Budget 2022 Expectation: The industry has many expectations from the budget to be presented on February 1. Finance Minister Nirmala Sitharaman is going to present the budget 2022 at a time when the Indian economy is trying to recover from the havoc of Corona. Industry chambers have conveyed their expectations to the Finance Minister in the pre-budget virtual meeting. Chambers gave a variety of suggestions to the Finance Minister apart from continuing the economic reforms. Let us know about them in detail.
Industry Chambers believe that the domestic economy is trying to recover from the injury of Corona. In such a situation, if economic reform measures are taken in the budget, then the pace of economic recovery will be faster. The Finance Minister needs to focus in the budget on measures to promote investment. CII President TV Narendran believes that the government itself should increase spending on infrastructure. This will encourage growth.
Narendran said, “Increasing spending on the infrastructure sector has a direct impact on the rest of the economy. Therefore, the government should find a way out. The government should promote the municipal bond market. This will result in Urban Local Bodies (Urban). Local bodies will be able to raise funds themselves for investment on infrastructure.”
Industry Chamber ASCHAM believes that the government should extend the deadline of ‘Vivad se Vishwas Scheme’. Apart from this, a scheme should also be brought in for settlement of customs related issues. Vineet Agarwal, President, ASSOCHAM, said, “We commend the government for the ‘Vivad Se Vishwas’ scheme. This scheme has helped in clearing a large number of pending cases.
Ministers of State for Finance Pankaj Choudhary and Bhagwat Karad also participated in the meeting of the Finance Minister with Industry Chambers. Apart from these, many senior officials including Finance Secretary TV Somanathan, Economic Affairs Secretary Ajay Seth, DIPAM Secretary Tuhin Kant Pandey also attended the meeting.
In the meeting, the PHD Chamber suggested extension of the Performance Bank Guarantee (PBG) and Earnest Money Deposit (EDM) by one more year. The government had reduced the performance security from 5-10 per cent to 3 per cent during the Corona epidemic. Earnest money deposits were also relaxed. Both these concessions expire on December 31, 2021.
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