Brokerage firm Motilal Financial Services has given 5 advice to the government before the budget. If the government considers these advice, then the speed of the economy will increase again. GDP growth has come down to 5.4 per cent in the second quarter of this financial year. Economists and representatives of the industry have advised the government to take measures to increase consumption soon. He believes that if measures are not taken to increase consumption soon, then the Indian economy can show great lethargy.
Tax rules should be made easier
The government will have to increase the focus on making tax rules easier. It has been more than 7 years since the system of GST came into force, but still there are many flaws in this system. The government will also have to take measures to make income tax rules easier. This will increase people’s interest in tax compliance. This will increase the revenue of the government.
States condition for loan of capital expenditure
Motilal Oswal says that the government should set certain conditions for the states to give interest free loan for capital expenses. The Center should give this loan to the states on the basis of performance. This will increase the sense of responsibility in the states. They will be careful in spending capital.
Focus on increasing income instead of consumption
The brokerage firm believes that the government should focus on increasing the income of families instead of measures to increase consumption. The government can announce measures to promote the construction sector in the budget. The construction sector has the ability to create a large number of employment opportunities. The government will also have to take measures to encourage MSMEs.
Measures to reduce fiscal deficit
Motilal Oswal believes that the government should set a target of 4.5 per cent of fiscal deficit for the next financial year. In the budget last year, the government had set a target of 4.9 per cent for fiscal deficit. There will be no problem in achieving this target. The government will also have to increase capital expenditure. For this, the government may increase the target of FY25 by 10-15 percent. Last year, the government had targeted a target of Rs 11.11 lakh crore for capital expenditure.
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More focus on increasing private investment
The brokerage firm says that the government will have to encourage companies to increase private investment. The government has increased its expenses significantly in the last 2-3 years. However, there has not been much increase in private capital experience. If companies increase capital expenditure, it will have a positive effect on the economy.