Industry body FICCI on Thursday laid down a list of demands during the pre-budget consultation with Finance Minister Nirmala Sitharaman.
These included a push for infrastructure development and taking further measures to rein in food inflation for the upcoming full budget of Modi 3.0.
“We look forward to a prudent budget that builds upon the strengths of Indian economy for accelerated growth and remains committed to fiscal consolidation,” said Subhrakant Panda, Immediate Past President, Federation of Indian Chambers of Commerce & Industry (FICCI) said.
“Today’s meeting with the finance minister was more broad-based where we touched upon broader issues, and primarily what can be done to maintain India’s growth momentum,” he added.
“The Union Budget, being the first major public policy announcement of the government, is expected to set the tone for the next five years in terms of government’s policy direction,” Panda noted.
In a statement, the FICCI noted that the government should continue to lay thrust on public capex on physical, social and digital infrastructure in the upcoming Union Budget.
“The capital expenditure outlay for FY25 should be increased by 25% over RE for FY24 to Rs 11.8 lakh crore,” it said.
Notably, in the last interim budget, Sitharaman proposed to raise the capital expenditure target by 11.1 per cent to record Rs. 11.11 lakh crore for the next fiscal year starting April 1.
To further enhance the ease of doing business, the government should consider laying down a roadmap for rationalization of TDS rate structure, said FICCI.
As part of its suggestions, the body has recemmended the need for three rate structures for TDS payments – TDS on salary at slab rate, TDS on lotteries/online games etc. at maximum marginal rate and two standard rates for TDS for different categories.
FICCI further for the agricultal sector said that to strengthen agri-ecosystem and boost agri-productivity, the government should launch an agricultural yields mission for bottom 100 districts on the lines of aspirational districts.
Adding to suggestions, the body also requested for national board for FPOs (NBFPO) to promote, upskill, provide a network for and monitor progress of FPOs.