Recently, the chairperson of Prime Minister Narendra Modi’s Economic Advisory Council (EAC-PM), Bibek Debroy spoke about the tax and spending reforms that would be in focus for the Budget of the next financial year. As the general elections will take place in the country next year ahead of the budget presented in the Parliament, the chairperson of EAC-PM said the full-year budget of the next financial year will focus on expenditure reforms and encourage individuals and businesses to shift to the new exemption-less simplified tax regime. Since Bibek Debroy shared his views on the FY25 budget, people have been scrambling to the internet to read what he further asserted. You are suggested to stick with this page and go through this article till the end. Drag down the page.
During an interview the chairperson of Prime Minister Narendra Modi’s Economic Advisory Council, Bibek Debroy, said the terms of the 16th Finance Commission will take the final call on the sharing of the Centre’s divisible pool of taxes with states for the five years will come out before the full-year budget is presented. His statement indicated overall expenditure reforms are needed at both central and state levels. Bibek Debroy also added the economy of India is growing in the range of 6.5-7 percent.
Notably, the expenditure by the government is working to boost the growth rate of the Indian economy while the other factors that lead to economic growth are private investment, net exports, and consumption. One questioned what issue the Union budget should address in the budget. However, this answer can not be answered at this time because if we say the budget should focus on, that means we are suggesting that whatever the budget was concentrating on earlier was wrong and unuseful.
The second reason why we can not answer what the next Union budget should focus on is we do not know what the electoral cycle will be which is dependent on the EC and others. When we talk about next year’s Union budget, whenever it is, the two things that will stand out are what is done on indirect tax and direct tax reform which is essentially with the GST Council and expenditure reform. Thus, we need to reform what the states spend on and the way states spend. Stay tuned to this website for more details and updates.