Budget Could Bring In More Standardised Approach To Taxation: Report

In the India budget preview, Moody's Analytics said the budget will have a bearing on business and consumer confidence.

The full budget for 2024-25, to be presented in Parliament on Tuesday, could possibly increase capital expenditure and may usher in a more standardised approach to taxation, Moody's Analytics said.

After losing its absolute majority in the lower house, or Lok Sabha, in June, Prime Minister Narendra Modi's Bharatiya Janata Party will be looking to nurture confidence and public trust in the new coalition government that it now leads, said Aditi Raman, Associate Economist, Moody's Analytics.

While the interim budget left tax rates on hold, any uptick in planned government spending will need to be accompanied by a higher tax take, either through direct or indirect taxation, to prevent the deficit from widening, she said.