New Delhi, December 25 (IANS). Ahead of the Union Budget 2026-27, India’s apex industry body CII (Confederation of Indian Industry) has proposed a four-point strategy, which aims to stabilize and strengthen the country’s economy. This strategy is based on debt sustainability, fiscal transparency, revenue collection and spending efficiency.
According to the CII statement, the government should keep its debt at 50 per cent of gross domestic product (GDP) by FY 2031 (plus or minus 1 per cent). Also, the fiscal deficit (the difference between the government’s earnings and expenditure) should be kept at 4.2 percent only. With this, India’s economy will remain stable.
Second, according to CII, the government should prepare a 3 to 5 year fiscal plan that clearly outlines revenue, expenditure and debt. This will help the government to implement its schemes well and increase credibility.
Third, improving revenue collection is important for long-term financial sustainability. The tax-to-GDP ratio in India is still low (17.5 percent), which requires the government to curb tax evasion by using digital and AI (Artificial Intelligence). This will ensure proper collection of taxes and increase the number of taxpayers.
CII has also recommended the government to announce a 3-year privatization pipeline for public sector companies (PSEs).
Fourth, expenditure management, especially subsidy reform, is also an important part of the strategy. The government should implement the subsidy properly. For example, in PDS (Public Distribution System) the list of all the beneficiaries should be updated and ration should be given through cash or coupons, so that it reaches the right people.
Similarly, agricultural fertilizer subsidy should be extended to farmers through DBT (Direct Benefit Transfer). This will solve the problems of farmers and misuse of money will also reduce.
CII also suggested that states be encouraged to obtain State Development Debt (SDL) ratings from two reputed rating agencies and central capital expenditure support be linked to these ratings and disclosures to promote fiscal prudence.
Additionally, CII has proposed a SMART i.e. Systematic Modernization and Resource Transformation (SMART) mission, which will be based on the National Digital Urban Platform. It will strengthen municipal finance, administration and digital services, as well as ensure better delivery of equipment and services.
–IANS
DBP/ABM
