During the unveiling of Budget 2023, Finance Minister Nirmala Sitharaman remarked that the Indian economy was doing well despite global headwinds, and that a growth rate of 7 percent could be expected. While presenting her fifth full budget since becoming the finance minister in 2019, Sitharaman announced changes to certain levies and taxes, thus affecting the prices of many goods and commodities.
To provide relief to middle-income groups, the budget introduced modifications to direct and indirect taxes, with the government set to lose 37,000 crore rupees to 38,000 crore rupees of tax money, according to the FM. A new credit guarantee scheme for reducing lending costs by 1 percent and boosting MSMEs with extra 2 trillion rupees in collateral-free credit guarantees was announced in the budget. Let’s take a look at the reactions of BFSI industry experts in the following sections.
Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank said,
“The union budget has adequately focused on the holistic development of the economy with special emphasis on infrastructure, MSME financing needs, affordable housing, and consumers. The surge in capex spending, if achieved, will have a significant multiplier effect on the overall medium-term growth prospects of the economy. Further, the personal income tax benefits may provide cushion to the weakening consumer demand. The overall reiteration on the fiscal consolidation path along with inline market borrowings bodes well for the bond markets.”
Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance stated,
“The union budget is an all-inclusive progressive budget with a strong impetus for growth and development, which will augment the Indian economy towards achieving its goal of becoming a 5-trillion-dollar economy. Once again, a renewed stress on job creation and skill development has been put forth. The proposed ecosystem for the agricultural space will be a game changer for our farmer friends and will enhance their ability to get more significant insights, tools, and materials. It will also help them gain access to credit and insurance in a big way. Direct tax for individuals has been further simplified, and the enhancement of rebates for resident individuals under the new regime is a welcome move. What impresses me more is the move towards increased outlay for infrastructure, which compliments the announcement of surety bond insurance in the last budget and lays the foundation for a strong, connected India.”
Govind Singh- MD & CEO, Utkarsh Small Finance Bank remarked,
“The union budget, in my opinion, points towards expansion and growth, both in terms of economic development and job creation. What’s more significant is that it is inclusive and encompasses both the hinterland and the urban cities alike with reforms that would enable a nation that is truly Atmanirbhar and spells Saab Ka Saath Saab ka Vikas. Timely implementation will certainly be key for expected outcomes in the medium term. Overall, a budget in the right direction for all sections of the society.”