What has the budget allocated for your sector?
The union Budget 2023 by Finance Minister Nirmala Sitharaman announced an increase in capital expenditure for infrastructure development by 33% to Rs 10 lakh crore for the years 2023–2024. The budget’s overall goal is to promote capital investment and consumption in order to foster growth. As a result, various industries, including the real estate and its allied industries will have a multiplier effect. By boosting the capital outlay, the government maintained its focus on the affordable housing segment as well. The incentives for start-ups, fintech firms, and improved ease of doing business will also assist the commercial real estate industry and likewise give a push to the associated industries including building materials, tools and equipments etc.
How do you see 2023 budget prioritizing businesses to grow?
The Union Budget 2023–24, the first Budget of Amrit Kaal included announcements which were bold and focused towards growth. The budget is heavily weighted towards capital expenditures, which is necessary to make sure continuous cyclical recovery. Overall, the budget’s push for capital expenditures will ensure that private capex greenshoots are truly sustainable, promote inclusive development, strengthen the economy’s resistance to the effects of the global slowdown and thus help businesses in their growth.
What are the provisions in the budget that can be used to your advantage?
Seven priority areas were announced by Government’s Union Budget to build on keen focus – Infrastructure Investment and Green Growth being among the seven key focus areas. The guiding force of the Budget will be the steep rise in the Capex to 3.3% of GDP and will provide a strong push to infrastructure and allied industries which comprises the construction and building material industry as well.
Another welcome move which will encourage home buyers to buy new homes is the changes in the income tax slabs of the salaried employees. This will give the required push to the real estate sector including the construction industry and overall the building material segment which at the end provides sturdiest end products to the buyers. This can also help in some way to meet the burden of the rising cost of raw materials, delayed projects owning to cash crunch, etc.
Has the budget helped to maintain the balance in all sectors which are co-related?
The budget is well balanced and given appropriate budgetary allocations to all sectors which are co related such as Rail/Road/Port infrastructure and last mile connectivity. The improvement in the infrastructure will enable simultaneous growth in all sectors. The improved connectivity will result in reducing the transit times which in turn will reflect in the reduced cost of materials.
Is this budget as per industry expectations?
The Union Budget 2023-34 made numerous announcements and yes the budget was quite favourable to the industry expectations. For instance, programs like Urban Infrastructure Development Fund which will be managed by the National Housing Bank to create urban infrastructure in Tier 2 and Tier 3 cities and the announcement to increase the capital expenditure for infrastructure development by 33% were incredible initiatives. Hence, the Budget will provide the required impetus to the industry expectations.
