Subhrakant Panda, president of industry body FICCI, has said the Budget announcements made on Wednesday captured the pulse of the economy.
"FICCI congratulates the Hon'ble Finance Minister for delivering a balanced and progressive Union Budget which gives primacy to inclusive growth. The announcements made today capture the pulse of the economy while retaining credibility both in terms of projections as well as committing to the fiscal consolidation glide path," Panda said post Budget.
"Most importantly, a historic outlay for public capex is a continuation of the heaving lifting since the time of the pandemic and will have a multiplier effect across myriad sectors of the economy besides crowding in private investment," Panda added.
The government on Wednesday presented the annual Budget for 2023-24, the last full Budget of Modi government 2.0. This year's Budget holds much significance as it is the last of the Narendra Modi government before the next Lok Sabha election in April-May 2024.
In her Budget speech, finance minister Nirmala Sitharaman said capital expenditure 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. Presenting the Union Budget, Union Finance Minister Nirmala Sitharaman on Wednesday pegged the fiscal deficit target for 2023-24 at 5.9 per cent of gross domestic product (GDP). In 2022-23, the government pegged fiscal deficit at 6.4 per cent.
The Finance minister further said that the government intends to bring the fiscal deficit below 4.5 per cent of GDP by the financial year 2025-26.
"This is a step in the right direction amidst a global economic situation which is still not at ease. Moreover, the revision in tax rates under the new regime will augur well on the consumption side," added Panda. Panda also complimented the government on its guidance about meeting the fiscal deficit target for the current financial year despite persisting uncertainty, adding which he said will lend credibility to the budget.
The Union Budget, FICCI said, reflects a "nimble-footed and agile approach" to keep India on the growth path. Consistency and commitment are two critical levers for success, and FICCI said it lauds the government for staying earnest on both thereby positioning India as a growth engine for the world.
( With inputs from ANI )
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