Urban jobs scheme, tax rationalisation, public capex key suggestions to FM ahead of budget

Finance Minister Nirmala Sitharaman has received a slew of suggestions during her pre-budget consultation meetings ranging from the rationalisation of the income tax regime, tax cut on electric vehicles, the continuation of allocation on public capital expenditure and an urban employment guarantee programme to boost employment generation in urban areas, among others. The finance minister's pre-budget consultation with various segments of the economy concluded yesterday.

On the key suggestions made by the various stakeholder groups, the finance ministry said, "The representatives of the stakeholder groups made a number of suggestions for the forthcoming budget that included a mechanism for green certification to help MSMEs, urban employment guarantee programme to boost employment generation in urban areas, rationalisation of income tax, creation of innovation clusters, schemes for improving domestic supply chains, reduction of taxes on the electric vehicle, and introduction of electric vehicle (EV) policy."

Measures to promote India as a hub for green hydrogen, social sector entrepreneurship fund for social impact companies, training and accreditation of care economy workers, the portable social benefit for children, National Regulatory Authority for Water and Sanitation, coverage of unorganised workers under employees' state insurance corporation (ESIC), the continuation of public capex, fiscal consolidation and lower customs duties, were some of the other recommendations received by the minister during the interactions.

Finance Minister chaired the pre-budget consultation meetings for Budget 2023-24 virtually between November 21 and November 28.

According to the ministry of finance, more than 110 invitees representing seven stakeholder groups participated in eight meetings scheduled during this period. The stakeholder groups include representatives and experts from the agriculture and agro-processing industry, infrastructure and climate change, financial sector and capital markets, services and trade, social sector, trade unions and labour organisations and economists.

It may be noted that earlier, Sitharaman has accorded economic growth as the top budget priority. She said that economic growth will be accorded the top priority in the upcoming budget during her official visit to the US last month and also mentioned that amid the ongoing geo-political situation, energy and fertiliser prices are one of the key near–term challenges.