New Delhi : India’s top industry leaders ask Finance Minister Nirmala Sitharaman to boost capital expenditure 10 trillion, rationalize personal tax rates, especially at the lower end of the income spectrum, and focus on job creation in the Modi government’s last full budget before the 2024 national elections.
Lobby groups and top industry executives said the budget for the year beginning April 1 would be crucial to address challenges related to consumer demand and job creation amid global economic growth and geopolitical uncertainties.
Businessmen including Sanjiv Goenka, Chairman of the RPSG Group; GMR Group Chairman BVN Rao; and Naveen Munjal, Managing Director, Hero Electric Vehicles; and representatives of lobby groups attended the meeting with Sitharaman as she prepares the budget for the next financial year.
The Union Budget for 2023-24 is expected to be presented on 1 February.
“After a stupendous performance in the last financial year, the global growth slowdown has already started affecting our exports. The external outlook is likely to remain unfavorable for some time. Therefore, we need to create new areas of growth to spur domestic demand, inclusion and growth and broaden our economy by promoting job creation,” said Sanjiv Bajaj, President, Confederation of Indian Industry (CII) and Chairman, Bajaj Finserv Ltd. needed. pre budget meeting
CII recommended an aggressive focus on privatization and broadening the tax base through rationalization of GST rates and reforms in tax administration. Further, the lobby group suggested that the budget target higher asset monetization receipts in FY24.
“The budget should increase the allocation in capital expenditure to 35% as in the previous year, taking the total public capex to around 10 trillion. It should also focus on rural infrastructure, which will help generate employment in rural areas and boost rural demand which is a concern in the domestic economy today.”
This week was the first of the pre-Budget 2023 consultation meetings. The meetings with businessmen and experts in the fields of infrastructure and climate change were chaired by Sitharaman and attended by ministers of state for finance Pankaj Choudhary and Bhagwat Kishanrao Karad, finance secretary TV Somanathan, secretaries of other departments of the finance ministry and the chief economic minister. Advisor V. Ananth Nageswaran.
Assocham President Sumant Sinha highlighted the need to increase capex to boost the private sector investment cycle as global value chains are being restructured. It also urged the government to cut personal income tax and extend the 15% corporation tax rate for new manufacturing units for another five years.
Currently, new units starting construction before March 31, 2024 are eligible for a concessional 15% corporation tax rate.
“In order to further boost domestic demand and increase disposable income in the hands of people, personal income tax should be reduced at all levels… The optional tax regime of 15% available to new manufacturing entities should be extended to existing and new companies should be done. Focus on sectors like logistics, renewable energy, healthcare, EVs etc to help generate employment, drive sustainable climate change and economic growth,” Sinha said in his representation.
On Tuesday, the Finance Minister will meet representatives of agriculture and agro-processing industry, representatives of the financial sector and the capital market. She will also meet experts from the social sector including health, education, water and sanitation, besides representatives from the service sector and trade bodies later this week.
A pre-budget meeting with trade union representatives and economists is to be held on November 28.
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