This year, it is widely believed that the fiscal deficit will exceed its target of 3.3% of GDP due to the shortfall in revenue collection. The question is, at what level should it be set for the coming fiscal year 2020-21? CII believes this is not the time for belt tightening or fiscal consolidation, in view of the economic slowdown.
The CEAMA has urged the government to offer incentives for manufacturers to produce energy-efficient products which will be in line with the government's focus on sustainability in a pre-budget memorandum.
The government is discussing multiple options on cuts in personal income tax (PIT) in the forthcoming Union Budget, as the clamour grows for more money into the pockets of consumers and households to boost consumption in the economy.
The govt is estimating a hit of around Rs 1 lakh crore due to a reduction in corporation tax, against Rs 1.45 lakh crore calculated when the move was announced in September. Official said this estimate was based on an analysis of advance tax payments and will provide much-needed cushion to the Centre. The tax collections expected to be lower than the budget estimate.