2024

Guarantee

Bitcoin

WazirX

As India gears up for the Union Budget 2024, expectations are running high regarding the fiscal policies and provisions that the government is likely to unveil. The Union Budget 2024 budget is especially significant as it comes against the backdrop of the evolving crypto sector. India’s crypto community will especially keep an eye on tax on crypto, especially TDS for crypto transactions. 
The Union Budget is a pivotal event after India’s G20 presidency that saw crypto taking center stage. It did set the tone that the asset class might make it to the broader discussion of economic policies, taxation, and government spending. 
<h2 id="span-data-preserver-spaces-true-what-are-the-crypto-expectations-span">What are the crypto expectations?</h2> 
Cryptocurrencies, ranging from Bitcoin to Dogecoin, have gained popularity in India. It has attracted both investors and businesses, as per the adoption rate. However, the regulatory framework for cryptocurrencies remains ambiguous. 
As Finance Minister <a href="https://coingape.com/budget/who-will-present-the-indian-union-budget/" target="_blank" rel="noopener">Nirmala Sitharaman</a> prepares to present the budget, many stakeholders are hoping for clear and comprehensive regulations beyond its taxation. 
However, it also seeks some relief when it comes to how crypto is taxed in India. 
Rajagopal Menon from WazirX has conveyed the community’s aspirations to CoinGape, calling for a significant reduction in the Tax Deducted at Source (TDS) rate. He stated that the expectation is that the finance ministry will lower the TDS rate from 1% to 0.01%. 
Additionally, a well-defined regulatory framework is absent which has led to uncertainties and challenges for crypto businesses operating in India. 
While there are expectations that Union Budget 2024 may include provisions that shed light on the government’s approach to cryptocurrency regulation, it is unlikely that major changes around a crypto bill would make it to the Parliament this time. Additionally, this is an interim budget ahead of the general elections. 
<h2 id="span-data-preserver-spaces-true-broader-hopes-from-union-budget-2024-span">Broader hopes from Union Budget 2024</h2> 
Aside from cryptocurrency, there are several other expectations surrounding the budget. These include measures to stimulate economic growth, promote job creation, and address pressing issues such as inflation and healthcare infrastructure. 
Brokerage firm Nirmal Bang highlighted the government’s emphasis on fiscal consolidation. The firm noted in a press release that the government could primarily focus on reducing the fiscal deficit through a moderated approach in capital expenditure growth. The firm noted that there’s a slowdown in the growth of government capital expenditure. However, they see sectors like roads and railways dominating the spending. 
CareEdge Ratings told papers that they forecast an allocation of around Rs 3 lakh crore to the railways, marking a significant 25% increase compared to the last fiscal. 
Nirmal Bang also anticipates increased allocations for the National Rural Employment Guarantee Scheme (NREGS) and other initiatives aimed at rural development. It also predicts continued emphasis on environmentally friendly and sustainable technologies. Key initiatives like the Faster Adoption and Manufacturing of Electric Vehicles (FAME) are expected to maintain their subsidy programs with some adjustments. Additionally, the firm foresees increased focus and investment in the indigenization of defense and the export of defense materials. 
The upcoming budget is poised to begin tackling inflation through its revenue budget. It will also likely detail strategies for employment generation. This focus aligns with expectations set by the Congress for the upcoming Lok Sabha elections. 
Meanwhile, it’s anticipated that the key areas of deficit, inflation, and employment will be at the forefront of policies due to the elections. 
The post <a href="https://coingape.com/budget/union-budget-2024-anticipating-key-announcements-from-crypto-to-capex/">Union Budget 2024: Crypto Expectations And Announcements</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Union Budget 2024: Crypto Expectations And Announcements

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