New Delhi, January 31, 2024.

In order to win over voters with fresh spending proposals and prevent a rise in the fiscal deficit, Prime Minister Narendra Modi could use this Interim budget to hit two birds with one stone before the Lok Sabha elections.

Swati Saxena, Founder & CEO of 4thoughtsfinance, a wealth management firm, anticipates positive changes in the upcoming budget, emphasizing potential relief in personal income taxes. The expectation includes a reduction in the maximum tax rate to enhance individuals' purchasing power. A key focus is on ESOPs (Employee Stock Ownership Plans), calling for adjustments to ensure equitable benefits for employees participating in the company's growth. Saxena also highlights the need for tax exemptions to encourage reinvestment in startups, proposing measures to boost the sector's appeal. Additionally, she advocates for better alignment between Dividend Distribution Tax (DDT) and Long-Term Capital Gains on equity to enhance liquidity and promote healthy economic growth.

Amit Mohan, President – Logistics & Infrastructure, Kotak Mahindra Bank- “The upcoming Union Budget can be a directional budget for many core areas even though it is a “vote on account” before the general elections. The government is expected to ensure continuity in policies and investment in strategic areas to spur the domestic demand while managing the inflation. The focus is likely to be on infrastructure, healthcare and green and sustainable energy. The government may continue to take concrete steps towards an integrated logistics and infrastructure model while the digital infra can get a boost to unlock the true potential of a connected nation. Fiscal consolidation will be a priority given the flexibility and buoyancy provided by the high tax collections and the 7.6% GDP growth last quarter,”

Daniel Mazon, Vice Chairman & Managing Director, Philips Indian Subcontinent said, “India has made rapid strides in the adoption of digital technologies in healthcare in the wake of Covid 19 pandemic. We have built on those foundations and taken steps that will provide tier-2 and 3 cities with access to quality healthcare through technology interventions. Greater investments in healthcare, as a percentage of GDP, will not only lower the cost of access to care but will also strengthen collaborations between the public and private players. The healthcare manufacturing ecosystem in India has also witnessed good advances as a result of the Government’s schemes such as PLI. Building on similar initiatives, we see potential for India to become a part of global healthcare landscape through the Government’s support in setting up Research & Development, Component and Software Development centres in the country. We look forward to these measures that will strengthen the healthcare outlook as we anticipate the 2024 Budget.”