Pradeep Multani, President, PHD Chamber of Commerce and Industry shares his views on the recent budget
It is highly encouraging that the Union Budget seeks to lay foundation and give blueprint of economy over ‘Amrit Kal’ of next 25 years
Mr Pradeep Multani, President, PHD Chamber of Commerce and Industry has congratulated Mrs Nirmala Sitharaman, Hon’ble Finance Minister, for presenting a pragmatic and promising budget for Aatmanirbhar Bharat, in a press statement issued.
It is highly encouraging that the Union Budget seeks to lay foundation and give blueprint of economy over ‘Amrit Kal’ of next 25 years – from India at 75 to India at 100, said Mr Pradeep Multani.Effective capital expenditure of the Government is estimated at Rs 10.68 lakh crores in 2022-23, about 4.1% of GDP, revised fiscal deficit estimated at 6.9% of GDP as against 6.8% in Budget Estimates and fiscal deficit for FY 2023 is estimated at 6.4%. We are hopeful that fiscal consolidation will be in line in the coming years, said Mr Pradeep Multani.
Strengthening of health infra, speedy vaccination programme implementation and nationwide resilient response to current wave of COVID19 pandemic are evident to all, said Mr Pradeep Multani. We appreciate that the PLI Scheme in 14 sectors has received excellent response ‘Make In India’ can create 6 million new jobs seek to lay foundation for the next 25 years, said Mr Pradeep Multani.
It is encouraging that the Emergency Credit Line Guarantee Scheme has helped 130 lakh MSMEs mitigate the worst impact of the pandemic. In this regard, extension of the ECLG Scheme upto March 2023 along with extension of guaranteed cover by another Rs 50,000 crore, bringing the total cover under scheme to Rs 5 lakh crore now, is highly appreciable and in line with PHD Chamber suggestions, said Mr Pradeep Multani.
It is highly appreciable to note that the IT, Defence and R&D will be opened up of for industry and startups and 68% of capital procurement budget in defence will be earmarked for domestic industry in 2022-23. This will provide a great boost to the industrial development in the country, said Mr Pradeep Multani. To catalyse the overall investments in the economy, allocation of Rs 1 lakh crore has been made to assist the States for FY 2022-23. These 50-year interest-free loans are over and above normal borrowings allowed to States and will be used for PM Gati Shakti-related and other productive capital investments of States, said Mr Pradeep Multani.
To provide a boost to the domestic manufacturing, under the PLI Scheme, additional allocation of Rs 19,500 crore has been made for PLI for manufacturing of high-efficiency modules with priority to fully integrate manufacturing units to solar PV modules. This will facilitate domestic manufacturing for ambitious goal of 280 GW of installed solar capacity by 2030, said Mr Pradeep Multani. To facilitate faster movement of people and goods, PM Gati Shakti will encompass the 7 engines for multi-modal connectivity for the states with speedier implementation of development projects through technology through Rs 20,000 crore financed by the Government to speed up this project, said Mr Pradeep Multani. The recognition of infrastructure development by Budget is also visible through announcements such as boost for Railways under the Gati Shakti plan, development and manufacturing of 400 new-generation Vande Bharat trains in next 3 years, expansion of National Highway network by 25,000 km in 2022-23, planning od 100 cargo terminals in 3 years, among others, said Mr Pradeep Multani. It is highly encouraging that for mobilizing resources for green infrastructure, sovereign Green Bonds will be issued as a part of the government’s overall market borrowings in 2022-23. The proceeds will be deployed in public sector projects which help in reducing the carbon intensity of the economy, said Mr Pradeep Multani.
