New Delhi : After the election, the government is preparing to unveil its complete budget for the fiscal year 2024-25. Industries expect the budget to introduce measures that could positively affect people's finances, potentially increasing their disposable income for higher spending. This is seen as a means to alleviate inflationary pressures and drive economic growth. However, experts emphasize the importance of the government focusing on micro-infrastructure development.
The Confederation of Indian Industry (CII), in its presentation before the finance ministry, suggested several measures to boost consumption. ETV Bharat obtained a copy of the presentation, which proposed marginal relief in income tax for taxable incomes up to Rs 20 lakh. CII also recommended increasing disposable incomes for these taxpayers to stimulate consumption.
Additionally, CII suggested revising the minimum wage under the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) to Rs 375 per day from Rs 267 per day in FY24, as recommended by the Expert Committee on Fixing National Minimum Wage. Furthermore, CII called for increasing the direct benefit transfer (DBT) amount under Pradhan Mantri Kisan Samman Nidhi (PM KISAN) to Rs 8,000 per year from Rs 6,000 per year currently.
According to CII, the government should also consider reducing excise duty on petrol and diesel. CII pointed out that Brent oil prices have decreased by nearly 40%, while retail pump prices of petrol (in Delhi) have only dropped by 1.8 rupees per litre. Therefore, CII believes there is scope to reduce excise duty on petrol and diesel.
In contrast, experts advocate for a different approach. Noted economist and India's former chief statistician Pronab Sen shared his views with ETV Bharat. He suggested that the government should wisely focus its spending to create jobs automatically. According to him, the government should allocate more funds for micro-infrastructure projects such as roads in rural areas and irrigation facilities. This approach would not only provide direct employment to rural populations but also create beneficial infrastructure.
The budget session of Parliament is set to take place from July 22 to August 12. Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget for 2024-'25 on July 23. Sitharaman confronts several challenges in her forthcoming budget.
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