Budget 2025- The time for the budget coming next month is decreasing day by day. The eyes of the market and the country are on the announcements made in the budget. In such a situation, our associate channel CNBC-Awaaz quoted sources as saying that this time the government’s focus on fiscal consolidation may continue in the budget. According to sources, instead of increasing tax rates, the government’s focus may be seen on increasing income through reforms.
Throwing light on this entire news, CNBC-Awaaz’s Laxman Roy said that many people are demanding and pressurizing the government to give some relaxation in fiscal consolidation. Along with this, there should be some relaxation in the target of fiscal deficit. With this, the government should increase its expenditure significantly so that the demand in the market increases.
Government has no intention of relaxing fiscal consolidation
Quoting Finance Ministry sources, he said that the government is in no mood to give any concession on this front. The government is not planning to give any relaxation in fiscal consolidation. It is not possible to compromise on the government’s fiscal deficit target for the next financial year, i.e. fiscal deficit target of 4.5% or less. The government believes that because of this FIIs come and the ratings remain good. With this the condition of the economy improves.
After all, how will the government increase expenditure demand?
On this, quoting sources, Laxman Roy said that the government believes that revenue is not a big concern. The government believes that the income tax collection and GST collection are also going to be higher than estimated. Capex has reduced this year, hence the government is going to save Rs 70 thousand crores. There is no visible pressure on earnings due to reduction in capex. At the same time, the government looks strong on the revenue front. There is no visible pressure on income due to increase in tax collection. Income tax collection is expected to exceed the budget target.
There may be announcements to reduce non-productive expenses
Apart from this, instead of increasing the tax rates to increase the revenue, the government will focus on reforms i.e. on bringing more tax collection under the new process. According to sources, announcements may be made to reduce non-productive expenses. Along with this, there may be special emphasis on public investment.