Finance Minister Nirmala Sitharaman will start the preparations for the upcoming budget from Monday, amid signs of a deep recession on the economy. This can begin with consultation with experts and representatives of various sectors and listening to their problems. On the first day, the Finance Minister will consult with representatives of start-ups as well as representatives of companies related to digital payment and financial technology in the country. On Monday itself, the finance minister will have a meeting with capital market regulators and financial sector experts. During the next few days, she will meet separately with representatives of industry, agricultural experts and scientists, labor organizations, energy experts and economists. Most of the experts are assuming that in the second budget presented by Finance Minister Sitharaman, the emphasis will be on increasing domestic demand.
The general budget for the year 2020-21 will be presented on February 1. By the way, this time, a series of suggestions have been started by some industry organizations, agencies and economists about the upcoming budget. Most of the suggestions received by the finance ministry from the industry have given the most need to boost domestic demand. Leading industry chamber FICCI has welcomed the recent cut in corporate tax rate. But the Chamber also said that it is necessary to increase the amount of expenditure in the pocket of the general public and for this, personal tax rates will have to be made according to the new environment. FICCI suggests that the move to increase the exemption limit of income tax from the current Rs 2.50 lakh to Rs five lakh will prove very useful. It has been suggested to fix the tax rate on the income group of 10 to 20 lakh rupees and 20 percent on more than 20 lakh rupees. Currently, people earning more than Rs 10 lakh have to pay income tax at the rate of 30 percent.
Another Chamber of Commerce, the PHD Chamber of Commerce, has also said to give complete exemption from income tax to taxpayers with income up to Rs 5 lakh. It is noteworthy that Finance Minister Sitharaman himself has given concrete indications of income tax cuts. According to Finance Ministry officials, some economic think tanks and institutions have also received a general budget memorandum, in which to increase domestic demand in great detail. Has been discussed. The information that has come on the economy front so far this month is also proving that the government will have to take some steps to increase domestic demand. So far, the Reserve Bank of India (RBI) has helped a lot in reducing interest rates. But as soon as inflation has gone to the high level of the last three months, the bank has broken the process of cutting the repo rate. In such a situation, the government will have to arrange for the additional amount to be spent in the hands of the general public. Relief in personal tax may be the best way to do this. According to the data released by the government last Thursday, the industrial production of the country declined by 3.34 percent in October. In the same month, the rate of retail inflation has come down to 5.54 percent.
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