Union Budget 2019: Further simplification of goods and services tax (GST) and Insolvency and Bankruptcy Code (IBC)-type framework for NBFC sector are among the key suggestions by the economists for the ensuing Budget to Finance Minister Nirmala Sitharaman on Friday. There is also a need to infuse capital in banks and harnessing e-commerce’s potential for job growth, they also said, adding that the budget should focus on initiating job-oriented growth steps and maintaining fiscal prudence.
In the sixth such pre-Budget consultation meeting, the economists said that the next five years provide a unique opportunity to the government to promote manufacturing through ‘Make in India’, news agency PTI reported. “I have basically talked about the external threats and opportunities because most people focus on fiscal monetary. So I said (it) is a once in a generation opportunity of moving supply chain to India,” the news agency reported citing former CEA Arvind Virmani as saying after the meeting concluded. There is a need to liberalise the agriculture sector and the farmers should also be taught how to face markets, said Manoj Panda, Director, Institute of Economic Growth.
There were also suggestions on doing away with bottlenecks in the supply chain and specific duties on textiles, PTI also reported. There is also a need to revive inter-state councils for holistic domestic growth, skilling youths, providing a boost to services and manufacturing sector, and bringing structural reforms for long-term growth, the economists added. The budget should also look at incentivising digital transactions, the economists also said in the discussion.
Finance Minister Nirmala Sitharaman will present the budget on July 5 in the parliament. It will be the first budget of the Modi government after getting re-elected into power with a huge margin.
Source : Financial Express