The Union government has to take a ‘balanced approach’ to tackle the growing fiscal deficit while continuing to nurture the economy, Toyota Kirloskar Motor said in a pre-Budget expectation statement.
Constrained by the unprecedented scale of the COVID-19 crisis, the government had to make several unplanned expenditures towards healthcare and social sectors in addition to taking other measures to mitigate the impact of the pandemic on the economy.
“Going forward, the government has to take a balanced approach to tackle the growing fiscal deficit while continuing to nurture the economy,” the Japanese carmaker’s unit said.
The government’s focus on a faceless tax assessment scheme, aimed at enhancing transparency and building confidence in the system, would improve revenue collection and add to the ease of doing business, it noted.
“We feel the government should further continue to strengthen these measures for lasting benefits,” it said.
Through Production Linked Incentive Scheme (PLI) for several key identified sectors, the government had sought to transform the economy by attracting investments, especially in import-dependent industries.
“These measures will help create a vibrant and competitive local manufacturing ecosystem for advanced and green technologies at global scales.
“We hope these benefits will also trickle down the entire supply chain thereby boosting the growth of our MSMEs,” the company said.