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Budget 2022-23: CII recommends fiscal target of 6.8% of GDP, raising public healthcare investment

Budget 2022-23: CII recommends fiscal target of 6.8% of GDP, raising public healthcare investment

The Confederation of Indian Industry (CII) has laid down key recommendations for the upcoming Union Budget 2022-23 in a document titled Pre-Budget Memorandum 2022-23.

Some noteworthy recommendations are that the government should adhere to its fiscal target of 6.7 per cent and reduce deficit to 4.5 per cent by 2025-26 Some noteworthy recommendations are that the government should adhere to its fiscal target of 6.7 per cent and reduce deficit to 4.5 per cent by 2025-26

The Confederation of Indian Industry (CII) has laid down key recommendations for the upcoming Union Budget 2022-23 in a document titled Pre-Budget Memorandum 2022-23.

Some noteworthy recommendations are that the government should adhere to its fiscal target of 6.7 per cent and reduce deficit to 4.5 per cent by 2025-26, announcing a voucher scheme on the lines of the LTC cash voucher scheme for government employees and Special Festive Advance Schemes for areas like education and consumer durables.
 
The industry body has given its recommendations on a range of issues like fiscal deficit, ramping up investments through government schemes like National Infrastructure Pipeline (NIP) and the Gati Shakti Scheme, consumption, healthcare concerns, education system, financing growth and sustainability, boosting competitiveness in the manufacturing sector, strengthening MSMEs, supporting exports, technology and R&D, employment livelihood and promoting sustainability.

Graphic: Mohsin Shaikh

Here are some of the pre-Budget recommendations given by the CII

  • Adhere to fiscal target of 6.8 percent of GDP laid down by the Government of India and reduce deficit to 4.5 percent by 2025-26
  • Shift from the current practice of cash-based accounting towards accrual-based accounting as suggested by the 12th Finance Commission
  • Hasten divestment process of PSUs like LIC, BPCL and Shipping Corporation of India and utilise the proceeds from this for creating social and physical infrastructure in urban and rural areas
  • Put in place a regulatory framework, transparent bidding process, flexible contract management and a credible dispute settlement procedure to attract private investment in National Monetisation Pipeline (NMP)
  • Tax incentives for investments in Infrastructrue Investment Trusts (InvITs) and bring these under the Insolvency and Bankruptcy code (IBC)
  • Rationalise non-productive expenditure by better targeting of subsidies on fertilisers, agri-inputs, electricity among others through direct benefit transfer (DBT)
  • Decriminalise business interfacing laws such as Partnership Act, IBC, Consumer Protection Act, Competition Act, Metrology Act among others
  • Promote digitisation of court procedures, facilitate publication of model contract templates and promote Alternative Dispute Resolution (ADR) mechanism
  • Strengthen logistics and related infrastructure and rationalise the dwell time across all major ports and customs
  • Revamp cost of electricity supply from the grid to reduce costs. Standalone captive generators shouldn’t be penalized with electricity duty
  • Develop a transparent institutional capacity to plan, prepare and complete big-ticket projects to minimise cost and time overruns
  • Voucher Scheme on the lines of the LTC cash voucher scheme for government employees and Special Festive Advance Schemes for areas like education and consumer durables
  • Raise public investment in healthcare to around 2.5-3 per cent of GDP by 2025 from 1.29 currently
  • Create Medical Innovation Fund for supporting companies with the capital to promote digital healthcare infrastructure
  • Relaunch Pradhan Mantri Awas Yojana (PMAY) scheme with in-built credit linked insurance cover for the beneficiary so that families retain their dream home even in cases where the primary beneficiary loses his/her life

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