Industry associations have high expectations from the Union Budget 2025-26. The Federation of Indian Chambers of Commerce and Industry (FICCI) has put forth an 11-point agenda aimed at fostering economic growth, enhancing ease of doing business and ensuring inclusive development.
More capital expenditure
The thrust laid by the government on capex over the last few years aided recovery and ensured support to the growth momentum. Industry body-CII in its Budget recommendation suggested that the government should increase public capital expenditure by 25 per cent over 2024-25 (BE) to Rs 13.9 lakh crore. Priority should be given to sectors like rural infrastructure, agriculture, urban infrastructure, and the social sector such as healthcare and education.
Next-gen reforms
According to FICCI, many of the next generation reforms lie in the State and Concurrent domains and require consensus-building to take them forward. FICCI is of the view that inter-state institutional platforms on the lines of GST Council can be created — especially for reforms in areas of land, labor and power.
Rationalise TDS rates
To enhance ease of doing business, industry associations have suggested to rationalisation of the multiple Tax Deducted At Source(TDS) and Tax Collected At Source(TCS) rates by converging them into a simple two or three-tier rate structure which will avoid classification disputes.
Calibrated disinvestment
Industry associations are of the view that the government should adopt a five-year roadmap to bring down government stake in PSUs to 51 per cent. The disinvestment should be done in two stages. In first stage, disinvestment should be done in those PSUs where the government stake is upto 75 per cent whereas in the second stage, PSUs with government stake of more than 75 per cent can be divested. Also, the government should constitute a ‘Task Force or Expert Committee’ to suggest which PSEs to disinvest and when.
Besides, to reduce litigation on the direct tax matters, it is suggested to introduce a new forum comprised of independent experts.
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