Budget 2024: India’s economy has been growing steadily due in part to the government’s emphasis on raising expenditures for infrastructure such as roads, bridges, airports, and train lines. The CII hopes that this emphasis is maintained. It suggested raising capital expenditure to Rs 12 lakh crore, or at least 20% more.
Balancing Fiscal Consolidation and Economic Growth
According to the CII wishlist, Finance Minister Nirmala Sitharaman should prioritise striking a balance between fiscal consolidation and economic growth. Additionally, the objective for the budget deficit should be lowered to approximately 5.4 percent of GDP for the upcoming fiscal year.
By reducing the tax to a three-rate structure—a standard rate for the majority of items, a low rate for necessities, and a high rate for luxury and demerit goods—CII recommended simplifying the GST structure.
Urban Employment Guarantee Program
CII recommended the launch of a few pilot projects under an urban employment guarantee programme in order to increase employment in urban areas. CII recommended that the National Logistics Policy, which aims to bring the cost of logistics down to a level comparable with developed nations, be implemented as soon as possible.
In an effort to help move the asset sale initiative back into high gear, CII proposed a procedure. According to the approach, public sector businesses with strong investor interest are given priority. The industry organisation has requested a three-year disinvestment programme for state-run businesses.
Extension of Tax Concessional Rate
CII suggested delaying the expiration of the 15 percent tax concessional rate for qualified manufacturing units until March 31, 2025. In order to increase employment creation, the industry organisation also suggested extending the PLI (production linked incentive) programme to labor-intensive industries including toys, clothing, and footwear.
Enhancing Dispute Resolution Processes
By strengthening dispute resolution processes including the Faceless Appeals, Advance Pricing Agreement (APA) mechanism, Board for Advance Ruling (BAR), and Dispute Resolution Scheme (DRS), the CII suggested lowering tax litigations.
The CII suggested using the National Single Window System (NSWS) for all company regulatory approvals. It is anticipated that the dispute resolution process will be improved much more.
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