The Union Budget 2023 was tabled on Wednesday by the Finance Minister of India. The budget presented by Nirmala Sitharaman attempts an inclusive growth structure for the economy through various measures that are expected to reach the last mile.
Bankers say that it is a Capex-Heavy, growth-oriented and progressive Budget. It has made noteworthy announcements for the MSME sector, affordable housing, middle-class tax paying people, job creation, etc.
Here’s what the Bankers say for Union Budget 2023 :
Uday Kotak, CEO, Kotak Mahindra Bank
Budget with vision, structure, discipline. Immediate benefits to all individual earners. Continues measured path of fiscal consolidation. Sets foundation to increase every Indian’s per capita income exponentially from 1.97 lakhs( 2400$). True to its name: 1st budget for Amritkaal.
Prashant Kumar, MD & CEO, YES Bank
The Union Budget 2023 attempts an inclusive growth structure for the economy through various measures that are expected to reach the last mile. The effective capex of the Central government was enhanced to INR 13.7 Lakh crores, or 4.5% of the GDP was an acknowledgment that capital expenditures are crucial for the economy and could boost the growth.
As the efficiency of capital expenditures is higher at the state level, the government once again earmarked INR 1.3 lakh crores as a 50-year loan to States, which would incentivize capital expenditure. ECLGS scheme continues with an additional INR 9000 crore added to the corpus which would boost the fund flow for the MSME sector.
Chandrashekhar Gosh, MD & CEO, Bandhan Bank
Budget 2023-24 is a well-rounded progressive & inclusive budget. The focus on important parameters like boosting consumption and inclusion is a welcome measure for our growing economy. The government has laid an important thrust on Capital Investment which will enhance consumption and create employment, both of which have been important areas of attention, especially post the pandemic. Allocation of the Budget to PM Awaas Yojana will further boost the housing sector.
Support to MSME sector along with enhancement of credit gaurantee scheme will provide much needed relief to the sector. The new slabs of taxes will further help boost economic parameters like consumption, thus providing more impetus to economic growth.
Murali Ramakrishnan, MD and CEO, South Indian Bank
This year’s Union Budget is noteworthy on a number of counts. Effective implementation of schemes like opening of 47.8 crore PM Jan Dhan bank accounts will benefit common citizens. With the establishment of the Urban Infrastructure Development Fund (UIDF), we expect infrastructure in tier 2 and tier 3 cities receiving a significant boost.
The enabling of the Digital locker for MSMEs for securely storing and sharing documents online with various authorities, regulators and other entities will encourage seamless business.
PN Vasudevan, MD & CEO , Equitas Small Finance Bank
The Budget is growth-oriented with a planned capital outlay of ₹ 10 Lakh Crore and a higher allocation for the PM Awaz Yojna Scheme which would spur the housing finance market and all its upstream and downstream industries.
It has a fillip for the rural economy in the form of higher fertiliser subsidies for the farmers, putting more money in their hand. With improved road connectivity, this is expected to improve money flow in the rural economy. The Government has also done an extraordinary job of maintaining the fiscal prudence, riding on strong tax collection.