CII also suggests boosting rural income by increasing daily wages under the MGNREGA program by 40% and raising payments to PM-KISAN beneficiaries by 33%. Further recommendations include raising the unit cost under the PM Aawas Yojana housing scheme and modifying the tax treatment of interest income to encourage bank deposits.
To further bolster the economy, CII advocates a 25% rise in capital expenditure, reaching Rs 14 lakh crore. The organization believes this, along with renewed focus on disinvestment and asset monetization, can generate the necessary funds to support the proposed spending initiatives.
These recommendations arrive amidst concerns about weakening urban demand, even as some companies report growth in rural markets. The government’s acceptance of these proposals, particularly the consumption vouchers, remains uncertain. Past attempts to increase PM-KISAN payments faced political roadblocks.
CII also addressed taxation, advocating for a simplified three-slab GST system encompassing petroleum, electricity, and real estate, along with faster dispute resolution. Both CII and the Federation of Indian Chambers of Commerce and Industry (Ficci) expressed concerns about the existing complex tax deducted at source (TDS) and tax collected at source (TCS) structures, urging a review of the multiple rates.
(with ToI inputs)
