A Budget for Aatmanirbhar Bharat

Suresh Khatanhar

The Union Budget for 2022-23 is growth-oriented, a well-balanced and a visionary budget. The immediate imperative before the government was to ensure a holistic post-pandemic recovery. Towards this end, the Budget made various announcements to harness the potential of key sectors such as agriculture, MSMEs, infrastructure, health care, education, real estate, telecom, defence, exports, etc. There has been a concerted effort to revive sectors adversely impacted by the pandemic.

For instance, the extension of the ECLGS scheme and increase in the total cover to Rs. 5 lakh crore, especially for hospitality sector, the revamp of CGTMSE scheme, increased fund allocation, etc. is a welcome move for MSME sectors. Apart from making the sector more resilient, competitive and efficient, it will also accelerate the pace of economic growth and also lead to job creation in the country. The Budget also announced various real estate sector specific measures such as construction of over 80 lakh affordable houses by the year 2023, urban development through the concept of mega cities, augmented focus on Tier 2 and Tier 3 cites, etc. to revive the sector which was adversely impacted by the pandemic.

The agriculture sector has been registering steady growth notwithstanding the disruptions caused by the pandemic. The Budget has made a number of announcements viz. Kisan drone for crop assessment, digitization of land records, chemical-free Natural Farming, etc. to further boost the sector. Another focus area of the Budget was the infrastructure sector wherein the government has earmarked higher investments for expansion of physical infrastructure in the country as also enhanced the capital expenditure under the PM GatiShakti plan.

The government has also placed special emphasis on the digital ecosystem of the country, be it, the digital banking units, digital payment system, digital currency, digital health ecosystem, etc., reaffirming the government’s commitment towards adopting technology to further inclusive growth. The Budget has also announced a slew of initiatives to create a conducive environment for promoting aspiring entrepreneurs and start-up culture by facilitating ease of doing business.

Additionally, the various skill development measures and initiatives are expected to provide a further thrust to job and entrepreneurial opportunities in the country. Thus, in a nutshell, the Union Budget 2022-23 underscores the government’s resolve towards striking a fine balance in strengthening the growth fundamentals and ensuring a sustained economic recovery, thereby maintaining macroeconomic stability.

The Budget also focuses on augmenting capital expenditure to drive growth in order to crowd-in private investment through higher public spending. It also highlights the resolve of the government to ensure an inclusive and a sustainable growth story with emphasis on Aatmanirbhar Bharat.

The writer is deputy managing director, IDBI Bank.

Views are personal and do not represent the stand of this publication.