Budget 2023: Huge Capex to create great multiplier effect for economy; big boosts to ‘Make in India’ | The Financial Express

Budget 2023: Huge Capex to create great multiplier effect for economy; big boosts to ‘Make in India’

Budget 2023: FM scored in both the economic expansion line, as well as, relieving common man with higher personal disposable income in hand. This budget will enable domestic consumption growth, while boosting business and investment sentiment for corporates.

Budget 2023, Union Budget, Finance Minister
Finance Minister Nirmala Sitharaman in Budget 2023 expanded the capex of the government acknowledging its positive impact on promoting growth and crowding in private investment.

Finance Minister Nirmala Sitharaman unveiled Budget 2023 on Wednesday. In her Budget speech, the FM stated that this is the first Budget of the Amrit Kaal. FM highlighted that seven priorities will guide India through the next 25 years or Amrit Kaal. These priorities include inclusive development, reaching last mile, infrastructure & investment, unleashing potential, green growth, youth power, and financial sector. The government in Budget increased capital investment outlay sharply by 33% to Rs 10 lakh crores to push economic growth. This substantial increase is the government’s effort to increase growth potential, job creation, crowd in private investment, and provide a cushion against global headwinds.

Budget 2023 ticks all boxes; addresses growth, employment

According to Aniruddha Sarkar, Chief Investment Officer, Quest Investment Advisors Budget 2023 ticked all the right boxes when it comes to addressing issues of domestic economic growth, job creation, increase in household income, and fiscal balance. “The budget has definitely been a big sentiment booster for middle-class households who would see significant savings. The massive allocation towards capital expenditure will surely be the icing of this budget. There is nothing one can find negative in this budget announcement so far and this would be a gamechanger budget in my opinion for the next few years, he said.

Budget 2023: Make in India push continues

Make in India push also continued in this Budget in-line with the announcements in the previous few budgets. “Inverted duty structure has been addressed for some sectors too. Customs duty is proposed to be reduced across sectors from 21% to 13%. This is a welcome change. Relief by way of reduced customs duty on inputs meant for mobile phone production is also specifically proposed,” said Mahesh Jaising, Partner, Deloitte India.

Budget 2022: Huge Capex in infra to create great multiplier effect for economy

Infrastructure capital expenditure has been increased by 33% over last year which shows government’s continued focus on infrastructure development. “Hike in infrastructure development expenditure by 33% to 10 lac crores should boost the sector for overall economic development,” said Poonam Kaura, Partner-Government & Public Sector Advisory- Nangia Andersen LLP. This Capex push will enable economic growth as well as create more employment, according to Debashish Biswas, Partner Deloitte India. “Huge capital expenditure in infrastructure will create a great multiplier effect for the economy,” Biswas said.

Budget 2023 people-centric, aims to create job opportunities

The seven priorities highlighted in the Budget speech revolve around the people-centric agenda. With an emphasis on job creation (especially for the youth), and skill and education (with a focus on technology-related areas), this budget is aiming towards creating opportunities for a young, vibrant, and aspirational India, according to Rumki Majumdar, Economist, Deloitte India. “A 33% jump in capex spending suggests that the government means business, and it is willing to do whatever it takes to improve efficiency and competitiveness at par with its competing peers. This effort to build on the previous efforts will likely pull more investors and start a virtuous cycle of investments,” Majumdar said.

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First published on: 01-02-2023 at 13:32 IST