V Anantha Nageswaran.
Credit: PTI Photo
New Delhi: The cut in income tax and other measures announced in the Union Budget 2025-26 will boost consumption and reduce demand uncertainty, which is crucial for private investment, Chief Economic Advisor V Anantha Nageswaran said on Monday.
Speaking at a post-budget event organised by Confederation of Indian Industry (CII) Nageswaran said addressing the concerns related to geo-political and geo-economic uncertainties have also been the driving force behind several of the decisions taken in the budget.
“The current state of the world, in terms of geopolitical and geo-economic uncertainties, is very much the driving force behind many of the proposals you see in the Budget, including the widely discussed tax cut and the revision of tax slabs given to various individual income taxpayers,” he said.
On private sector investments, Nageswaran said, “The private sector has indeed been investing. Maybe the pace is not as much as one would have liked to see.” He added that the Ministry of Statistics and Programme Implementation would release data later this month that would give clarity about private investments.
Speaking at the event, Finance and Revenue Secretary Tuhin Kanta Pandey urged the industry to unleash “animal spirit” to boost investments, which was crucial for propelling growth and jobs. “The government is ready to lend its assistance in whichever way possible to resolve any concern impacting industry,” Pandey said.
Earlier, speaking at a post-budget interactive session organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), Pandey underlined the need for rationalisation of goods and services tax (GST) rates.
“Rationalisation is needed. There is recognition that it is needed. But how exactly it will be able to translate and what are the numbers, we will be able to arrive at, which are the rates we will be able to arrive at, that further exercise will be done by GoM (Group of Ministers),” Pandey said.
Union Budget 2025 | Nirmala Sitharaman, as Finance Minister, presented her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', the Modi govt gave income tax relief for those making up to Rs 12 lakh per year in salaried income. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.