming government's usual aim.


Initiatives aimed at promoting growth and providing subsidies during the epidemic have resulted in a rise in the government's fiscal imbalance. Therefore, reducing the deficit is the goal.

We anticipate that the government will prioritize growth at the same time.

We anticipate a rise in government spending on infrastructure and new efforts to support manufacturing in India.




Yogesh Patil, Chief Investment Officer -Equity, LIC Mutual Fund:

To spur economic growth, the administration has already launched a number of initiatives, including production-linked incentives (PLI).

Strong economic growth, rising tax receipts, and a number of macroeconomic indicators point to better times ahead. Already, the reforms that have been proposed have laid the groundwork for our economy's next phase of expansion.


We don't anticipate any significant pronouncements from the administration in the Vote on Account that is due before to the Lok Sabha elections.

The Finance Minister affirmed that because of the upcoming elections, the February 2024 budget will only be a vote on account.


Sandeep Raina, Executive Vice President- Research, Nuvama Professional Clients Group:

It is unlikely that the forthcoming Budget would undergo major modifications as the election draws near. But in keeping with the previous trend, we expect a pro-investment Budget to be introduced after the election and the establishment of the new government.


Ashutosh Tiwari, Managing Director and Head of Institutional Equities, Equirus:

The budget is expected to be balanced the next year due to the central election in 2024. In addition to growth direction, we think it will include populist initiatives that target the rural and lower classes of society that have been suffering since the Covid pandemic.

Given that the BJP's recent state election victories are largely attributed to women's welfare programs like MP's Ladli Behna, it is likely that the government would include additional central programs pertaining to women's welfare in the 2024 Budget.


The government has been very explicit about its growth plans, whether they take the shape of developing EV or electronics value chains, localizing imports, or improving road and rail connectivity.


Gautam Duggad, Head of Research- Institutional Equities, Motilal Oswal Financial Services:

We anticipate that the Government of India (GoI) will stick to its fiscal consolidation course and that it will declare its intention to reduce the budget deficit from 5.9% of GDP in FY24 to 5.2% of GDP in FY25, a difference of 70 basis points.

Given that general elections are scheduled for April/May 2024, the Government of India might propose some populist policies aimed at the middle class and farmers. Even though the likelihood of doing too much has decreased following the recent elections, an announcement along these lines may yet be made.


The market will be watching for any tax-related policies that could encourage consumers to spend more money. It will also be examining the fiscal capital expenditure increase that has been exceptionally robust over the last three to four years.


Ajit Banerjee, Chief Investment Officer of Shriram Life Insurance Company:

The Finance Minister will first present the Vote on Account to Parliament in light of the country's upcoming general elections in May and June 2024. This vote serves as an advance payment to the government from the Consolidated Fund of India to cover short-term expenditure needs until the new, complete budget is presented.

A comprehensive Union Budget will be drafted after the general elections and the new government takes office.


Consequently, we can anticipate that the government will look for funding in the Vote on Account to maintain its current welfare programs or to introduce new ones that are more geared toward the Aam-Aadmi, or rural population. These programs could help provide some extra disposable income to the rural masses, as their consumption is still falling short of that of urban areas.

Sonam Udasi, Senior Fund Manager, Tata Mutual Fund:

We anticipate that the Budget 2024 will stick to its predetermined course of aiming for a budgetary deficit. Our opinion is that there should be an unwavering focus on developing infrastructure and taking steps to increase the competitiveness of Indian industry.

This government has consistently avoided populism in the near term and concentrated on long-term gains in productivity. We believe that this would go on.


Amitabh Mohanty, MD and CEO, JM Financial Asset Management:

It could not always be as straightforward as a vote on account. Prior to the general elections, the government used to offer a final budget that was more thorough than a mere vote on account.

A populist budget is not anticipated, based on historical trends.


Additionally, we don't think the government will make any significant announcements prior to the elections.

They will make it clear that they want to stick to their course of prudent fiscal management, continuing to prioritize investments in social infrastructure and infrastructure.
We might anticipate some alleviation in the area of personal income tax. The rates and tax slabs may be somewhat rationalized.

The market will embrace and the economy will benefit from a budget that largely follows historical norms.



Aditi Nayar, Chief Economist, Head of Research and Outreach, ICRA:

No significant news are anticipated in the Vote on Account. Aiming for a 5.2% GDP fiscal deficit would put the deficit midway between the medium-term goal and the FY24 Budget forecast.