Budget 2025: High-level committee to review laws affecting businesses

Chennai: A day after the Economic Survey, which emphasised on deregulation and improving ease of doing business, the Budget proposed to set a high-level committee to review all non-financial sector regulations. The government will bring in the Jan Vishwas Bill 2.0 to decriminalize more than 100 provisions in various laws affecting businesses.

“A light-touch regulatory framework based on principles and trust will unleash productivity and employment. Through this framework, we will update regulations that were made under old laws,” the Finance Minister said.

A High-Level Committee for Regulatory Reforms will be set up for a review of all non-financial sector regulations, certifications, licenses, and permissions. The committee is expected to make recommendations within a year. The objective is to strengthen trust-based economic governance and take transformational measures to enhance ‘ease of doing business’, especially in matters of inspections and compliances.

While the states will be encouraged to join in this endeavour, the Budget also proposes launch of an Investment Friendliness Index of States this year to further the spirit of competitive cooperative federalism.

Under the Financial Stability and Development Council, a mechanism will be set up to evaluate impact of the current financial regulations and subsidiary instructions. It will also formulate a framework to enhance their responsiveness and development of the financial sector.

After decriminalizing 180 legal provisions in the Jan Vishwas Act 2023, the government will now bring up the Jan Vishwas Bill 2.0 to decriminalize more than 100 provisions in various laws, she said.

“Creating a high-level committee for regulatory reforms, aimed at reviewing regulations, certifications, licenses, and permissions will certainly help in ease of doing business in our sector,” said Shailesh Chandra, President, SIAM.