The Finance Ministry will hold pre-budget consultations with apex industry associations from December 14.
The first round of consultations will happen with industry chambers CII and FICCI on that day. The Finance Secretary, Mr R.S. Gujral, will separately meet representatives of these two chambers, sources said.
Mr Gujral is also expected to hold a pre-budget meeting with Assocham on December 16. India is likely to adopt a new direct taxes code from April 1 next year.
This year's pre-budget consultation comes at a time when the economy is faced with stiff challenges such as high inflation, depreciating rupee and likely slippage in fiscal deficit targets.
Despite strong monetary tightening, headline inflation continues to be around 9 per cent, which is cause for worry. The Finance Minister, Mr Pranab Mukherjee, has already hinted that too much focus on achieving fiscal deficit target may not help as it may impact growth.
The Centre has pegged the fiscal deficit target for 2011-12 at 4.6 per cent of GDP. This target is unlikely to be met given the increased spend on food, fuel and fertiliser subsidies. The Finance Minister on Friday sought Parliamentary nod for additional expenditure of Rs 63,180 crore, including a net cash outgo of Rs 56,849 crore.
The Government has also not been able to make much headway on achieving disivestment target. Till date, the Centre has mobilised only Rs 1,144 crore as against target of Rs 40,000 crore for the current fiscal. The Government is confident of achieving this target although only about four months remain for the current fiscal to end.