The upcoming budget of India in the financial year 2023-2024 is highly anticipated, as it will be the deciding factor when it comes to the economic development of the country. Corporates in India have faced several regulatory, structural and behavioral changes due to the disruption caused by the COVID-19 pandemic, and they are hopeful that the upcoming budget will bring some relief.
The corporate sector expects the upcoming budget to focus on infrastructure development, reviving exports, encouraging Make in India production, enabling technology adoption and boosting consumer demand. Depending on the policy approach of the government, these factors will drive economic recovery both in terms of output and employment.
The expectations of the budget center around fiscal reforms aimed at bringing in greater transparency, simplifying the tax structure and enhancing the ease of doing business. Lowering the corporate tax structure in the medium term and abolishing Minimum Alternate Tax (MAT) is something that will help corporates towards capital formation, while establishing stability in fee structures will also do wonders for the industry. Besides, to infuse liquidity, corporates are looking forward to the revival of the tax rate scheme.
When it comes to government subsidies and incentives, a key item on the wish-list is increased budgetary outlay for sectors such as health care and agribusiness, as well as digital payments and e-commerce. In addition, the government should consider extending the benefits of digital payments such as Unified Payments Interface (UPI) and BHIM. Further, a substantial reduction or concession in GST levied on services would pave the way for better operational efficiencies across the board.
Moreover, with tariffs on fuel, diesel and other resources rising, the corporate sector is expecting the budget to announce steps to encourage green investments, enable new sources of energy and promote resource conservation measures.
The corporate sector is optimistic that the government’s budgetary plans will not only provide the much-needed relief but also create favorable conditions for India to move towards its goal of becoming a $5 trillion economy. With the right policy framework, India’s Budget 2023-24 will surely provide more opportunities and propel the country towards becoming more competitive, innovative and prosperous.
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