The Budget of India is the annual financial statement presented by the Union Finance Minister of India, which outlines the estimated government revenue and expenditures for the upcoming financial year.
It is a crucial document that reflects the government's priorities, plans, and initiatives to address the country's economic and social challenges. The Union Budget 2023 was presented on 1st February 2023 by the Union Finance Minister Nirmala Sitharaman.
Here is a brief look at the budget impact on the market-
The government has stated that it will focus on infrastructure spending. Allocation to the Pradhan Mantri Awaas Yojana rising 66% to Rs 79,000 crore next fiscal made aiming at timely construction of urban and rural houses. As per FM, states are to be allowed 3.5% of the GDP as a fiscal deficit.
Capex support from the budget rises to 4.5% of GDP for the next fiscal from sub-4% this fiscal and sub-3% in fiscal 2020. “Infrastructure incentives are expected to give green energy as a priority.”
The budget for 2023 has proposed several reforms aimed at the agricultural sector, including a cash transfer of Rs 2.2 lakh crore under the PM-KISAN scheme. “Massive decentralized storage capacity to help farmers store produce and realize reasonable prices.”
The budget has proposed significant investment in the healthcare sector, there would be adequate funding to scrap old government vehicles and ambulances. The establishment of 157 new nursing colleges is to be done. Encouragement of research in the pharma sector.
The government has announced several measures aimed at the manufacturing industry, including funding for battery storage, renewable energy evacuation, green credit policy, and incentives for further growth.
100 labs using 5G services for developing apps will be set up in engineering institutions.