Union Finance Minister Nirmala Sitharaman on Saturday morning chaired a pre-budget meeting with Finance Ministers of all States and Union Territories. The Pre-Budget Meeting is organized by the Ministry of Finance and Corporate Affairs with Finance Ministers of all the States and Union Territories (with Legislature) to take suggestions for the upcoming Union Budget 2024-25.
Ministers of State along with other stakeholders are participating in the meeting, and visuals showed Uttar Pradesh Finance Minister Suresh Kumar Khanna and Finance Minister of Rajasthan Diya Kumari at the Bharat Mandapam venue before the meeting commenced this morning.
The Union Finance Ministry had begun consultations on the budget a few days ago with different stakeholders of the economy. Sitharaman has met economists, finance and capital market experts, and industry bodies.
Sitharaman chaired the first pre-budget consultations with leading economists on June 19. The meeting was attended by Union Minister of State for Finance Pankaj Chaudhary, the finance secretary, secretaries of the departments of economic affairs, revenue, financial services and corporate affairs, and the chief economic adviser.
Meanwhile, Sitharaman will also chair the 53rd Goods and Services Tax (GST) Council Meeting scheduled for the second half of the day. This is the first meeting of the GST Council after the formation of the new government.
State finance ministers will also be present at the 53rd meeting of the Goods and Services Tax Council. As is the norm, the GST Council gets together to discuss issues pertaining to the GST regime, such as tax rates, modifications to policies, and administrative challenges.
The Council is a key player in shaping India’s indirect tax system, ensuring it facilitates company and citizen tax relief while also aligning with the country’s economic objectives.
The information on the agenda of the Council meeting is not yet in the public domain. However, the decisions and recommendations arising from the 53rd GST Council meeting will be closely watched by various stakeholders, including businesses, policymakers, and the general public, as they have the potential to influence taxation, trade, and overall dynamics.
Goods and Services Tax was introduced in the country with effect from July 1, 2017, and states were assured compensation for loss of any revenue arising on account of the implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017 for five years.
Meanwhile, preparation has commenced for the Union Budget 2024-25, the first for the third term of the Prime Minister Narendra Modi-led National Democratic Alliance government.