Dr Dipen Agrawal, President – Chamber of Associations of Maharashtra (CAMIT) reacting to the budget 2023 said that “Finance Minister, Nirmala Sitharaman has presented a vision document for India at 100”. In her speech she envisaged various new concepts and proposal to take forward India on its growth journey. She has attempted to provide something for everyone. Outlining the vision of central governments for technology-driven and knowledge-based economy with strong public financesand a robust financial sector, she said that this will be achievedbyJan BhagidariandSabka Saath SabkaPrayas.
Dr Agrawal said, the continuation of PM Garib Kalyan Anna Yojana (PMGKAY) for one more year; formation of large producer enterprises to support about 81 lakh women self-help groups; recognizing traditional artisans and craftspeople as Vishwakarma and conceptualizing new package scheme to improve the quality, scale and reach of their products; exploring untapped potential in tourism on mission mode will enable youth in fulfilling their aspirations and provide necessary imputes for growth and job creation.
It is to be seen how government works on the seven priorities‘Saptarishi’1) Inclusive Development 2) Reaching the Last Mile 3) Infrastructure and Investment 4) Unleashing the Potential 5) Green Growth 6) Youth Power 7) Financial Sectoridentified asguiding factor, added Dr Dipen Agrawal.
The announcement regarding establishment of Digital Public Infrastructure for agriculture to provide farmer-centric solutions on host of farming related activities, massive decentralised storage capacity and government facilitated multipurpose cooperative societies, primary fishery societies and dairy cooperative societies in uncovered panchayats and villages will give boost to rural economy. Similarly establishing new nursing colleges in co-location to medical colleges established since 2014 will improve per-capita nursing staff in the country. While government is considering to introduce teachers’ training through various programs, the government should at the same time ensure that government education institutions are not under staffed.
Dr Dipen Agrawal welcomed the announcement of PAN being made common identifier for business entities; Unified Filing Process is proposed to be set-up to avoid duplication of compliance; National Financial Information Registry to be set-up as the central repository of financial and ancillary information; the Vivad se Vishwash scheme introduced to settle MSME contractual obligations said that these steps will have long lasting positive effect to improve business sentiments.
The announcement to ensure timely payment is made to MSME, government has linked thededuction under Income Tax Act for payments to actual payment to MSMEs. However, the deduction will be allowed on accrual basis only if it is within time mandated under MSMED Act, i.e. 45 days. In its endeavor to give relief to MSME government has inadvertently created compliance hurdle for other sidei.e.large scale industries, this step will have large scale tax implication for them, added Dr Agrawal.
Now days there is nothing much expected from FM on indirect tax but people eagerly wait for announcement on direct tax front. FM has disappointed common man by announcing meager increase (Rs 50000) in basic exemption limit. However, FM has given substantial relief to middle-class individuals by increasing rebate limit from 5.00 lakhs to 7.00 lakhs. Similarly high net-worth individuals will be benefited by reduction in highest surcharge limit from 37% to 25%.
Overall,I see this budget as intelligent budget that focuses on key areas of infrastructure, employment while keeping fiscal deficit on track and on scale of 10, I give 7 points for 2023 Budget.