Interim Budget 2024: Navigating the present, shaping the future

As the nation anticipates the unveiling of the interim budget for 2024, there is a palpable sense of expectation regarding measures that will not only address current economic concerns but also pave the way for a financially robust and knowledgeable society. Here are four crucial expectations that could play a pivotal role in shaping the fiscal landscape during this period.

1.    ⁠Tax benefits in the new regime, especially in health and pension schemes. NPS currently covers benefits on employers contribution for upto 10%. Increase in the same will help people plan better for there retirement as well as healthcare pursuits. Proposals for a higher deduction limit on health insurance premiums and an increase in tax benefits for contributions to the National Pension Scheme (NPS) can offer quick financial support, addressing immediate concerns related to healthcare and retirement planning.

2.    Concept of financial wellness to be introduced: The concept of financial wellness should not wait for a comprehensive budget but be acknowledged immediately through targeted initiatives. Incentives for companies that introduce short-term financial wellness programs for employees, tax benefits for individuals engaging in financial education programs, and collaboration with private enterprises for quick implementation can contribute to the immediate recognition and promotion of financial wellness during this interim period.

3.    Creating opportunities to learn personal finance for people at large: A focused emphasis on empowering individuals with financial literacy is imperative. The budget should allocate resources for short-term initiatives aimed at disseminating practical knowledge about personal finance. Workshops, webinars, and digital campaigns can serve as effective tools in quickly equipping people with essential financial skills, fostering a culture of financial awareness in the short term.

 By focusing on empowering individuals through rapid financial literacy initiatives, providing immediate tax relief on essential fronts, swiftly implementing financial planning education measures, and recognizing the importance of financial wellness, the budget can set the stage for a financially secure and knowledgeable populace. As we await the interim budget's unveiling, the hope is that it will serve as a pragmatic and responsive tool for navigating the present while laying the foundation for a prosperous future.

Views are personal. The author is CEO, Financial Planning Standards Board of India (FPSB India)