India’s annual budget needs to be growth-oriented: USISPF
- ByStartupStory | February 1, 2023
According to a top American India-centric strategic and business advocacy group, this year’s annual budget needs to be growth-oriented in line with the country’s economic outlook.
Previous budgets were focused on pandemic recovery.
According to Mukesh Aghi, president of the US India Strategic and Partnership Forum, the current budget must be growth-oriented in line with India’s economic outlook.
As the G20 chair, India is one of the fastest-growing economies, a beacon of economic hope as other G20 economies face global headwinds, he said.
India assumed the Presidency of the G20 for one year from December 1, 2022, to November 30, 2023.
“Investors will be eyeing the budget for economic queues and hence a robust budget focused on growth, targeting PLI schemes for manufacturing investors, and targeting supply chain recovery is the need of the hour,” Aghi said.
Easier tax laws will boost investor confidence, signalling a conducive environment for doing business while attracting significant capital inflows, particularly in infrastructure development and green energy, according to the USIBC CEO.
Last year, the US-India Tax Forum, a dedicated tax policy initiative of USISPF, presented to the Ministry of Finance collective industry recommendations on tax proposals for Budget 2023-2024.
Its recommendations included advocating for a stable and predictable tax environment, reducing the cost of doing business and the burden of compliance, and rationalising tax rates and tariffs.
According to Akhilesh Ranjan, advisor, US-India Tax Forum, former member of the Central Board of Direct Taxes, and Advisor, Tax and Regulatory Services at Price Waterhouse & Co LLP, the Budget will likely emphasise predictability and stability of tax policy, with no major changes in tax structure.
The emphasis on direct taxes will be on encouraging greater compliance through law simplification and rationalisation, more effective dispute resolution, and measures that contribute to the development of a trusting relationship between the taxpayer and the tax administration.
An announcement on the implementation of the Pillar 2 global minimum tax should also be coming, he said.
According to USISPF, the Union Budget 2023-2024 will be presented at a time when major economies around the world are experiencing recessionary and inflationary trends.
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