Budget 2024 expectations: Finance Minister Nirmala Sitharaman is getting ready to present Modi 3.0 government’s first full Union Budget in the second half of July. This will be Sitharaman’s seventh Union Budget in a row, making her the first finance minister to do so. Ahead of India Budget 2024, industry associations and bodies are releasing their Pre-Budget Memorandum for the year 2024-2025 as a set of suggestive policies pertaining to taxation, regulatory procedures, fiscal policy, taxation, and other economic measures.
Recommendations by ASSOCHAM (Associated Chambers of Commerce and Industry of India) came in the form of a document outlining suggestions on economic matters, including fiscal consolidation, monetary policies, education, social welfare, investment, inflation, taxation, and sectoral issues.
To cater to long-term growth, it recommends certain ‘Structural Reforms’, goals and objectives that the budget can be modelled on. They are detailed as follows:
Recommendations by ASSOCHAM (Associated Chambers of Commerce and Industry of India) came in the form of a document outlining suggestions on economic matters, including fiscal consolidation, monetary policies, education, social welfare, investment, inflation, taxation, and sectoral issues.
To cater to long-term growth, it recommends certain ‘Structural Reforms’, goals and objectives that the budget can be modelled on. They are detailed as follows:
- In the labour market, to strike a balance between employee security and flexibility through labour laws, formalisation of employment, and compliance measures.
- Continue providing impetus to the private sector by promoting the ease of doing business through reduction of regulatory bottlenecks and bureaucratic hurdles by simplifying regulations, expediting permits and approvals, and promoting digitalisation.
- Boost financial markets by promoting innovation and competition, address concerns related to Non-Performing Assets (NPAs), and improve corporate governance guidelines.
- Hasten infrastructure development through increased Public-Private Partnerships (PPPs) and strategic investments, with special emphasis being placed on sectors such as transportation, energy, water supply and digital infrastructure to ensure comprehensive development.
- Place emphasis on agricultural reforms such as contact farming, investment in agri-infrastructure, crop diversification and easy incorporation into the value-chain – thereby enhancing productivity, diversifying potential income streams and increasing access to the market.
- Simplify and make efficient the tax regime to increase investments, enhance compliance, and broaden the tax base – through reduced corporate tax rates and decreased tax exemptions.
- Address climate-related matters and enhance sustainability, encourage adoption of green technologies and renewable sources of energy, along with incentivising clean practices across sectors.
Assocham is of the view that by prioritizing these structural reforms in the Union Budget 2024-25, the government will be able to lay the foundation for sustainable and inclusive growth.
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The government will inevitably have to cater to a wide range of sectors and industries in its upcoming budget. These reforms become crucial for the government to not only secure support and deliver promises, but also to promote development and ensure equitable upliftment as projections for India to become the third-largest economy in the world by 2027 gain increasing credence by the day.