Hike Farmer Income Support, Raise Peak Tax Threshold: FICCI

New Delhi: The recent slowdown in the economy stem not only from slow investment growth and subdued exports but also from weakening growth in consumption demand, the Federation of Indian Chambers of Commerce and Industry (Ficci) has told the Finance Ministry

In a pre-Budget 2019-20 memorandum to the ministry, Ficci has warned of long-term repercussions if the serious concerns on the economy are not addressed urgently.

“Indian economy now faces the risk of slow growth amidst a weakening global economic environment and slowdown in domestic demand. Amidst the rising uncertainties and economic challenges on both domestic and global fronts, there is an urgent need to re-energise the engines of growth and pump prime the economy,” the Ficci memorandum said.

“The recent signs of slowdown in the economy stem not only from slow growth in investments and subdued exports but also from weakening growth in consumption demand. This is a matter of serious concern and if not addressed urgently, the repercussions would be long-term.”

For addressing agrarian distress and reviving the rural economy, the chamber has sought an extension and hike in the Interim Budget 2019-20’s Direct Income Support (DIS) of Rs 6,000 annually to small and marginal farmers.

“It is suggested that the quantum of this support as well as the coverage of the scheme be expanded. The existing agriculture subsidies should be reviewed and most/all of them be included within the DIS.

“To enhance agriculture yields and mitigate risk of monsoon vagaries, the government should step up investments in irrigation,” it said.

“Farmgate and near-farmgate storage should be developed on priority under the Rashtriya Krishi Vikas Yojana (RKVY) and rural development schemes to enable small producers to hold produce till market prices are remunerative enough to sell.

The chamber has also sought raising income threshold for application of the peak tax rate of 30 per cent. (IANS)

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