
(Image source from: x.com/FinMinIndia)
As India prepares to announce the full budget for the fiscal year 2024-25, stakeholders from various sectors are eagerly awaiting the government's fiscal roadmap. This year's budget is particularly important as the country struggles with the post-pandemic economic recovery and aims to sustain growth by stabilizing inflation and pursuing equitable development. The income tax rates can be adjusted under the old regime or the tax exemption limits can be increased under the new regime. It can benefit different income groups. The government could focus on providing tax relief to certain groups, such as those with high expenses, through new tax brackets. The full 2024-25 Budget is expected to be tabled in Parliament next month on July 23 or 24. The Hindustan Corporation, in its relations with India, advocated a reduction in the income tax burden on the common man, increased capital expenditure and decisive measures to curb food inflation. Sitharaman took the lead in the Union Budget. Industry leaders and organizations also called on the government to place more emphasis on infrastructure development to maintain the momentum of economic growth.
CII chief Sanjeev Puri submitted eight points to the finance minister for consideration. These include reducing income tax at the lower end of the income scale, streamlining employment-related incentive schemes such as Production Linked Incentives (PLI) and improving ease of doing business. CII also made recommendations on agriculture and rural development. Fitch's recommendations revolve around more investment, innovation and tax simplification. Another leading industry body, Assocham, expressed confidence that the Narendra Modi 3.0 government will prioritize investments in infrastructure, education and healthcare with a strategic focus on capital expenditure in the Union Budget 2024-25. Industry body PHDCCI has announced several initiatives including the introduction of four labor laws across the state to enhance industry competitiveness and strengthen university-industry collaboration to boost R and D activities in the country.
The establishment of the 8th wage commission, the increase of tax benefits for wages and the transformation of the old pension system were among the most important demands formulated by the union leaders at the meeting before the budget. The unions demanded that the government stop the privatization of PSUs, scrap the new pension scheme and restore the old pension scheme (OPS). They also demanded immediate filling of all vacancies in the central government and PSUs and an end to the practice of contracting and outsourcing. They also said the funds should be raised by raising corporate and wealth taxes and introducing an inheritance tax, rather than putting ordinary people on the hook for GST on basic food and medicine. The meeting was attended by representatives of 12 trade unions including INTUC, AITUC, CITU, AIUTUC, TUCC and UTUC. One of the demands is to expand the scope of MGNREGA with a guarantee of 200 working days per family. Also, agriculture and allied sectors should be linked with MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act). He also called for health care coverage for all people over 60 years of age. The contribution can be made up to a nominal amount of 100 rupees per month and a coverage of 5 lakh rupees per year.