The Union Budget for the financial year 2023-24 was presented today by finance minister Nirmala Sitharaman. Announcing measures in personal income tax, relief to MSMEs, infrastructure boost to skill development, the budget captured almost all sectors of the economy.
Experts from different industries have reacted to the latest announcements made by the finance minister.
Vivek Gupta, Partner and Head, M&A and PE, Tax, KPMG in India, said, “Budget 2023 is an interesting balancing act by the FM. As the last full budget before the general elections, the focus is on continuity of policy and propelling sustainable growth, with a clear desire to increase investments in the economy. Manufacturing, agriculture and infrastructure emerge as the 3 focus sectors. On the tax side, the personal tax reduction is expected to place additional spending power in the hands of middle-class consumers. At the same time, there is clear focus on ease of doing business without dramatic tinkering on the corporate side. The PE and VC expectations perhaps need more debate and seem to have not been directly addressed in this Budget.”
Paritosh Kashyap, President & Head – Wholesale Bank, Kotak Mahindra Bank, said, “The key fiscal numbers are in line with expectations, and the seven priority areas identified are crucial to ensuring the holistic development of the country in an inclusive and sustainable manner. The measures announced to support MSMEs, primarily in terms of enhancing ease of doing business, but also in terms of technology training and social security, will be critical in accelerating the growth of India. ”
Dr. Ashutosh Raghuvanshi, MD & CEO, Fortis Healthcare, said, “The announcement of dedicated multidisciplinary courses for medical devices in existing institutions to ensure the availability of skilled manpower for futuristic medical technologies and high-end manufacturing will play a pivotal role in strengthening the healthcare sector. We also welcome the Mission to eliminate sickle cell anaemia by 2047 which will immensely benefit a large population. The government’s greater emphasis on R&D, innovation and results-based financing towards more effective PPP will prove to be beneficial in creating the much-needed shift towards quality and higher value.”
Srikanth Kandikonda, Chief Financial Officer, ManipalCigna Health Insurance, said, “The major announcements in the tax slabs by the finance minister will positively influence the salaried class in the country. Also, increase in the saving schemes for senior citizens and no tax for income up to Rs 7 lakh boosted the sentiments across young and vulnerable sections of the society. The new reforms proposed are expected to increase the disposable income in the pockets of the working class, which will result in higher savings, spends and investments.”
“In addition to these positive steps, if the government would have considered a reduction in the GST rate on health insurance premium and increased the limit of tax deduction for health insurance under section 80D, these initiatives would have further helped millions of people access quality healthcare at an affordable cost.”
“Nonetheless, this first budget of Amrit Kal has presented opportunities for the betterment of the citizens, which will definitely contribute towards the overall growth across the sectors, including insurance, and will improve the overall financial well-being of people at large.”
Vikas Singh, CEO and CO-founder, Sugmya Finance, said, “The revamping of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) will facilitate additional collateral free credit guarantee of Rs 2 lakh crore rupees. Also, the 64 percent increase in allocation for PM Awaas Yojana to Rs 79,000 crore is a positive step for making commercial vehicles and tractors used for moving construction materials more affordable.”
Akhil Chandna, Partner, Tax , Grant Thornton Bharat, said, “Reducing average tax return processing period from 93 days in financial year 13-14 to 16 days now; enhancing limits for the benefit under the presumptive taxation scheme applicable to MSMEs and professionals to Rs 3 crores and Rs 75 lakhs respectively; deploying around 100 Joint Commissioners for disposal of small appeals; rationalisation of the tax rates and slabs under the new tax regime are all moves in the direction of simplifying the tax administration and providing more disposable income in the hands of tax payers.”
Hiranand Savlani, Chief Financial Officer- Astral, said, “We are pleased with the measures taken to promote sustainable cities, as the finance minister said infrastructure growth has been offering multiplier effects in the economy. Also, the reforms in indirect taxes were straightforward which promote exports, encourage green growth, and most importantly boost domestic manufacturing. The initiatives introduced in the agricultural sector are remarkable and will help in adding value to the segment and overall economy.”
Prakash Chhabria, Executive Chairman – Finolex Industries added that the creation of agriculture infrastructure funds along with separate allocation for high-value horticulture will give the industry a much-needed boost. The industry would also gain from the 11% increase in the agriculture credit objective from Rs 18 lakh Cr to Rs 20 lakh Cr. We eagerly await the implementation of these measures and their impact on agriculture and farmer profitability.
This budget also highlights a separate focus on providing water connections & toilet facilities to households. This will spur demand in the plumbing and sanitation segment. Additionally, a hike in capital expenditure by 33 per cent to Rs 10 lakh crore for infrastructure development and the allocation of Rs. 79000 Cr to affordable housing will act as a catalyst for building, construction materials and allied sectors, Chhabria added.
Padma Priya J, Partner, Public Sector Consulting, Grant Thornton Bharat, said, “The most awaited thrust for urban sector has been announced and the creation of an Urban Infrastructure Development Fund will increase private sector interest for accessing borrowing. Encouraging ring fencing of user charges of urban services, will not only increase momentum in the municipal bond market as the credit worthiness of the Urban Local Bodies (ULB) will improve, but in addition ULBs can now accelerate PPP projects.”
Rakesh Kaul, Executive Director and CEO, Clix Capital, said, “The Digilocker services will be a boost to fintech startups as well, as up till now, DPI only allows individuals to store and share their certificates, such as academic records, driving licenses, and PAN cards. Further, the KYC process has also been simplified by taking a risk-based approach.”
Aman Dhall, Ex-Alumni Advisory Board, Loughborough University (UK), Sports Scholar & Team Owner, Gurgaon InCredibles at LastManStands, said, “With India considering bidding for the 2036 Olympics, the preparation needs to begin now, both from infrastructure and talent development perspective for India to step up towards achieving its sporting and active lifestyle ambitions.”
Atul Monga, CEO and Co-Founder, Basic Home Loan, said, “The increase in outlay for the PM Awas Yojana to Rs 79,000 crore will be a major boost for low-cost housing providers. While lakhs of people have already benefitted from the scheme, the announcement of its enhancement will be a positive step towards providing affordable homes to people and meet the existing housing shortage in the country.”
Sanjay Vyas, Executive Vice President, India Country Head, Parexel, said, “Encouraging clinical researchers to collaborate by providing ICMR facilities is an excellent initiative for bringing in diverse areas of expertise and enhancing ideas that can drive the development of new treatments and therapies that can have a positive impact on patient outcomes.”
Sushil Pasricha, Partner at Bain & Company, said, “In line with previously announced PLI schemes for pharma and life sciences companies, the government continues to promote research & innovation in the pharmaceuticals sector, through centres of excellence. Facilities in select ICMR labs will be made available for research by public and private medical facilities. This will bolster the sector further and make them move higher up the value chain in pharmaceuticals related research, development, and manufacturing.”
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