From Pradhan Mantri Awas Yojana to change in tax slab, understand 7 important things of the budget

Umesh Revankar: The General Budget 2023-24 is a development-oriented budget and the Finance Minister has taken care of everyone from consumption to capital expenditure and from middle class to industry. With the announcement of an increase of 33%, it is a budget focused on capital expenditure i.e. Capex, which will give a boost to infrastructure, logistics and transport business. The government’s focus on ease of doing business and extended funds for credit guarantees will mean that MSMEs have a lot to gain from this budget. The budget has given detailed attention to agriculture and rural development, which should boost rural economy and consumption. The income tax benefits announced in the budget will boost purchasing power for middle class consumers. I believe that the announcements made in the budget will speed up lending to small enterprises, consumption-based businesses and transportation.

According to me seven big things of this budget

• The provision made for capital expenditure is equivalent to 3.3% of GDP and represents a government that is focused on growth. Big rail budget and implementation of 100 transport infrastructure projects will give a boost to the entire transport ecosystem.
• Ease of Doing Business has been made easier by decriminalizing several legal provisions and reducing compliance requirements. This means ease of operation for MSMEs who often struggle with compliance and legal hurdles.
• Changes in tax slabs will bring more money in the hands of the middle class, which will increase consumption.
• The enhanced credit guarantee scheme with an investment of Rs 9000 crore in the corpus will reduce the cost of funds for MSMEs and support the sector, which is the backbone of the economy.
• The increase in expenditure under Pradhan Mantri Awas Yojana by 66% to Rs 79,000 crore is good news for affordable housing. The Urban Infra Development Fund of Rs 10,000 crore will be used to transform urban planning and make cities more sustainable. This will also help housing and housing finance.
• The agriculture sector will get more credit through interest subvention, unsecured loans and rural infrastructure schemes. More spending on agriculture will give the much needed boost to the rural economy.
• Focus on women and senior citizens through enhanced deposit schemes and specially designed savings schemes for women and girl child will encourage savings and empower them.
• Before the elections, the Finance Minister has presented a prudent budget keeping in mind the development and I believe that the announcements made in it will have a huge multiplier effect on the economy.
  (The author is Executive Vice Chairman, Shriram Finance, Views expressed are personal)