Budget Reactions: This Budget Is A Boost To The Employment & Macroeconomic Growth

The budget release has placed a strong emphasis on macroeconomic growth along with a microeconomic focus on comprehensive assistance and job creation. Owing to this, let's have a look at what the experts have to say.

Mr. Vikas Bhasin, MD, SAYA Home, has said that "The Union Budget 2022-23 is progressive, providing a broad-spectrum boost to the economy, particularly with its emphasis on improving the country's infrastructure. The government has increased the Capex target by 35.4 percent, from INR 5.54 lakh crore to INR 7.50 lakh crore, potentially boosting overall spending for economic growth. The budget also emphasises the importance of appropriate urban planning, while simultaneously providing some assistance to states and keeping the budgetary deficit in check. Another significant plus is that the government's goal of creating 6 million new jobs over the next five years will allow residential real estate to expand across the country. In a post-covid era, it's a good budget since it hasn't altered the tax system, leaving individual discretionary incomes unaffected and the government has continued on its stated path to job creation. However, a few pressing issues in the real estate sector remain unaddressed such as granting the sector industrial status and tax breaks on home loans to enhance buyer confidence."

Akash Sinha, CEO & Co-Founder, Cashfree Payments, has expressed his views by saying that "Budget 2022 is a reflection of consumers' trust in digital-first approach to banking & finance. Economic Survey 2022 highlighted that UPI is currently the single most extensive retail payment system by volume, reiterating its wide acceptance. This has contributed immensely towards driving digital transformation in the country. Additionally, the idea of setting up digital banking units in multiple districts will help in the homogenisation of the financial services in rural and semi-urban geographies. The launch of digital currency by the RBI is both encouraging and critical in empowering the digital native youth to take a transformational leap from the conventional currency tools. We have witnessed an increasing use of blockchain technology to simplify and secure the consumer's journey, and this push was required to encourage innovation in this domain. Fintechs and startups must help stakeholders establish connections with remote locations and provide value-added services to the underserved and unbanked segments."

He further added that "Moreover, the 5G spectrum technology and the scheme for the penetration of fibre optics across villages will boost the growth of rural and gig economies. We also compliment the Hon'ble Finance Minister for the support extended to the startup ecosystem via reforms in taxation, incentives, investments and other benefits that will promote Make in India and Digital India initiatives. We feel that the announcements made during the budget session display the growing importance of startups and their ability to exhibit agility and purpose alike."

Jaya Vaidhyanathan, CEO, BCT Digital, has stated that "The Union Budget 2022 has lived up to expectations on many fronts. The FM has delivered a budget that addresses holistic measures to take the economy towards the $5 trillion target. Overall finances seem to be in good shape, with a fiscal deficit for FY22 at 6.9%, and GST collections at a record Rs.1.4 lakh crore in January. Capex budget has been increased by a steep 35.4%, which is the need of the hour. The highlight for the year has been the unfaltering focus on complementing macro-economic growth through micro measures, such as all-inclusive welfare, domestic production, tech-aided development, and public infrastructure while pushing the envelope on the energy and climate agenda - a tall order."

She further added that "The fintech industry will welcome announcements such as 100% CBS coverage for the post office, liberal regulation for the GIFT IFSC centre, and heightened emphasis on fintech education. All of these acknowledge the government's efforts to transform India into a global fintech hub. The FM has also announced FY23 as the timeline for the much-awaited RBI CBDC - the digital Rupee. Crypto enthusiasts will appreciate the clarified stance on cryptocurrency, although gains will be taxed at 30% with 1% TDS."