Economy India

Budget Strengthens the fundamental pillars : FICCI

Commenting on the Union Budget 2022-23, Mr Subhrakant Panda, President, FICCI said, “FICCI congratulates the Hon’ble Finance Minister for delivering a balanced and progressive Union Budget which gives primacy to inclusive growth. The announcements made today capture the pulse of the economy while retaining credibility both in terms of projections as well as committing to the fiscal consolidation glide path. Most importantly, a historic outlay for public capex is a continuation of the heaving lifting since the time of the pandemic and will have a multiplier effect across myriad sectors of the economy besides crowding in private investment.”

“A push to investment and consumption was required to keep the growth cycle in motion. We are happy to note that the government has continued the thrust on capital expenditure with a 33% increase in the capital outlay to Rs 10 lakh crore representing 3.3% of GDP. This is a step in the right direction amidst a global economic situation which is still not at ease. Moreover, the revision in tax rates under the new regime will augur well on the consumption side,” added Mr Panda.

“We also compliment the government on meeting the fiscal deficit target for the current financial year despite persisting uncertainty; this lends credibility to the budget. Moreover, by projecting a 5.9% fiscal deficit for 2023-24 and reiterating the commitment to bring it below 4.5% by 2025-26, the Finance Minister has imparted confidence that growth remains a priority without compromising on fiscal consolidation,” said Mr Panda.

“The announcements made today further strengthen the fundamental pillars and ensure resilience, inclusivity and sustainability. The government is committed to ensuring manufacturing competitiveness, ease of doing business, reducing compliance touch points, and supporting livelihoods across sections. This indicates a continuation of the good work the government has done, and puts in motion an action plan for Amrit Kaal,” added Mr Panda.

Mr Panda stated, “Even as India offers a ray of hope in the current global context, we are not decoupled from the rest of the world. We laud the Government’s promise to make India exports competitive given that a slowdown in growth globally could have an impact. In this context, some incentive to support exports would have been timely.”

“The support contained in the budget for the MSME sector is welcome. The revamped credit guarantee scheme for MSMEs will benefit from an infusion of Rs 9000 crores enabling credit flow of Rs 2 lakh crores with a 1% lower cost. promoting cooperative-based economic development model for farmers is a practical move. The plan to set up a decentralized storage capacity is encouraging for farmers as it is likely to lead to better price realizations,” said Mr Panda.

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