MC-Deloitte CEO survey: 46.7% CEOs expect tax simplification, revenue augmentation to be govt’s reform agenda in Budget 2025

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The upcoming budget would focus on reforms to simplify tax, augment revenue and bring in energy transition reforms to increase share of non-fossil fuels in country’s energy basket, a Moneycontrol- Deloitte survey showed.

An exclusive Moneycontrol-Deloitte survey of 45 CEOs conducted between January 10 and January 22 across financial services, consumer goods, technology, and energy sectors showed that 46.7 percent of the respondents anticipate such transformational reforms to be the government’s reform agenda.

Reforms such as simplification of tax structure in the country has been a long-standing ask of the industry. Expectations are high around introduction of Direct Tax Code (DTC) in the budget—which aims to make India’s tax system more user-friendly.

Similarly, as India progresses towards its goal of achieving net-zero emissions by 2070, reforms to accelerate energy transition to increase share of alternate fuels such as green hydrogen, compressed biogas, nuclear are expected to find a place in the Budget 2025.

A significant number of the CEOs, 28.9 percent, anticipate fresh reforms encompassing tax code restructuring, promoting private investment, endorsing green financing mechanisms. Fresh reforms are the ones that have not been announced in the last 10 years.

Amid India’s slowing growth in the recent quarters, the corporate leaders expect announcements from the Union Budget 2025—to be presented by Finance Minister Nirmala Sitharaman on February 1—to support county’s economic growth to meet the aim of Viksit Bharat by 2047.

Populist measures such as subsidies, cash transfers and welfare programmes are also likely to be on the government’s agenda. Around 11 percent of respondents believe populist measures would be on the government’s reform agenda.

The Indian government is expected to increase spending on subsidies for food and cooking gas in line with rising costs. Several central subsidies such as crop insurance subsidies for farmers, food subsidy Antodaya Anna Yojana (AAY) are already in place.

Meanwhile, 13.3 percent of the CEOs see the pace of overall economic reforms to slow.