Budget 2024 / What does the industry want from the government in the budget? Read this report

Budget 2024: The general budget for the financial year 2024-25 should focus on providing relief to taxpayers, especially those in the lower income category, so that consumption can be boosted. Industry leaders have suggested this to Finance Minister Nirmala Sitharaman. Sitharaman is scheduled to present the full budget for 2024-25 on July 23, which will be the first major policy document of the new government. The industry also urged the Finance Minister to reduce corporate tax, phase out tax exemptions and broaden the tax base to boost economic growth.

Assocham's demand

Industry body Assocham said the tax system should be rationalised and simplified to improve compliance and boost investment. Measures such as reducing corporate tax rates, phasing out tax exemptions and broadening the tax base should be considered to make the tax system more efficient and equitable.

What did ICRA say?

Rating agency ICRA said that the government can set the fiscal deficit target for 2024-25 at 4.9-5 per cent without compromising on the capital expenditure target of Rs 11.1 lakh crore. Earlier, in the interim budget presented on February 1, the government had estimated it to be 5.1 percent. The rating agency said that favorable developments on the revenue front indicate a positive outlook for the fiscal year 2024-25. ICRA believes that fiscal consolidation will become quite challenging after the current financial year.

Relief to lower income class

Mayank Gupta, co-founder and chief operating officer (COO) of Zoper Insurtech, said that the budget is expected to focus on policies that promote economic growth and especially provide relief to the lower income group, so that consumption can be boosted. He said that Section 80C of the Income Tax Act should be amended in terms of insurance, so that more individuals can be encouraged to buy insurance products. Additionally, there should be exemption for term life insurance under the new tax regime.

Expansion of PLI scheme

Deloitte India economist Rumki Majumdar suggested that the government should expand the scope of PLI schemes. He said that this should be done especially for those sectors which can generate more employment, such as textiles, handicrafts and leather. Majumdar said that schemes should continue in successful sectors like electronics, automobiles and semiconductors.

Suggestion of relief to farmers

Religare Finvest Chief Executive Officer (CEO) Pankaj Sharma hoped that there is a need to reduce financing costs through interest rate subsidy and ease access to credit through policy measures. Assocham has also suggested structural reforms in the agriculture sector to increase productivity, market access and income opportunities for farmers.