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Importance and Impact of Yearly Union Budget
According to the Constitution of India's Article 112, presenting a budget at the Parliament is mandatory before starting a financial year. Popularly known as the Union Budget, it is issued for the upcoming fiscal year. Read more to understand the importance of the Union Budget and how it impacts various aspects of our lives.
The Union Budget for FY 2024-25 will be presented on 1st February 2024 and will highlight how some of the key sectors in India will be impacted by it.
Please go through the blog to understand the importance of the Union Budget and how it impacts various aspects of our lives.
The Union Budget aims to foster social justice and equality while promoting swift and balanced economic growth in our country. Below are some key points that highlight the importance of the Union Budget in India:
The Union Budget monitors and controls the charges and prices of goods. It does so by managing economic fluctuations and making necessary adjustments in the three fundamental sectors of the economy.
In times of inflation, surplus budget policies are implemented, while strategies for managing deficit budgets are developed during deflation periods. This way, the definition of budgeting works to maintain stability in trade and prices based on current economic conditions.
It also aims to eliminate poverty and create job opportunities. With this budget, the government tries to create employment in India through various new schemes and tries to allocate more funds to the existing government schemes.
It ensures that every individual in our country has access to essentials like food, shelter, clothing, as well as medical and educational services.
The Union Budget ensures the efficient allocation of resources to maximise profit and enhance public welfare. With this budget, the government efficiently distributes available resources to various departments like education, healthcare, and infrastructure of India.
It can lead to changes in our country's direct and indirect taxes, affecting income tax rates and tax brackets. This budget is expected to outline crucial aspects of taxation and how we plan to manage it effectively in the upcoming fiscal year.
Also Read - 9 Useful Income Tax Saving Tips For Small Businesses
A Union Budget of a country comprises of two major components:
It contains information on the government's capital expenditures and capital income. The funds spent by India's government on healthcare, infrastructure, etc., come under capital expenditures.
Additionally, capital receipts consist of details of various loans that the government takes from the public or RBI.
It is a sum of all the government's revenue receipts and revenue expenditures. The revenue receipts include revenue collected from the Indian government in the form of taxes or different types of fees on services.
Moreover, revenue expenditures include the amount spent by the government that does not lead to the creation of any fixed assets like subsidies, pensions, interest on loans, etc.
Also Read - What are the Tax Benefits of MSME in 2024?
The importance of the Union Budget is paramount in enhancing the economic growth of India. It has a crucial impact on various sectors of our country. Hence, being informed about the Union Budget 2024 is vital to enjoy the various benefits that it brings along.
This blog provides informational content on tax benefits and rules based on the current provisions of the Income Tax Act of India, 1961. The interpretations are subject to change as per amendments made by the Government of India. Applicable rates of GST and cess will be as per the current regulations. Readers must seek professional advice for accurate and up-to-date information.
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