Union Budget 2025-26: CII Recommends 25% Hike in Public Capex and Tax Relief for Middle Class



Quick Summary
The Confederation of Indian Industry (CII) has put forward key recommendations for the upcoming Union Budget 2025-26. They are urging a significant 25% increase in public capital expenditure to stimulate economic growth and encourage private investment. Additionally, CII proposes tax relief measures for the middle class, including reduced personal income tax for those earning under Rs 20 lakh and lower excise duties on petroleum products, aiming to boost consumption.

The Confederation of Indian Industry (CII) has urged the Union government to increase capital expenditure by 25% in FY26 while adhering to the fiscal glide path. Speaking to a popular news portal on Wednesday, CII President Puri warned that curtailing public capex could suppress consumer demand and
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FAQ :

CII has recommended a 25% hike in public capital expenditure for FY26 to maintain economic momentum and encourage private sector investment.

CII suggests reducing excise duty on petroleum products and lowering personal income tax for individuals earning below Rs 20 lakh.

CII recommends targeted support for labour-intensive sectors like footwear and apparel, and finalising Free Trade Agreements (FTAs) with the UK and Europe.

CII has called for operationalising the government's ₹1 lakh crore innovation corpus to promote private sector research and development.

CII recommends building climate-controlled infrastructure near urban clusters and leasing it to small farmers at nominal rates to boost production and reduce price volatility.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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