FICCI Predicts Tax Reforms and Economic Boost in Upcoming Union Budget
The Federation of Indian Chambers of Commerce & Industry (FICCI) has predicted that the government might reform the taxation system in the upcoming Union Budget to stimulate economic growth. This prediction is based on a survey conducted by FICCI.
Taxation Reforms
FICCI expects the Union Budget to include:
- Simplification of GST rates
- Increased state finances
- Simplified capital gains tax
Fiscal Management
FICCI praised the government’s fiscal management and expects continued prudence to ensure macro stability. Economists suggest leveraging additional resources from robust tax collections and the Reserve Bank of India’s dividend transfer to increase social sector spending, especially in rural areas.
Capital Expenditure
The capital expenditure target might increase but is not expected to deviate much from Rs 11.1 trillion for FY25 due to slow spending in the first half of the year.
Employment and Skill Development
FICCI anticipates measures for employment generation and skill development, including:
- Employment-linked incentive schemes
- Increased investment in labor skilling
- Enhanced women’s workforce participation
Infrastructure Development
Focus on improving storage infrastructure to reduce post-harvest losses and add value to agricultural produce.
Support for MSMEs
FICCI expects support for Micro, Small, and Medium Enterprises (MSMEs) through measures like extending the non-performing assets (NPA) classification period from 90 days to 180 days.
Innovation and R&D
The Interim Budget showed a clear intention to encourage innovation, and further details on the R&D and innovation fund are expected.
Doubts Revealed
FICCI -: FICCI stands for the Federation of Indian Chambers of Commerce & Industry. It is an organization in India that represents businesses and industries.
Union Budget -: The Union Budget is a financial plan presented by the Indian government every year. It shows how the government plans to spend money and collect taxes.
tax reforms -: Tax reforms are changes made to the tax system to make it better. This can include making taxes simpler or fairer.
GST -: GST stands for Goods and Services Tax. It is a tax that people pay when they buy goods and services in India.
capital gains tax -: Capital gains tax is a tax on the profit you make when you sell something valuable, like property or stocks.
social sector spending -: Social sector spending is money the government spends on things like education, healthcare, and welfare to help people.
infrastructure development -: Infrastructure development means building and improving things like roads, bridges, and schools.
MSMEs -: MSMEs stands for Micro, Small, and Medium Enterprises. These are small businesses that are very important for the economy.
employment generation -: Employment generation means creating new jobs for people.
skill development -: Skill development means teaching people new skills so they can get better jobs.
