Sanjiv Bajaj, president of the Confederation of Indian Industry (CII), hailed the Union Budget for the fiscal year 2023-24 on Wednesday, saying it will have a multiplier effect on the economy. “The government managed a tough balancing act of meeting the priorities of growth through capital spending while keeping a fiscal deficit under check. While at the same time very strong focus on inclusion to ensure prosperity for the masses,” Sanjiv Bajaj said.
He also praised the government’s proposal to increase capital investment by 33% to Rs 10 lakh crore for the fiscal year 2023-24. “An effect of capex of Rs 13.7 lakh crore would have a multiplier effect on the economy creating jobs and facilitating private sector investment,” he said, adding that the government’s 33% increase in public sector capex over last year is a positive step.
Overall, the government suggested increasing capital investment outlay by 33% to Rs 10 lakh crore in 2023-24, or 3.3% of GDP, according to Union Finance Minister Nirmala Sitharaman.
“(This overall outlay) would be 3.3 per cent of GDP, almost three times the outlay made in 2019-20. With the substantial increase, it is central to government’s efforts to enhance growth potential and job creation, the crowd in private investments and provides a cushion against global headwinds,” Sitharaman said in her Budget speech.
At 11 a.m., Sitharaman began her Budget speech, the last full Budget of the Modi government’s second term. Union Budget 2023-24, like the previous two Union Budgets, is presented in paperless form. This year’s Budget is significant since the country’s next Lok Sabha election is expected for April-May 2024.
As is customary, Finance Minister Nirmala Sitharaman, state ministers Pankaj Chaudhary and Bhagwat Karad, and Finance Secretary T V Somanathan paid a visit to President Droupadi Murmu.
Sitharaman is presenting her sixth budget.
The budget session of the Parliament opened on Tuesday with the President’s address, after which the Economic Survey for 2022-23 was tabled. On October 10, the formal process of preparing the annual Budget for the next fiscal year (2023-24) began.
The Economic Survey, which was tabled in Parliament on Tuesday, stated that India’s GDP is likely to increase at a rate of 6 to 6.8 percent in the fiscal year 2023-24. This compares to a projected 7.7 percent this fiscal year and 8.7 percent in 2021-22.
