The Union Budget 2022-23, presented by finance minister Nirmala Sitharaman, is not only impressive, it is pro economy, pro nation, says Sanjiv Goenka, chairman of the RP-Sanjiv Goenka Group.
The budget is expected to get the economy back on track with its focus on infrastructure and investments. “A huge emphasis on investments, on infrastructure, on suvidha to the common man and a furtherance of the simplification of rules and ease of doing business,” says Goenka.
In a big bang move to revive the economy after three waves of the Covid-19 pandemic, finance minister Nirmala Sitharaman announced an allocation of ₹7.5 lakh crore towards capital expenditure for 2022-23. This is 35.4% higher than the ₹5.54 lakh crore allocated to capital expenditure last year.
“Focus on infrastructure is well appreciated. Government capex which goes up to ₹7.5 lakh crore shows intent,” says Goenka. “There are many pointers, which show the finance minister’s desire to propel investments, to create infrastructure, to create jobs and she is sensitive to the requirements of the aam aadmi.”
The production linked incentive (PLI) announced by the government in 14 sectors will create 60 lakh jobs and has potential to generate ₹30 lakh crore in production over the next five years, the finance minister had said in the Lok Sabha.
“Growth has been prioritised with a stable tax regime,” says Goenka. The Union Budget didn’t change the existing tax structure.
The government expects the fiscal deficit to be 6.4% of the GDP in the financial year 2022-23, compared with the revised estimate of 6.9% in FY22. “Fiscal deficit at 6.9% is in line with expectation,” adds Goenka.
The Union Budget has also provided a significant impetus to the digital ecosystem. “It’s a Budget which lays the foundation for an open, digitised India,” adds Goenka.
