By Nitya Sharma

The Budget 2022-23 aims to build a digital and resilient economy by facilitating India’s vision at 100 years post-Independence with the collective effort ‘Sabka Prayas’ of all sections of society.

The finance minister elaborated on the government’s focus to complement macroeconomic growth with a micro-all-inclusive welfare approach, boosting the digital economy, encouraging fintech to flourish and maintaining a greater focus on tech-enabled development, energy transition and climate action.

Financial inclusion remains the priority

Recognising the importance of seamless online funds transfer via digital modes, one welcomes the finance minister’s announcements to cover 100% of 1.5 lakh post offices under the core banking system. This would further strengthen financial inclusion by facilitating access to accounts through net banking, mobile banking, ATMs, and allowing online transfer of funds between post office accounts and bank accounts. Farmers and senior citizens in rural regions would be key beneficiaries of this financial inclusion initiative.

Digital payments as a growth lever

Reiterating the crucial role played by digital payments, the FM has lauded the contribution of fintech players. To accelerate digital adoption, the FM has encouraged the proliferation of digital payments platforms that provide user-friendly and economical payments options. This was reflected in the continued financial support of Rs 1,500 crore to the digital payments space with an extension till 2022-23. The FM has also urged that villages and rural regions deserve to have access to the same digital resources as their counterparts in the urban areas. The introduction of the digital rupee via secure blockchain would be a landmark step in boosting the digital infrastructure and digital security within the country.

Mobile connectivity

Universal internet connectivity is the bedrock of a vibrant digital ecosystem and digital payments landscape. As a right step in this direction, the FM has expedited spectrum auction for the rollout of 5G mobile services by private telecom players in 2022 itself. Design-led manufacturing towards 5G would be included as part of the PLI scheme towards enabling affordable broadband and mobile communication in rural and remote areas with 5% of annual collection under USOs fund to be allocated as financial aid.

Start-ups as growth engines and job creators

Reaffirming support to the start-up community as enablers of Atmanirbhar Bharat, the FM has capped the surcharge on long-term capital gains arising on the transfer of any type of assets at 15%. This is expected to further attract investments in start-ups. The tax incentives for three consecutive years out of 10 years from incorporation has been extended with the period of incorporation of eligible start-ups being valid up to 31 March 2023.  The positive sentiments toward start-up success stories, with the FM formally recognising start-ups as the growth drivers of the Indian economy, would go a long way in further promoting entrepreneurship.

Credit offtake to augment entrepreneurship

It is well-known that adequate credit is the lifeline for business entities, especially SMEs. It is noteworthy that the FM has reaffirmed the government’s focus on credit facilities as a key proponent for formalising the economy and enhancing entrepreneurial opportunities for all. Revamping of the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme with additional funds infusion would expand the credit line up to Rs 2 lakh crore for micro and small enterprises and expand employment opportunities. The Emergency Credit Line Guarantee Scheme (ECLGS) has provided timely credit to more than 130 lakh MSMEs and helped them tide over the pandemic crisis.

Traversing the path of fiscal discipline towards economic resilience

The FM has reiterated the government’s commitment to balance fiscal rectitude with the achievement of growth objectives by pegging the fiscal deficit for FY23 at 6.4% of GDP and further containing the gap to 4.5% of GDP by FY26. With a 9.2% growth estimate for the current FY2022 and improved health infrastructure, the Indian economy is in a strong and resilient position to overcome all challenges, including black-swan events of a similar magnitude such as the pandemic.

The writer is CEO & Co-Founder, Simpl. Views are personal.