CII’s suggestions to provide relief to common people and increase consumption

Budget 2025-26: The Confederation of Indian Industry (CII) has given many important suggestions regarding the Union Budget for the upcoming financial year 2025-26. CII has stressed on reduction in excise duty on fuel and measures to increase consumption by targeting low-income groups. The organization believes that these steps will not only reduce inflation but will also boost the economy.

Main suggestions of CII

1. Reducing excise duty on fuel:

• Petrol and Diesel:
  • Central excise duty on petrol close 21% and on diesel 18% Is.
  • Crude oil prices from May 2022 40% reduction Despite this, there has been no change in these charges.

Importance:

• By reducing excise duty:
  • reduction in inflation Will come.
  • of consumers disposable income Will increase.

2. Revision of Income Tax Rates:

• Income up to Rs 20 lakh But suggestion of reduction in marginal tax rate.
• Highest Marginal Tax Rate:
  • currently 42.74%.
• Corporate Tax Rate:
  • current rate 25.17%.

Importance:

• Changes in income tax rates:
  • Consumption will increase.
  • There will be higher economic growth and increased tax revenues.

Relationship between inflation and consumption

Director General of CII Chandrajit Banerjee pointed out that inflationary pressure of lower and middle income groups purchasing power Has affected. They said that:

“Domestic consumption has been key to India’s growth journey. “Government intervention should focus on increasing disposable income and maintaining the momentum of the economy.”

Consumption voucher recommendation

What is consumption voucher?

• lower income groups will be targeted.
• This voucher is something specific goods and services Would be legal to spend on.
• Duration: For 6-8 months.

Objective:

• Increasing demand for goods and services in a limited period of time.
• Improvement in the economic condition of low income groups.

Suggestion for improvement in PM-Kisan scheme

CII has PM-Kisan Yojana The annual amount given to farmers under Increase from Rs 6000 to Rs 8000 Suggested to do.

• From this income in rural areas And consumption Will improve.
• This will help in strengthening the economic condition of the farming community.

Budget 2025-26: Potential impact

1. Control on inflation:

• Reduction in fuel prices will reduce production and transportation costs, which will reduce prices of daily-use items.

2. Increase in consumption and demand:

• Schemes like reduction in income tax rates and consumption vouchers will increase the purchasing power of consumers.

3. Rural Development:

• Increase in PM-Kisan Yojana will improve consumption and income of rural areas.

4. Speed ​​up the economy:

• Increasing domestic consumption will boost economic growth and government revenue will also increase.

Why are CII suggestions important?

CII has emphasized on providing relief to lower and middle income groups and encouraging domestic consumption in Budget 2025-26. These suggestions will not only provide relief from inflation, but Ease of doing business and India’s growth story Will also strengthen.