In order to tackle the problems of rising fiscal deficit, India's new government has to raise Rs.3-lakh crore from divestment of its resources, disinvestments of equity in Public Sector Units and bring back the excise slabs to over 14% from the present 8%, said the Assocham President, Sajjan Jindal.
Jindal said that the fiscal deficit would grow to startling levels in the coming weeks and opined that excise is the major source of taxes for government. He also said that the new government would restore the excise slabs to encourage the economy. He felt that reducing excise duty might be a temporary relief extended to India Incorporation to face the impact of the global economic slowdown.
He further said that the new government would have to divest its resources and make required funds available to the Indian industry to restart its Greenfield projects, mostly in infrastructure sectors.
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