CII suggests 7-point agenda for Union Budget-2025
The Confederation of Indian Industry (CII) has suggested a seven-point agenda to the Finance Ministry for the Union Budget-2025.
Ahead of the Union Budget 2025, the EY India has said the government is expected to focus on boosting private capex, tax simplification and reduction in personal income tax, particularly for the lower-income groups, to stimulate demand.
EY India said with over Rs 31 lakh crore stuck in income tax disputes as of 2023-24, there is an urgent need to clear Commissioner of Income Tax (Appeals) backlog and bolster alternate dispute resolution mechanisms like advance pricing agreements and safe harbours.
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The expectations from Budget are focused on a set of strategic reforms that can propel the economy forward, it said. With an emphasis on fiscal consolidation, tax system simplification, and investment-driven growth, the Budget is expected to lay a solid foundation for sustained economic development.
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EY anticipates significant reforms to simplify the tax system and improve taxpayer services, reduce litigation, and enhance tax compliance.The government is already working on simplifying the Income Tax laws. It should follow a consultative approach and invite public comments on the draft proposals, it said.
It highlighted that to stimulate private sector investment, a progressive reduction in interest rates should be considered. Additionally, targeted employment schemes should be fast-tracked to uplift urban demand and support economic momentum in FY26.
In its note, EY believed that to achieve sustainable growth in FY26, the Government must prioritize reducing the fiscal deficit to 4.5 per cent of GDP in FY26 while reducing the debt-to-GDP ratio, which stands at 54.4 per cent, well above the FRBM target of 40 per cent.
A medium-term real GDP growth target of 6.5 per ent or higher will require boosting the aggregate investment rate (GFCF) measured at constat prices to 34 per cent. This can be achieved by increasing Government’s capital expenditure, improving capital efficiency and encouraging states to enhance their investment spending.
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