Budget 2026: CII presents a 4-point strategy to reduce debt and curb tax evasion.

CII pre-budget recommendations for FY27: Ahead of Budget 2026, the CII has offered the government tips on strengthening the economy. The organization has made four major recommendations for reducing debt, curbing tax evasion, and improving spending.

Add businessleague.in as a Preferred Source

India Economic Stability Strategy by CII: Preparations for Budget 2026-27 have begun. In this context, the country’s leading industry organization, CII, has submitted a specific plan to the government. The plan aims to make India’s economy stronger and more stable. The organization has recommended focusing on four key areas.

Focus on reducing government debt

CII believes that controlling debt is essential for the country’s economic health. The organization recommends limiting government debt to 50% of GDP by 2031. Furthermore, it has called for a target of reducing the fiscal deficit, or the gap between revenue and expenditure, to 4.2% by fiscal year 2027.

Transparency will increase trust

The industry wants the government to be absolutely clear about its financial plans for the coming years. CII has proposed that the government should develop a concrete financial plan for 3 to 5 years. This plan should include complete details of revenue, expenditure, and debt. This will bring transparency to government operations and increase public trust.

Use of AI to prevent tax evasion

India’s tax-to-GDP ratio currently stands at 17.5%, which needs to be increased. According to CII, the government should leverage modern technology, such as artificial intelligence (AI) and digital tools, to curb tax evasion. This will increase the number of tax payers and generate more revenue for the government treasury.

Subsidies and spending reform

The fourth major component of the strategy is managing expenditure effectively. CII has recommended that the government reform the subsidy system. The organization argues that subsidy benefits should reach the right people directly. This will prevent wasteful expenditure and ensure that government funds are used effectively.

Add businessleague.in as a Preferred Source