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Finance Minister Nirmala Sitharaman will present her seventh consecutive Union Budget in Parliament later this month
The Associated Chambers of Commerce and Industry of India, or ASSOCHAM, has made a few key recommendations to Finance Minister Nirmala Sitharaman for structural reforms and sustainable growth, ahead of her presenting the Union Budget later this month.
The finance minister will present her seventh consecutive Union Budget later in July and before she unveils the economic vision of Prime Minister Narendra Modi’s third government, she has been holding a series of meetings with industry bodies, and taking in their suggestions and recommendations for Budget 2024.
ASSOCHAM’s recommendations cover areas as diverse as economy, social welfare, education, inflation, investment, taxation, fiscal and monetary issues, besides climate concerns.
Among salient recommendations by the Chamber of Commerce is accelerating the rate of infrastructure development through investment and Public-Private Partnership. Development of sectors such as digital infrastructure, water supply, energy and transportation is of utmost significance, ASSOCHAM notes.
A simplified tax system would be an effective way to boost investment, widen the tax base and also ensure compliance of the taxpayer, according to ASSOCHAM, and reduction in tax exemption and corporate tax rates was essential at this point.
ASSOCHAM also feels that the government should encourage competition and innovation to promote India’s financial markets, besides focussing on Non-Performing Assets (NPAs) and corporate governance rules.
Structural reforms recommended by ASSOCHAM include striking an equilibrium between job security of employees and flexibility at work by reinforcing employment and compliance measures, and the implementation of labour laws.
On bolstering the private sector, ASSOCHAM suggests promoting a more seamless process of conducting business by lessening the obstacles of bureaucracy and regulations, fostering digitisation and accelerating permit procedures.
Agricultural reforms suggested by the Chamber of Commerce include drawing more investment to boost agriculture infrastructure, promoting crop diversification and contact farming and augmenting farmers’ access to markets.
ASSOCHAM reveals climate concern, too, recommending that renewable energy, green technology and sustainability be promoted, and incentives be offered to clean practices across all sectors.