As a part of pre-budget consultations, Union FM Nirmala Sitharaman has scheduled a meeting to hold discussions with industry associations on June 20.
Industry associations like the Federation of Indian Chambers of Commerce & Industry (FICCI), Confederation of Indian Industry (CII), Associated Chambers of Commerce and Industry of India (Assocham), and PHD Chamber of Commerce and Industry will present their budget suggestions and recommendations.
Inputs from key stakeholders in the economy will help the FM come up with a comprehensive budget plan for FY25. Developing measures to boost growth without hurting inflation is a tough task for Sitharaman, especially when she is aiming to transform India into a $5 trillion economy in the near future and a ‘Viksit Bharat’ by 2047.
The discussions are expected to cover a broad range of topics, including tax reforms, incentives for various industries, measures to boost economic growth, and policies to support small and medium enterprises (SMEs).
A meeting with Revenue Secretary Sanjay Malhotra is also scheduled with the industry leaders on June 18, prior to meeting with FM.
GST council meeting on June 22
This will be the first meeting with the Goods and Services Tax (GST) council in PM Modi’s third consecutive tenure. The agenda set for the meeting has not been disclosed yet, but it is likely that the state finance ministers will drop in suggestions for the indirect tax regime to be proposed in the upcoming budget.
Industry leaders are also keen for signals on the revival of a plan to restructure the complex multiple-rate tax structure with a promised review of the 28% levy on bets made in online gaming, casinos, and horse racing.
Although the council is supposed to meet every quarter, they have met only six times since their formation in 2022. Their last meeting was conducted on October 7, 2023.
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FM to present Budget 3.0 in July
In Modi’s third tenure, Sitharaman is contributing as the Finance Minister for the second time in a row. During her previous tenure, the FM pushed the Indian economy to a robust 8.2 per cent growth in 2023-24, which is the fastest among the world’s major economies, and inflation coming down to below 5 per cent.
After presenting the interim budget in February, Sitharaman is facing the challenge of continuing on a high growth trajectory, creating more jobs while at the same time keeping in mind the aspirations of the coalition partners of the Modi 3.0. The Budget 3.0 will be declared in July.
According to the sources, the third budget will propose a reduction in tax slabs from four to three and rationalize GST to make tax collection and compliance easier. It would also offer rebate utp Rs.7 lakh annually. The government intends to prioritize tax cuts over increased spending in the upcoming announcement. RBI forecasts a 7.2% economic growth this fiscal year, driven by rural demand and easing inflation.
