The week-long pre-budget consultation meetings for budget 2023-24 chaired by Union Finance and Corporate Affairs Minister Nirmala Sitharaman concluded on Monday.
The meeting was held in virtual mode between November 21 and 28. According to the Ministry of Finance, more than 110 invitees representing seven stakeholder groups participated in eight meetings scheduled during this period. The stakeholder groups include representatives and experts from agriculture and agro-processing industry; industry, infrastructure and climate change; financial sector and capital markets; services and trade; social sector; trade unions and labour organisations and economist .
Sitharaman held eight rounds of discussions starting with India Inc on November 21 and ending with a round of consultation with economists on Monday. The Budget 2023-24 would be tabled in Parliament on February 1.
States’ wishlist
State finance ministers in their pre-budget consultation, stepped up their demand for more funds, a greater say in implementing centrally-sponsored schemes (CSS) and an increase in payments for royalty on minerals.
Tamil Nadu Finance Minister P Thiaga Rajan said that states, cutting across party lines, said that centrally sponsored schemes are constraining states’ fiscal autonomy since in some schemes states end up contributing large amount which is more than the Centre’s contribution. States demanded that they should be given greater flexibility in implementing CSS. CSS are implemented through a joint contribution of the Union Government and State Government
Here’s what exporters want
Earlier, in a pre-budget meeting with Finance Minister Nirmala Sitharaman, Federation of Indian Export Organisations (FIEO) said depreciation of the rupee against the US dollar is affecting exports’ competitiveness and due to that the sector requires more support.
“Creation of employment is the biggest challenge faced by the country….We would urge the government to provide fiscal support to units who provide additional employment in the export sector. Such a scheme will also help workers move from informal employment to formal employment,” the federation said.
Incentives may be provided based on the twin criteria of growth in exports and growth in workers so that while on the one hand exports are increased, on the other hand, employment intensive units also get a boost, it said, adding that when global demand is declining, it becomes all the more necessary to go for aggressive marketing.
It also asked for a 200 per cent tax deduction on the expenditure made by exporters for overseas marketing. On freight, it said Indian exporters remitted USD 82.65 billion as transport service charge in 2021.
It suggested that GST refund to foreign tourists at the airport has not yet been operationalised and such an initiative will not only give fillip to tourism but will also help in exports of handicraft, non-precious jewellery, carpets, textiles, khadi, and leather.