Budget 2023: Puneites shower praise on FM Nirmala Sitharaman, say budget full of positives, lacks negativity

Senior citizen Sathyan Iyer of Pradhikaran said, “From the income tax point of view, citizens have every reason to raise a toast. The FM has proposed an increase in the deposit limit from Rs 15 lakh to 30 lakh. This is more toward positive investment. Now an elderly couple can invest a maximum of Rs 60 lakh in the Senior Citizen Savings Scheme plus Rs 15 lakh in PO MIS plus Rs 30 lakh in the PM Vaya Vandana Yojana… This is fantastic news for senior citizens. However, the concession for train travel that was hitherto available to senior citizens, but suspended during the pandemic, has not been fully restored.”

The focus on MSME lending, Ease of Doing Business and contract resolutions, said Anil Pillai, director of Terrangni Consulting, was a step in the right direction. “The reduction in income tax, costing approximately Rs 33,000 crore to the exchequer will be set off by enhanced spending. This again should see robust economic activity while providing relief to the middle class. What remains to be seen is how the government manages to keep inflation in check, as inflation could prove to be a dampener to growth in the coming months. Overall, from our perspective, this is an excellent budget and one that would continue to fuel the virtuous cycle of large ticket spending and growth,” Pillai said.

HP Srivastava, the vice-chairman of the Deccan Chamber of Commerce, Industries and Agriculture, Pune, said: “It is overall a very good and positive budget, which has focused on increasing disposable income and consumption.”

The newly announced rebate on the income tax front, said Srivastava, will give a boost to cooperatives and start-ups. “The FM has finally provided some succour to senior citizens and middle-income salaried class which was overdue… There is no negativity in the budget. It should make everyone happy,” he said.

Rohit Gera, managing director, Gera Developments, Pune, said: “The government has continued the approach of taking a long-term view of the economy. The fiscal deficit being maintained as per the budget estimates and the downward trend thereof are reassuring. The rationalisation of tax slabs under the new tax regime is welcome. Leaving the old tax slabs untouched clearly reinforces the government’s statement of making the new tax structure the default structure. Steps being taken to increase digitalization as well as ease of doing business are also very welcome.”

Stock broker Gaurav Bora from Pimpri-Chinchwad said, “Finance Minister Nirmala Sitharaman has announced her best budget so far… Even the stock market is happy as Long Term & Short Term Capital Gain remained unchanged. This is indeed a positive development.”

Bora, however, said: “The budget is good but in the race of becoming an economic superpower, the FM forgot our basic habit of saving as the FM is not promoting tax saving instruments.”

From the education field, Dr Maithili Tambe, CEO, The Academy School, Pune, said: “It is a welcome move that the government thought of the pandemic effect and loss of learning and reading during the time by introducing the National Digital Library for children in order to build a culture of reading. Promotion of non-curricular titles in regional languages will also foster reading in students.”

Tambe said the budget has struck a fine balance as far as education and the societal strata go. In order to boost education among tribals, more than 38,000 teachers would be recruited, thus empowering not only the 3.5 lakh students but also the teaching fraternity with job opportunities. The teacher training move will only further benefit the education sector as a whole. At the same time, in order to keep pace with technological advances, centres of excellence for AI to enable ‘Make AI for India’ have also been introduced. The initiative sums up a well-rounded education budget.”

Jaatin Suratwala, managing director and chairman, Suratwwala Business Group Ltd, Pune, said, “Budget 2023 gives more emphasis on buyers and affordable housing with cuts and allocations. This may increase demand but constraints remain on the supply side… including not recognizing our request to be declared an industry.

“That said, after the Covid-19 after-shocks, the fact that buyers would want to come to us due to more money on account of lower or zero taxes is a welcome development. The PM Awas Yojana of Rs 79000 crore for the affordable category holds some promise, especially for builders who take up affordable housing. As for the rest, it is business as usual.”

Talking about the energy sector, Suratwala said: “Rs 35,000 crore priority capital for energy transition is good news for those dealing in solar energy or transitioning into it from thermal energy.”

Dr Satish Patil, founder and CEO, Mitibase Technologies, Pune, said: “It is a ‘green budget’ for the transportation and automobile industries. We applaud the government for increasing the tax break for new businesses and introducing a new fund worth Rs 6,000 crore to support MSMEs and start-ups across India.”

“We are particularly pleased to see the extension of the capital gains exemption for investments in start-ups, which will enable more significant funding for this industry and motivate more venture capitalists to diversify their holdings,” he added.

This Budget, he said, stands out for placing a stronger focus than ever on creating digital infrastructure. “The government’s plan to create three ‘Centers of Excellence for Artificial Intelligence’ in esteemed academic institutions as part of its ‘AI Work for India’ initiative is a sign of hope for businesspeople who have been working in the area and are attempting to give new life to various industries and services. These institutes will surely work as a link between academic institutions and top businesses to conduct research and create useful AI applications across various industries, such as agriculture, health, and sustainable cities,” he further said.

Vedant Goel, managing director, Neo Mega Steel LLP, Pune, said: “It’s a fantastic people’s budget that at the same time gives great emphasis on the renewable and green power sector and continues the really good work of infrastructure development in India… The National Green Hydrogen mission with its Rs 19,700 crore outlay will transition India into the new realm of low carbon emissions and lesser need for crude oil and coal.

“There is an immense increase in Capex by a whopping 33 per cent to Rs 10 lakh crore for infra development in 2023-2024. It would be an astounding 3.3 per cent of the GDP and would be handled separately by a newly established infrastructure finance secretariat for more private sector investments. There is a big boost to infrastructure development in Tier 2 and 3 cities with an Urban Infrastructure Development Fund (UIDF) of Rs 10,000 crore. In sum, it’s a fantastic people’s budget that at the same time gives great emphasis on the renewable and green power sector and continues the really good work of infrastructure development in India,” he added.

Goel further said, “As someone close to the construction and steel industry, I am aware of these and renewable energy’s role in an economy’s growth – more so in the case of India, given our size and growth trajectory. So as someone who knows these to an extent, I am very confident that this budget has come for the benefit of everyone from the common man to industrialists. Its effects will be felt by India for a very long time in the future.”

Mahendra Luniya, chairman, Vighnaharta Gold Ltd, Pune, said: “The new tax structure will leave money for the common man. As the fiscal deficit is kept below 6 per cent, it will result in interest rates on loans not increasing for sure. In that case, money will also increase in the common man’s pocket. And our common man stays a little away from the stock market, his investment priority remains gold, so the investment of the Indian common man in gold is definitely going to increase. The tax slab on imported jewellery will be increased and the tax on imported silver will also be increased. Importantly, no tax will be levied on e-receipts of gold. Now let’s look at the international situation. Outside India, the situation is uncertain, and the Russia-Ukraine war is having a huge impact on Europe. Gas and oil are going to be scarce. China is caught up in their own problems. Investment in gold increases in such an uncertain market, recently gold has crossed the $1,800 mark and now it has a clear sky, even technically speaking, it is likely to go up to $2,200 and can rise further.”

“We appreciate the budget’s emphasis on promoting consumption and reviving the economy. The augmented focus on the agriculture sector will facilitate the farmers in smoothening their operations and getting more funds for inclusive rural development. The creation of agriculture infrastructure funds along with separate allocation for high-value horticulture will give the industry a much-needed boost. The industry would also gain from the 11 per cent increase in the agriculture credit objective from Rs 18 lakh crore to Rs 20 lakh crore. We eagerly await the implementation of these measures and their impact on agriculture and farmer profitability. This budget also highlights a separate focus on providing water connections and toilet facilities to households. This will spur demand in the plumbing and sanitation segment. Additionally, a hike in capital expenditure by 33 per cent to Rs 10 lakh crore for infrastructure development and the allocation of Rs 79,000 crore to affordable housing will act as a catalyst for building, construction materials and allied sectors,” said Prakash Chhabria, executive chairman of Finolex Industries Ltd.