By Irshaad Mushtaq
A budget is the backbone of our financial stability, whether it’s on a personal or national level. It sets the framework for our income and spending.
A budget fundamentally represents our income and spending. This concept applies to both personal finance and national finance. At the national level, a budget outlines the country’s income sources and expenditures. It details how much money will be allocated to various sectors such as defense, agriculture, education, and infrastructure each year. Usually, budget announcements are made in February.
However, this year, an interim budget was introduced due to the upcoming election, and the full Union budget was announced on July 24th.
The government generates income through various means, including direct and indirect taxes, GST, excise duty, customs duty, and through gains such as Short-Term Capital Gains (STCG) and Long-Term Capital Gains (LTCG) and other taxes, The expenditures cover a wide array of sectors including education, roads, railways, energy, health, and salaries.
For the 2024-25 budget, over 11 lakh crores have been allocated towards capital expenditure, which accounts for 3.4% of the GDP. This allocation will particularly benefit the infrastructure sector along with the cement and steel industries. The battery sector will also gain as there is a full exemption on lithium import duties for corporations that manufacture batteries. Agriculture and fertilizer companies will benefit from a government allocation of 1.5 lakh crores.
Additionally, the railway sector has already seen budget announcements of 2.52 lakh crores. PLI schemes for the auto sector and In the renewable energy sector, import duty on spare parts for solar power has been reduced. Other industries, such as manufacturing, banking, financial services, and consumption-oriented sectors like the auto industry, will also experience positive impacts.for that investment in shining sectors quality shares is the best way to create wealth for skilled investors.
However, investing through Mutual Funds. For retail investors, mutual funds present the most tax-efficient investment option. Unlike individual shares, mutual funds require a deeper understanding and know-how to manage effectively. Mutual funds ensure that only quality portfolios are maintained, making them an ideal choice for risk-averse investors. In this context, the role of an advisor becomes crucial to navigate and select the best mutual funds aligned with individual investment goals, ensuring a balanced and diversified portfolio.
Conclusion: A budget fundamentally represents our income and spending, whether at a personal or national level. This year, the full Union budget was announced on July 24th, outlining the country’s income sources and expenditures. Allocating over 11 lakh crores to capital expenditure will benefit sectors like infrastructure, cement, steel, and batteries. For retail investors, mutual funds offer tax-efficient investment options to participate in Indian growth stories.
- Learn from the insights of writer, investor, entrepreneur and Founder of M I Securities & business partner of sharekhan Srinagar. Reach out at [email protected] for valuable financial advice!
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