SPEQ Research •

23'rd Jul 2024

Union Budget

The Union Budget of India, also known as the government's financial game plan for the year, gets rolled out annually by the folks in charge.

On the revenue side, it's all about taxes—like income tax, corporate tax, and GST—plus some other bits like interest and dividends. Then there's the spending side, which covers the basics: salaries, subsidies, and paying off debts. This part's more about keeping the lights on than building new stuff.

When we talk about capital budget, it's a bit more exciting. That's where they splash out on things like roads, schools, and hospitals. It's about investing in the future and making things better for everyone.

Now, let's peek at what's cooking for the Union Budget 2024-25:

1. **Tax Talk**: There's buzz about tax cuts, especially for folks making less than ?10 lakh a year. They might tweak tax rates, up the limits on what you can save, and simplify how they handle capital gains tax.

2. **Money Matters**: The plan is to keep the deficit in check, maybe even lower it a bit from last time. They're looking to borrow around ?14.1 lakh crore—sounds like a lot, but it's all part of the plan.

3. **Building Up**: They're keen to boost spending on roads, railways, and other big projects. Not a massive hike, but enough to keep things moving.

4. **Who's Winning? **: Some sectors are set to score big, like FMCG, defense, railways, and infrastructure. Companies like Mahindra & Mahindra, Hero MotoCorp, and others might see their stocks rise.

5. **Rural Focus**: They're eyeing ways to help folks in the countryside, maybe even putting a little more money in their pockets.

6. **Steady as She Goes**: No big surprises expected—more like keeping the ship steady and sticking to the game plan.

Nirmala Sitharaman's got the stage set to unveil all this on July 23, 2024. Investors and the rest of us will be tuning in to see how it all plays out.