Budget 2023 balances growth with fiscal prudence, says CII president

Finance Minister Nirmala Sitharaman presenting the Union Budget 2023.

The 2023 Union Budget tabled by Finance Minister Nirmala Sitharaman on February 1 “balances growth with fiscal prudence” said CII president Sanjiv Bajaj, adding that several recommendations made by the Confederation of Indian Industry (CII) found a place in this year’s Budget.

Speaking about the finance minister’s fifth and the last full Budget of Modi 2.0 before the 2024 Lok Sabha elections, Bajaj said: “it is very much a Budget that balances growth with fiscal prudence.”

Talking to CNBC-TV18 about CII recommendations being incorporated in Budget 2023, he said its suggestions including a public capex increase to Rs 10 lakh crore and the rationalisation of personal income taxes found a place in FM Sitharaman’s Budget speech 2023. “We are seeing significant focus on agricultural productivity and efficiency, actions on the green energy industry and opportunities there as well. So, overall, I would say it is very good,” Bajaj said.

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The CII president also commended the fact that the Union Government stuck to the fiscal deficit target of 6.4 percent this year and the target to go below 6 percent -- to 5.9 percent -- next year. “So, this is a welcome balance that we are seeing,” he said.

Earlier, Bajaj had discussed his expectations for the Budget and expressed hopes for progress on ease of doing business and reduction in the cost of doing business. He had said that the industry looks to, “continue with an atmosphere that ends up supporting new investment, encouraging current investment and creating a few more sectors to help us leverage those opportunities”.

In his first post-Budget impression, the CII president lauded the FM’s decision to continue with the credit guarantee scheme for MSMEs – “expanding it by Rs 2 lakh crore, that’s a welcome move”, he said, adding: “Because as growth comes back, MSMEs will find this as a significant support to get growth.”