Hike in EPFO pension, tax sops for FDs key Budget recommendations
Increasing the EPFO pension from Rs 1,000 to Rs 5,000, tax sops for fixed deposits to encourage savings were some of the suggestions submitted by various stakeholders in the pre-Budget consultation meetings chaired by Finance Minister Nirmala Sitharaman, over a month.
Additionally, from today, citizens will be able to share their suggestions and ideas for the Union Budget on the MyGov platform.
In the course of the in-person consultations, more than 100 invitees across nine stakeholder groups, including experts and representatives from farmer associations and agriculture economists, trade unions, education and health sector, MSME, trade and services, industry, economists, financial sector, and infrastructure, energy and urban sector, participated in the meetings. The Finance Ministry’s annual consultation process with experts, industry leaders and state officials plays a key role in crafting a comprehensive and inclusive Budget.
For example, Industry-body Confederation of India Industry(CII) has suggested the government to stick to the fiscal deficit target of 4.9 per cent of GDP for FY 25 and a target of 4.5 percent for FY26. It has also pointed out that overly aggressive targets beyond these could adversely affect growth.
The Apparel Export Promotion Council (AEPC), an apparel exporters body, urged the government to introduce tax incentives in the upcoming Budget. Their requests include removing the requirement to settle payments to MSMEs within 45 days to claim tax deductions and exempting customs duties on garment machinery imports. AEPC also called for the announcement of a 5 per cent interest equalisation rate.
Real estate developers are advocating for an increase in the deduction limit on home loan interest to stimulate demand in affordable and mid-income housing. Additionally, there have been calls for a redefinition of affordable housing and expansion of Section 80C benefits, alongside interest rate reductions, to make housing more accessible.
The Finance Minister will most likely present the Union Budget on February 1. Earlier, Prime Minister Narendra Modi also held discussions with economists and thought leaders at NITI Aayog as part of the Budget preparations.
According to experts, the upcoming Budget is expected to include forward-looking economic guidance and key announcements aimed at strengthening the country’s economy.
