Let’s understand Aman Budget 2024 with examples: A married 30 years old married man living in Delhi with a family of 3 used to earn 25,000 per month in the year 2013.
Back then as a single person in the family and fewer people in the family, this amount could be sufficient to fulfill their all expenses including rent, groceries, transportation, and some leisure activities.
Fast forward to 2024, Aman’s income had increased to Rs. 65,000. On the surface, it seems that overall there is a rise of almost 72%.
What Is The Role Of Budget 2024 In Inflation?
Inflation means things are complex economic concepts means the general prices of goods and services increase over time. As a result, the purchasing power of money decreases.
For Examples:—
- Yesterday, your Rs 100 could buy 10 chocolates
- Today your, Rs100 could buy 8 chocolates
- Tomorrow, your Rs.100 might only buy 6 chocolates
- That’s inflation, it shows that the price of chocolates increases day by day, but the money does not go as far as it used to.
Inflation’s Real Impact On Market & Our Lives
The real impact of inflation in our lives as well as on the financial market is far-reaching and affects various aspects of our lives. Some of the most important effects in Budget 2024 are:-
1. Reducing purchasing power:-inflation affects the value of money, making it difficult to buy goods and services
2. Uncertainty:- inflation creates uncertainty in the market, making it difficult for people to understand or predict future costs, revenues, and profits.
3. Inequality:- inflation can benefit borrowers but can harm the savers in the market.
4. Economic growth Economic growth inflation can lead to a decrease or lower the economic growth as high prices reduce consumption and investments
5. Interest rates:- inflation can lead to higher interest rates making borrowing more expensive
6. Business cost:- inflation can increase business costs, potentially leading to reduced profit margins or higher prices in the market.
7. Employment:- High inflation can lead to reduced employment as businesses may struggle to maintain their profit in the market.
8. Savings:- Inflation can erode savings, especially for those people who are living on fixed incomes or with fixed-rate savings accounts.
It’s important to manage inflation to manage economic stability and protect the purchasing power of money. The central bank’s main motive is to keep inflation within a target range(usually around 2%) to balance economic growth and stability.
What is TAX REGIMES? How the old regime is different than the new one!
The tax regimes refer to the systems of taxation in place before or after a particular change or reform.
What difference between the OLD VS the NEW ones
OLD REGIMES:
1. Characterized by:-
• Higher tax
• More tax brackets
• More complex tax laws
• Fewer deductions and exemptions
• Less transparency
2. Features are:-
• Higher marginal tax rates
• More tax loopholes
• less emphasis on tax fairness
NEW REGIMES:
1. Characterized by:-
• Lower tax rates
• fewer tax brackets
• More deductions and exemptions
• Greater transparency
• Simplified tax laws
2. Features are:-
• Lower marginal tax rates
• Fewer tax loopholes
• Greater emphasis on tax fairness
• More focus on economic growth
The shift from old to a new tax regime aims to improve the tax system’s efficiency,fairness, and competitiveness, promoting economic growth and simplifying taxation for individuals
Inflation Adjustment Issues
Inflation adjustment in Budget 2024 issues refers to the problems that arise when trying to adjust financial data, contracts, or policies to account for the effects of inflation. Some common inflation adjustment issues include:-
1. Indexation:-difficulty in selecting the appropriate price index to use for the adjustments.
2. Lagging adjustments:- delays in making adjustments, which can result in over or under-compensation.
3. Variable inflation rates:- inflation rates that change over time, making it difficult to make accurate adjustments.
INDIA’S BUDGET 2024 EXPECTATIONS
India’s budget 2024 is set to be announced on the JULY 23,2024. The budget expectations are high with the main focus remaining on potential tax reforms that could easily impact the individuals and the businessman in the market.
Some expectations are;-
1. INCREASE IN BASIC EXEMPTION LIMIT:-There is some chance that there may be an increase in the basic exemption limit, which can provide relief to the individuals.
2. RAISING STANDARD DEDUCTION LIMITS:- The second expectation is that the rising of the standard deduction limit can also provide relief to the individuals.
3. FOCUS ON EDUCATION AND SKILL DEVELOPMENT:-The budget is expected to main focus on education and skill development.
4. SUPPORT FOR GREEN FINANCING:- The budget is expected to support green financing initiatives, including the possibility of reduced GST, incentive for energy-efficient practices, and green hydrogen.
