A fabulous budget for inclusive growth, focus on MSMEs heartening, says HUL's Sanjiv Mehta

Sanjiv Mehta, CEO and MD. HUL

The Budget 2023-24 balances long term with short term and it is not only about spending on capex but the manner in which the government is doing it, HUL chairman and managing director Sanjiv Mehta said on February 1.

"The Finance Minister has been clear that if MNREGA demand is more, the government is willing to allocate more funds," Mehta, also former FICCI president, said in an interview to CNBC TV18, as the allocation for the rural job plan was the lowest in four years.

He also said that the government’s focus on micro, small and medium enterprises (MSMEs) and agriculture was encouraging, as he hailed the Budget 2023 as  fabulous, which focuses on inclusive and sustainable growth.

Echoing the sentiment, Federation of Indian Chambers of Commerce and Industry (FICCI) president Subhrakant Panda said, "I think the focus on MSMEs is really praiseworthy because what we are looking for is not just growth but sustainable, resilient and inclusive growth and that cannot be achieved without MSMEs being looked after.

“So Rs 9,000 crore allocation to the credit guarantee scheme which will enable about Rs 2,000 crore credit for MSMEs, interest rates to be bought down by 1 percent, I think are significant steps. As is you know the caring side of the budget, in terms of the vivad se vishwas scheme where MSMEs who were not able to deliver during the pandemic and have had their monies forfeited will be able to get bulk of it back.”

Panda said that the allocation towards infrastructure would keep the momentum going. He expected the allocation to be muted this year after it was increased by 35 percent the last time but the finance minister really stepped up to the plate by allocating Rs 10 lakh crore, the FICCI chief said.

"Both in terms of assumption as well as the fiscal consolidation glide path where 6.4 percent has been projected to be achieved for the current year, 5.9 percent for the next financial year and eventually below 4.5 percent by FY26, so all of this adds to the credibility of the entire budget making exercise,” Panda said.