Budget 2023: Concern for treasury as well as path to growth – concern for the treasury as well as the path to growth in budget
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New Delhi: The budget presented by Finance Minister Nirmala Sitharaman was made in such a situation, when the world environment is looking uncertain and the growth rate is decreasing. On the other hand, India’s economy remains strong and is expected to grow at around seven percent. Tax collections are doing well, the debt on the balance sheet of the private sector has come down and the banking sector is seeing a lot of capital. This is a budget from a confident finance minister to a country brimming with hope.
The figure that will be quoted the most and will be remembered the most in this budget is the Rs 10 lakh crore capital expenditure figure. This is 33 percent more than the previous budget and has increased four times compared to FY 2016. Capital expenditure has an impact on the economy at many levels. This will also increase investment from the private sector.
The focus on fiscal discipline has also been maintained in this budget. The fiscal deficit for FY2024 has been kept at 5.9 per cent of GDP. This year it will remain at 6.4 per cent, it is said. Fiscal discipline ensures that the country’s borrowing cost does not go beyond a limit.
The government has maintained its emphasis on supporting the rural economy. The overall allocation for the Ministry of Rural Development and Agriculture in the budget is good. Support is being given to MSMEs for the last few years. The same thing is happening in this budget also. The government has talked about adding Rs 9,000 crore to the credit guarantee scheme fund. With this, MSMEs will be able to get more collateral free loans. It has also been proposed to reduce the interest rate by one percent. All this is very good thing for MSME.
There is a lot of emphasis on green growth in this budget. The focus has been on sustainable growth in all sectors. An allocation of Rs 35,000 crore has been made to promote energy transition i.e. use of fuel which helps in environmental protection instead of polluting fuel. Apart from this, there is also the matter of green credit program. These are positive steps for sustainable growth.
India also needs to move forward in the innovation chain. This will happen only when the government and private research and development, academia, startups and venture capitalists work together and create an ecosystem.
Budget preparation is a science as well as an art. It has to keep an eye on both the immediate needs and the long term goals. The budget should be such that it fulfills the expectations of all the people and sectors. The fundamentals of the economy should be kept strong and the budget should not fall into the trap of populist measures. The Finance Minister has done a wonderful job in this regard.
(The writer is CEO of Hindustan Unilever)
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