The country is expanding investments in modern capex, digitalisation, skilling for youth and expanding support and opportunities for all…reports Asian Lite News
The Union Budget 2023-24 has done well for developing and enhancing the digital talent pool in the country that will help fully realise our demographic dividend, industry leaders said on Monday.
The country is expanding investments in modern capex, digitalisation, skilling for youth and expanding support and opportunities for all.
Vijendra Katiyar, Country Manager, India and SAARC at Trend Micro said that the budget places a strong emphasis on talent development, digital skills training, and upskilling.
“This is in response to India’s current situation where only 48.7 per cent of the country’s youth are considered employable and many companies report a skill gap. The budget includes the launch of PMKVY 4.0, which is aimed at training a large number of youth in emerging technologies such as AI, robotics, mechatronics, and IoT,” Katiyar emphasised.
Sandip Patel, Managing Director, IBM India/South Asia, said that the budget will prepare youth for international opportunities and take skilling to the last mile through setting up of 30 Skill India International Centres across states.
“The government’s proposal to set up 100 labs across engineering institutions to develop applications for 5G services will go a long way in developing cutting edge ICT services in India, for India and for the world,” said Patel.
According to Chocko Valliappa, Vice Chairman, Sona group of Education Institutions, Salem the series of pathbreaking moves to deploy digital technology in education for young children, school and college students as also training of teachers will give a fresh stimulus to MOOCS, NPTEL on Swayam platform.
“The launch of re-imagined Skilling 4.0 and the newly minted Vishwakarma Kaushal Samaan initiative will help build capacity, train youth to pick industry relevant skills and preserve age old crafts thus ensuring livelihood for millions in the coming years,” said Valliappa.
As India is looking up to rise in the global supply chain and become a technology hub, the budget has allocated huge amounts for digital infrastructure and skilling of the young human resources in emerging technologies…reports Asian Lite News
Provisions of India’s Budget for FY 2023-24 show the country’s firm resolve to play the role of engine of growth for the sagging global economy. This is why India was earlier described by multilateral agencies as a bright spot amid global economic uncertainty and looming recession and Russia-Ukraine War further hurting the prospects of post pandemic economic recovery.
The International Monetary Fund’s (IMF) January 2023 World Economic Outlook Update projected a decline in global growth to 2.9 per cent in 2023 and a marginal improvement to 3.1 per cent in 2024. The forecast is 0.2 percentage point higher than predicted in the October 2022 but below the historical average of 3.8 per cent. Rising interest rates and the war in Ukraine continue to weigh on economic activity. But the update of IMF on Indian economy was still upbeat projecting a growth rate of 6.1 per cent slightly less than earlier forecast for FY 2023-24, and 6.8 per cent for FY2024-25.
Amid these uncertainties and pressures, India has acted as a beacon for the global economy by maintaining its growth momentum and the budget for FY 2023-24 raises hope that India would continue to maintain its growth momentum with a proposal for capital expenditure to the tune of Rs 10,000 crore in the ensuing year.
The acumen to maintain a high level of capital expenditure amid the continued effort of the government of India for fiscal prudence and financial consolidation is not only commendable, but a model many of the developing and developed countries could emulate. The FY 2023-24 budget shows that while India is traversing well on the path of fiscal prudence and consolidation as envisaged in India’s long and intermediate terms fiscal policy, it is also maintaining its commitment for the same in immediate and short terms.
MGNREGA.
The Union Budget 2023 has set the fiscal deficit target for the upcoming fiscal year at 5.9 per cent of gross domestic product (GDP). The proof of government’s success in remaining on the path of fiscal consolidation as conceived in India’s Fiscal Regulation and Budget Management Act (FRBM Act) lies in the fact that the Government of India succeeded in maintaining the target of 6.4 per cent of GDP in the current fiscal year. Even if a risk of possible fiscal slippage in the ensuing fiscal year is apprehended as general election campaigning begins in 2024, the recent success in meeting deficit targets shows that the risk is smaller than in the past.
The government has not shied to pursue fiscal prudence even in view of an election year in 2024. The evidence to that is rationalisation of expenditure of flagship rural employment assurance programme under Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA). The Budget has proposed to earmark only Rs 60,000 crore for implementing the rural job scheme in 2023-24. The allocation for the rural job scheme for the next financial year is 17.80 per cent lower than the budgetary estimate of Rs 73,000 crore for 2022-23. Although, depending upon demand for such jobs MNREGA provides remaining sluggish has cut down the allocation to the programme as a rationalisation move, the government officials have made it clear that if demand for such jobs under MNREGA increase, it would allocate additional fresh supplementary budget to the head. This and other expenditure rationalisation moves helped the government to stick to the fiscal deficit roadmap as stipulated in the FRBM act.
Despite being politically unpopular, the Budget FY23-24 has cut down food subsidy to drop to around Rs 1.97 trillion, which is 31.28 per cent lower than the Revised Estimates (RE) of FY23, while fertilizer subsidy is projected to dip to around Rs 1.75 trillion, which is 22.25 per cent less than the Budget Estimates (BE) of FY23. In FY23, the Union Government had budgeted food subsidy at Rs 2.06 trillion while the RE showed it bulged by almost 39 per cent to Rs 2.87 trillion as the Government persisted with the free grains scheme for the first nine months of 2023. As situation caused by pandemic has eased, the step has been taken for fiscal prudence.
But to ensure that these efforts for fiscal prudence do not disturb growth of the agriculture sector, government has proposed to increase the agriculture credit for the next fiscal year to Rs 20 lakh crore, with focus on animal husbandry, dairy and fisheries, from Rs 18 lakh crore for FY22-23.
Government has pinned its hopes on generation of employment for the largest working population of world by maintaining a high growth rate through capital expenditure (capex) in infrastructure and energy sector. The Union Budget for 2023-24 has been lauded for being bold in its vision as the Finance Minister (FM) ramped up capex by 33 per cent to Rs 10 lakh crore at 3.3 per cent of GDP. This is a positive move that will support economic growth and help crowd in private investment. Even the break up of allocation to various infrastructure heads and allocation to energy sector is heartening. The budget has focused on improving physical and digital infrastructure.
It could go a long way in generating big backward linkages and forward linkages and also multiplier effects to eventually create huge employment.
Investment on infrastructure remains a major thrust of the budget. While the Ministry of Road Transport and Highways has been allocated a capital budget of Rs 2.58 lakh crore, the Railway Ministry has been given Rs 2.4 lakh crore and the Defence Ministry has been allocated Rs 1.71 lakh crore. The Department of Telecommunications, which is leading the 5G rollout in the country, has been allocated Rs 61,000 crore for capital expenditure. This would help growth in many industries which provide intermediate goods for road-rail development like iron & steel, cement, telecommunication and electric goods & equipment.
One of the most remarkable features of the budget 2023-24 is that it focuses on sustainable energy and development. India has become the first country among the developing countries and emerging markets to allocate a huge amount on green energy. The budget has allocated Rs 35,000 crore for ‘priority capital investments’. The Indian FM called for pursuing ‘green growth’ and remarked that it would remain one of the country’s top priorities for the year. Besides, it is also commendable that the budget proposed an ambitious plan for alternative energy and allocated a mammoth amount in the budget for the same.
In her budget speech, FM Nirmala Sitharaman said, “These green growth efforts help in reducing carbon intensity of the economy and provide for large-scale green job opportunities.” The Ministry of Environment, Forest and Climate Change (MoEFCC) got a budgetary allocation of Rs 3,079.40 crore this year, a slight increase from last year’s Rs 3,030 crore.
The budget continued its thrust on the National Green Hydrogen Mission announced last year and allocated an outlay of Rs 19,700 crore. The mission “will facilitate transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports, and make the country assume technology and market leadership in this sunrise sector.”
To facilitate the production of electric vehicles, the budget extended on customs duty exemption to incentivise import of capital goods and machinery required for manufacture of lithium-ion cells for batteries used in electric vehicles.
In line with the ‘Lifestyle for the Environment’ (LiFE) mission announced by Prime Minister Narendra Modi in 2021 – which aims to promote sustainable lifestyles – the government will implement a ‘green credit’ programme to inspire behavioural change. “This will incentivize environmentally sustainable and responsive actions by companies, individuals and local bodies, and help mobilise additional resources for such activities.”
The Union Government showed its concern on waste management also in the budget 2023-24. To ‘promote a circular economy’, the government will set up 500 ‘waste to wealth’ plants at a cost of Rs 10,000 crore, 200 of which will be compressed biogas plants. A majority of these ‘waste to wealth’ plants – 300 – are envisioned to be in rural areas. In the budget speech, the FM also said that the government will incentivise the use of ‘alternative fertilisers’ to balance the use of chemical ones, as well as promote ‘natural farming’. India’s agriculture sector is the second largest emitter, accounting for 16 per cent of India’s emissions, after electricity.
The push for such schemes to speed up India’s sustainable development comes at a time when it is set to achieve net-zero carbon emissions by 2070. India is currently the world’s third-largest emitter and will rely heavily on ramping up renewable energy and green hydrogen fuel to decarbonise in line with its objectives.
As India is looking up to rise in the global supply chain and become a technology hub, the budget has allocated huge amounts for digital infrastructure and skilling of the young human resources in emerging technologies. The budget has allocated Rs 10,676.18 crore this year for ‘Digital India’ programme, up from Rs 6,388 crore last year. Already India is considered to be one of the leading countries in the world which has produced many digital public goods which go a long way in improving efficiency in public service and welfare delivery.
The Budget envisions a technology-driven and knowledge-based economy with strong finances. Some of the focus areas to achieve this are artificial intelligence (AI), adopting open source software, and opportunities from the 5G internet. The government plans to deploy digital solutions in all its seven priority areas – from infrastructure and last-mile delivery to the financial sector.
The skill-development initiative scheme, Pradhan Mantri Kaushal Vikas Yojana 4.0, has been extended to provide new-age courses for Industry 4.0 like coding, AI, robotics, mechatronics, IOT, 3D printing, drones, and soft skills. The budget envisaged setting up three centres of excellence in AI in top educational institutions to develop ‘cutting-edge’ applications and scalable solutions in agriculture, health and sustainable cities.
Leading industry players will also partner in interdisciplinary research aimed at building an effective AI ecosystem and nurturing quality human resources in the field. The Budget has proposed to set up 100 labs in engineering institutions to realise a new range of opportunities, business models, and employment potential in the high-speed 5G internet. The allocation to the Ministry of Electronics and Information Technology (MeitY) stood at Rs 14,300 crore as against Rs 9,581.25 crore in 2021-22 and this year’s budget would continue the same focus on it.
The Budget said digital public infrastructure would be built for agriculture as an open source, open-standard, and interoperable public good. The inclusive, farmer-centric solutions platform will be developed similar to the Unified Payments Interface (UPI). The Centre has already initiated the computerisation of 63,000 primary agricultural credit societies (PACS) with an investment of Rs 2,516 crore.
The budget harbingers ‘India miracle’ that is going to happen in the following decades when India would not only become the ‘Industrial Hub’ and the ‘Technology and Innovation Hub’ of the world, but also a $10 trillion economy by 2030 and the biggest economy of the world by 2050. If the start-up development and growth and ecosystem in India is seen, there should not be any doubt that the country is today very fertile for innovation and investment.
As of September 2022, India is home to 107 unicorns with a total valuation of $340.79 billion. According to the India Venture Capital Report 2021 published by US-based Bain and Company, the number of cumulative start-ups has grown at a CAGR of 17 per cent since 2012 and crossed Rs 1,12,000 crore. The budget has proposed several incentives for the start-ups as well.
Already India has become the 5th largest economy of the world due to right policy mix and political stability. In the days to come, India would also be the centre of many supply chains with the help of the innovative policy initiatives and firm resolve to go extra mile to realise the ‘Indian Dream’. Today it has the largest young and working population in the world and Prime Minister Narendra Modi’s effort is to educate and engage them productively. He believes that when millions of hands work together, India would actually realise the goal of inclusive growth in the shortest time.
The government announced an outlay of Rs 19,700 crore for the recently launched National Green Hydrogen Mission.
Keeping pace with the green energy focus of the world and reducing its carbon intensity, India has planned big for the green energy sector in its financial budget.
The government announced a slew of measures for the initiatives related to green fuel, green farming, green mobility, green buildings, and green equipment. Also since India has an ongoing G20 Presidency, its focus on green energy will have a better impact.
The government announced an outlay of Rs 19,700 crore for the recently launched National Green Hydrogen Mission, which it said will facilitate the transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports and make the country “assume technology and market leadership in this sunrise sector”.
It has a target of the annual production of 500 MMT (million metric tonnes) of green hydrogen by 2030, reported The Hindu.
Union Finance Minister Nirmala Sitharaman presents the Union Budget 2023-24 in the Lok Sabha, in New Delhi,on Tuesday, Feb. 1, 2023. (Photo:IANS/Sansad TV)
“The Union Budget presents a positive outlook for the renewable energy sector in India. The allocation of Rs 35,000 crore towards the green energy transition is a step in the right direction and demonstrates the nation’s will for a sustainable future,” commented Girish R Tanti, Vice Chairman, Suzlon Energy.
“The government’s commitment to increasing the use of renewable energy in the country is commendable and will play a crucial role in reducing carbon emissions and mitigating the impact of climate change. The National Green Hydrogen Mission will complement our efforts towards net zero,” he said.
The budget provides Rs 35,000 crores for priority capital investment toward energy transition, net zero objectives, and energy security the Union Ministry of Petroleum and Natural Gas.
Industry body ASSOCHAM’s Secretary General Deepak Sood said, “Boost to transition through definite programmes for financing green energy with the help of flagship programmes like National Green Hydrogen Mission, grid integration of the renewable energy and promoting electrification of the automobile industry are the ‘stand out features of the Budget'”.
India’s energy demand is expected to increase more than that of any other country in the coming decades due to its sheer size and enormous potential for growth and development.
Indian Prime Minister Narendra Modi with Denmark counterpart review Green Strategic Partnership.
Therefore, it is imperative that most of this new energy demand is met by low-carbon, renewable sources. India’s announcement India that it intends to achieve net zero carbon emissions by 2070 and to meet 50 per cent of its electricity needs from renewable sources by 2030 marks a historic point in the global effort to combat climate change.
The Indian renewable energy sector is the fourth most attractive renewable energy market in the world. India was ranked fourth in wind power, fifth in solar power and fourth in renewable power installed capacity, as of 2020.
Installed renewable power generation capacity has gained pace over the past few years, posting a CAGR of 15.92 per cent between FY16-22. India is the market with the fastest growth in renewable electricity, and by 2026, new capacity additions are expected to double, according to India Brand Equity Foundation.
“With India holding the Presidency of the G20 till Nov 2023, the focus on adopting green energy, and efforts to enhance BioCNG bodes well. We are pleased with the focus that the Budget has had for our industry, in particular, esp. from the point of view of scrapping old/polluting vehicles, stressing the need to segregate waste and more importantly make and prep the cities to raise funds from the Municipal Bond market. The main theme reiterates the Country’s focus on adopting sustainable technologies, and higher focus on generating green energy,” said Jose Jacob Managing Director of Antony Waste Handling Cell.
PM Modi receives traditional welcome during his visit to Nagpur, in Maharashtra (PIB)
As of October 2022, India’s installed renewable energy capacity (including hydro) stood at 165.94 GW, representing 40.6 per cent of the overall installed power capacity.
The country is targeting about 450 Gigawatt (GW) of installed renewable energy capacity by 2030 – about 280 GW (over 60 per cent) is expected from solar. (ANI)
Budget Boost to MSMEs: Rs 9,000 crore for revamped Credit Guarantee Scheme.
To support MSMEs in timely receipt of payments, Sitharaman further proposed to allow deduction for expenditure incurred on payments made to them only when payment is actually made…reports Asian Lite News
Giving significant boost to MSMEs, the Union Budget 2023-24 has proposed to continue the financial sector reforms and innovative use of technology which have led to ease of access to credit and participation in financial markets.
Finance Minister Nirmala Sitharaman on Wednesday announced that the revamped credit guarantee scheme for MSMEs, proposed in the previous Budget, will take effect from April 1, 2023 through infusion of Rs 9,000 crore in the corpus.
“This will enable additional collateral-free guaranteed credit of Rs 2 lakh crore. Further, the cost of credit will be reduced by about 1 per cent,” she said.
Aiming to provide relief to MSMEs, the Finance Minister proposed that in cases of failure by MSMEs to execute contracts during the Covid period, 95 per cent of the forfeited amount relating to bid or performance security, will be returned to them by government and government undertakings.
To settle contractual disputes of government and government undertakings, wherein an arbitral award is under challenge in a court, a voluntary settlement scheme with standardised terms will be introduced. This will be done by offering graded settlement terms depending on pendency level of the dispute.
Stating that MSMEs are growth engines of our economy, the Finance Minister said that micro enterprises with turnover up to Rs 2 crore and certain professionals with turnover of up to Rs 50 lakh can avail the benefit of presumptive taxation. She also proposed to provide enhanced limits of Rs 3 crore and Rs 75 lakh respectively, to the tax payers whose cash receipts are no more than 5 per cent.
Moreover, to support MSMEs in timely receipt of payments, Sitharaman further proposed to allow deduction for expenditure incurred on payments made to them only when payment is actually made.
The Finance Minister also announced setting up of a National Financial Information Registry to serve as the central repository of financial and ancillary information. “This will facilitate efficient flow of credit, promote financial inclusion, and foster financial stability,” she said.
Sitharaman added that a new legislative framework will govern this credit public infrastructure, and it will be designed in consultation with the RBI.
The proposal to make NTR as the default tax regime supports the government’s initiative to digitise and simplify the tax process for the individuals…reports Asian Lite News
The new tax regime (NTR) will now be considered as a default regime, but it may not necessarily be a better option for all the taxpayers, experts said.
Preeti Sharma, Partner, Tax and Regulatory Services, BDO India, said that Finance Minister Nirmala Sitharaman has made conscious efforts to make the NTR more attractive for the taxpayers.
“The NTR shall now be considered as a default regime for all the taxpayers, but that does not necessarily mean a better regime for all. Taxpayers still need to look at their personal situation, various investments and expenditure that are eligible for tax exemption under the old regime and then decide which regime is better for them,” Sharma said.
Although the NTR is the default regime, an individual still has the option to opt for the old regime if the same is more beneficial in terms of tax outflow, Sharma said.
Deepashree Shetty, Associate Partner, Tax and Regulatory Services, BDO India, said several measures have been introduced to promote the NTR for individual taxpayers. These include increasing the basic exemption limit, change in the income slabs, extending the scope of tax rebate, extension of standard deduction, etc.
The proposal to make NTR as the default tax regime supports the government’s initiative to digitise and simplify the tax process for the individuals. This would also mean significant changes in the payroll procedures of employers for salaried taxpayers, Shetty said.
The income in personal income tax is expected to raise disposable incomes and transition the taxpayers to the new tax regime.
Suman Chowdhury, Executive Director and Chief Analytical Officer, Acuite Ratings & Research, said, “The rationalisation of the personal income tax structure is expected to lead to two things (i) raise disposable incomes for the middle class, particularly the younger taxpayers (ii) transition of the taxpayers to the new tax regime with minimal exemptions and lower and simpler tax slabs. This is expected to give a moderate boost to domestic consumption.”
S. Ranganathan, Head of Research at LKP Securities, said, “Thee Budget has put more money in the hands of the people through relief from income tax which to our mind is a very positive step.”
Sitharaman on Wednesday announced new tax slabs for 2023-24, under which no tax will be payable for income up to Rs 7 lakh per annum under the new income tax regime.
“Currently, those with an income of up to Rs 5 lakh don’t pay any income tax. I proposed to increase the tax rebate limit to Rs 7 lakh in the new tax regime,” Sitharaman said in her Budget speech.
A tax of 5 per cent would be levied on total income between Rs 3 lakh and Rs 6 lakh, 10 per cent tax would be imposed on income between Rs 6 lakh and Rs 9 lakh, while it will be 15 per cent on income between the range of Rs 9 lakh and Rs 12 lakh.
On the income range of Rs 12 lakh to Rs 15 lakh, 20 per cent tax would be levied, while the tax would be 30 per cent on an income slab of Rs 15 lakh and above, the finance minister informed.
Data embassies create a new approach to securing data by leveraging diplomatic agreements bolstered by cloud technology solutions….reports Asian Lite News
Finance Minister Nirmala Sitharaman on Wednesday announced that the government will set up Data Embassies in the country to facilitate seamless digital transfers and continuity for other nations.
A data embassy is a solution traditionally implemented by nation states to ensure a country’s digital continuity with particular respect to critical databases. It consists of a set of servers that store one country’s data and are under that country’s jurisdiction while being located in another country.
Data embassies create a new approach to securing data by leveraging diplomatic agreements bolstered by cloud technology solutions.
A data embassy is a solution implemented by nation states to ensure a country’s digital continuity with particular respect to critical databases.
“We will facilitate the setting up of Data Embassies for countries looking for digital continuity solutions,” Sitharaman said during her Union Budget speech in Parliament.
Data embassies are regarded as a tool to ensure a government’s digital continuity, meaning the survival of critical databases to allow the continuation of government even in a situation where governing from within the country’s borders is no longer an option.
Among threats that might lead to such situation are natural disasters, large-scale cyberattacks, and military invasion. In the worst-case scenario, a data embassy could enable government to provide its digital services without the national territory under its control
Small countries around the world are turning to the concept of “data embassies” because they are in need of sovereign and resilient infrastructure.
Estonia, one of the world’s most mature countries in digital administration, authorised a data embassy in 2015. Luxembourg, Monaco and some other nations have adopted the Data Embassy model.
According to a Google Cloud blog post, there are several components that comprise a data embassy.
“A data embassy must have a secure, resilient data infrastructure that can protect a nation’s data from cyber and physical threats. They should have a robust mechanism to ensure efficient data back-up and fail-over, as well,” it said.
185% increase in searches for domestic flights for the Republic Day Long Weekend.(photo:IANSLIFE)
This move is expected to further push the ongoing UDAN scheme which aims to improve regional connectivity across the country…report Asian Lite News
During the Union Budget speech in the House, Union Finance Minister Nirmala Sitharaman on Wednesday announced that 50 additional airports, helipads, water aerodromes, and advanced landing grounds will be revived to improve regional air connectivity in the country.
“50 additional airports, helipads, water aerodromes, and advanced landing grounds will be revived to improve regional air connectivity,” informed Sitharaman in Lok Sabha. Sitharaman started her Budget speech at 11 am, the last full Budget of the Modi government in its second term. Like the previous two Union Budgets, Union Budget 2023-24 is also presented in paperless form.
This move is expected to further push the ongoing UDAN scheme which aims to improve regional connectivity across the country. “50 additional airports, aerodromes and helipads as well as water routes would be built to enhance connectivity,” Sitharaman said.
This year’s Budget holds much significance as the country is scheduled to have the next Lok Sabha election in April-May 2024.
As per established tradition, Finance Minister Nirmala Sitharaman along with ministers of state Pankaj Chaudhary and Bhagwat Karad and Finance Secretary T V Somanathan called on President Droupadi Murmu.
This is the fifth budget presentation by Sitharaman.
The budget session of the Parliament began on Tuesday with President’s address, subsequently tabling the Economic Survey for 2022-23. The formal exercise to prepare the annual Budget for the next financial year (2023-24) commenced on October 10.
The Economic Survey, tabled in the Parliament on Tuesday, noted India’s GDP is expected to grow in the range of 6 to 6.8 per cent in the coming financial year 2023-24. This is in comparison to the estimated 7 per cent this fiscal and 8.7 per cent in 2021-22. (ANI)
To avoid visiting vaccination teams, tribal villagers in Odisha often escape into the forests.
The special focus on tribals is that the government wants to capitalise it ahead of polls in Madhya Pradesh, Chhattisgarh, Rajasthan, Odisha and Jharkhand…reports Asian Lite News
The Centre has launched a 15,000 crore development fund for the tribal and marginalised section, Finance Minister Nirmala Sitharaman announced on Wednesday.
“Pradhan Mantri PVTG(particularly vulnerable tribal groups) Development Mission is being launched to improve the socio-economic condition of the vulnerable groups. A total of Rs 15,000 crore will be made available to implement the scheme in the next three years.” the FM announced in her Union Budget 2023 speech.
The special focus on tribals is that the government wants to capitalise it ahead of polls in Madhya Pradesh, Chhattisgarh, Rajasthan, Odisha and Jharkhand.
The Indian economy, the FM said, is on a “right track and heading towards a bright future” and the current focus is on reforms as sound policies resulting in public participation have helped in increasing the country’s global profile.
“Our focus on reforms and sound policies resulting in Jan Bhagidari helped us in trying times, our rising global profile is due to several accomplishments,” she said.
Sitharaman further said that the entire expenditure of about Rs 2 lakh crore under the PM Garib Kalyan Anna Yojana is being borne by the Central government, for supplying free foodgrains for a year to all Antyodaya and priority households.
She said that the Indian economy has increased in size from being the 10th to the fifth largest in the world in the last nine years.
“We have made significant progress in many SDGs, the economy has become a lot more formalized, efficient implementation of schemes has brought about inclusive development, the minister Sitharaman said.
Economic agenda focuses on facilitating opportunities for citizens, providing strong impetus to growth and job creation, and strengthening macroeconomic stability, she added.
Sitharaman went on to say that the seven priority areas of the Union Budget are inclusive development; reaching the last mile; infrastructure and investment; unleashing the potential; green growth; youth; and the financial sector
“Cooperative base model has been adopted to support the small and marginalised farmers and a national cooperative database is being prepared.”
India bets big on agritech, investors pump in money.
The government proposes to increase the agricultural credit target to Rs 20 lakh crore with a focus on animal husbandry, dairy and fisheries…reports Asian Lite News
The second day of Budget Session 2023 began on Wednesday with the Union Finance Minister Nirmala Sitharaman presenting her fifth Union Budget which she described as “the first budget in Amrit Kaal.”
We envision a prosperous and inclusive India, Sitharaman said in her opening remarks. In her budget speech, Sitharman announced that an Agriculture Accelerator Fund will be set up to encourage agri-startups by young entrepreneurs.
She further said that the budget will enable inclusive farmer-centric solutions and help improve access to farm inputs, market intel, support for agri industry and start up.
The government proposes to increase the agricultural credit target to Rs 20 lakh crore with a focus on animal husbandry, dairy and fisheries, Sitharaman told Parliament. The agriculture sector of the country has been growing at an average annual growth rate of 4.6 per cent in the last six years.
“Will launch a sub-scheme of the existing PM Matsya Sampada Yojana scheme to improve value chain efficiencies,” she said.
Sitharaman started her Budget speech at 11 am, the last full Budget of the Modi government in its second term. Like the previous two Union Budgets, Union Budget 2023-24 is also presented in paperless form.
This year’s Budget holds much significance as the country is scheduled to have the next Lok Sabha election in April-May 2024.
As per established tradition, Finance Minister Nirmala Sitharaman along with ministers of state Pankaj Chaudhary and Bhagwat Karad and Finance Secretary T V Somanathan called on President Droupadi Murmu.
The budget session of the Parliament began on Tuesday with President’s address, subsequently tabling the Ecomomic Survey for 2022-23. The formal exercise to prepare the annual Budget for the next financial year (2023-24) commenced on October 10.
The Economic Survey, tabled in the Parliament on Tuesday, noted India’s GDP is expected to grow in the range of 6 to 6.8 per cent in the coming financial year 2023-24. This is in comparison to the estimated 7 per cent this fiscal and 8.7 per cent in 2021-22. (ANI)
Finance Minister Nirmala Sitharaman announced in her Budget speech that capital investment outlay is being increased steeply for the third year in row…reports Asian Lite News
The total capex outlay in the Union Budget for 2023-24 has been enhanced by 33 per cent from Rs 7.5 lakh crore to Rs 10 lakh crore which takes it to an all-time high of 3 per cent of GDP.
Finance Minister Nirmala Sitharaman announced in her Budget speech that capital investment outlay is being increased steeply for the third year in a row by 33 per cent to Rs 10 lakh crore, which would be 3.3 per cent of GDP. This will be almost three times the outlay in 2019-20.
This substantial increase in recent years is central to the government’s efforts to enhance growth potential and job creation, crowd in private investments, and provide a cushion against global headwinds.
The direct capital investment by the Centre is complemented by the provision made for creation of capital assets through Grants-in-Aid to States. The ‘Effective Capital Expenditure’ of the Centre is budgeted at Rs 13.7 lakh crore, which will be 4.5 per cent of GDP.
Suman Chowdhury, Executive Director & Chief Analytical Officer, Acuite Ratings & Research said the market was expecting a further commitment to public capital expenditure from the Govt and it has not disappointed. The total CAPEX outlay in the Union Budget has been enhanced by 33 per cent from 7.5 lakh crore to 10.0 lakh crore which takes it to an all-time high of 3 per cent of GDP. This will not only give a boost to the infrastructure sector but also be positive for employment and growth.
Anand Rathi, Founder & Chairman, Anand Rathi Group said a 33 per cent increase in capital expenditure to Rs 10 lakh crore, the highest ever will go a long way in building roads, ports, and airports — crucial for making India a reliable investment destination. Investment of Rs 2.4 lakh crore in Railways is commendable.
The gross borrowing estimate of 15.43 trillion rupees for next year is lower than the survey estimates of 15.77 trillion rupees. Hopefully, that should cheer the bond markets, Rathi said.
