A few months before the 2024 Lok Sabha elections, on February 1, 2024, Finance Minister Nirmala Sitharaman is scheduled to deliver the interim budget of the Narendra Modi administration. What will be the Union Budget 2024's main focus? As the budget will be presented for vote-on-account, no significant announcements will be made. The announcement of the election results will precede the release of the unified budget for 2024.




Will there be tax cuts and other incentives in the budget to encourage consumer spending and increase foot traffic to stores? Experts predict that the Union Budget of 2024 will provide tax benefits and incentives to stimulate consumer spending and increase foot traffic in stores. Raising the personal income tax slabs, declaring short-term tax vacations, and offering incentives for housing, dining out, travel, and car purchases are among of the suggestions.

What industry experts expect out of Union Budget 2024

The swift rebound in retail and consumer spending thus far has been driven by pent-up demand and hordes of retaliation consumers. But inflation is still a thorn that keeps popping, threatening to sabotage the recovery. Increased standard deductions and higher personal income tax slabs help counteract inflation and provide shoppers with more disposable income, according to Rosemoore director Ridhima Kansal.

She also mentioned that short-term tax holidays and incentives related to housing, dining out, vacation, and car purchases can stimulate consumer spending in a number of important areas.


"Last quarter, GST made a monthly contribution to the kitty of over ₹1.5 lakh crore, demonstrating the resilience of consumption." Still, we are a long way from pre-pandemic highs. In order to keep working capital from being held up, procedures like computerized GST bills might enable quicker reimbursements, according to Tejpal Singh Shekhawat, founder & CEO of Kalyanam Furniture.

Further steps to make the regime more consumer-friendly include putting petroleum under the GST's purview and harmonizing peak slab rates, Tejpal said.

Towards the conclusion of the previous year, retail inflation exceeded the 6% threshold. There is little money left over after paying for EMIs, groceries, and gasoline that households must spend on leisure or discretionary purchases. Given the fiscal problems, reductions in income tax rates seem improbable.


On the other hand, middle-class taxpayers can benefit from higher leave travel allowance limitations and the standard deduction. According to Raghunandan Saraf, the founder and CEO of Saraf Furniture, offering greater tax benefits on first-time home loans and electric vehicles can help encourage significant purchasing decisions and multiplyers.