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Union Budget 2023: SBI, PNB Housing, Kotak Investment Advisory react Budget reaction
Image: PIB

Union Budget 2023: SBI, PNB Housing, Kotak Investment Advisory react

India Blooms News Service | @indiablooms | 01 Feb 2023, 08:18 pm

New Delhi/IBNS: Finance Minister Nirmala Sitharaman on Wednesday (Feb 1, 2022) tabled the Union Budget for the Financial Year 2023-24 with a major focus on capital formation with the highest outlay ever outlay of Rs 2.40 lakh crore, about 9 times the outlay made in 2013-14. In a major relief to the middle class of the country, the Basic exemption limit has been raised to Rs 3 lakh from the existing Rs 2.5 under the new income tax regime in Budget 2023-24. Tax rebate under Section 87A has been hiked from Rs 5 lakh to Rs 7 lakh.

Reacting to the Budget, State Bank of India (SBI) Chairman Dinesh Khara, Chairman said the Union Budget is growth accretive, fiscally prudent and consumption supportive.

“The huge emphasis on capital expenditure could be the perfect recipe for a private investment cycle that is already visible,” he opined.

Support for MSME and Agriculture will broad base credit growth, Khara said.

“Reasonable Government borrowing numbers will support lower interest rates and the move towards a clutter-free new tax regime will significantly spur consumption. Overall, the budget is forward-looking and will support an inclusive economy,” he added.

PNB Housing Finance MD & CEO Girish Kousgi said the intended infusion of Rs 79,000 crores towards affordable housing is a positive move as India inches towards 100 years of Independence.

It’s a win-win situation fortifying our nation's rural infrastructure and adding power to lower and middle-income groups, he said.

“The wheels are set in motion towards inclusive and sustainable economic growth and this 66% increased commitment will bolster higher rural participation,” he highlighted.

Commenting on the Union Budget, Lakshmi Iyer, CEO Investment Advisory of Kotak Investment Advisors said, “Budget 2023 has offered a multi-dimensional view. The 3 Cs which stand out are- Capex increase - consumption boost – capital gains tax status quo."

Mindful of the fact that there is hardly any space for fiscal expansion, FY 24 Fiscal Deficit is pegged at 5.9% and expected to see progressive reduction by FY 2026, Iyer said.

"Clearly, a bull’s-eye budget satisfying most strata of the society and of course a thumbs up from the market as well,” she said.

MIRA Money Co-founder Anand K Rathi said the Budget was on expected lines with focus on capital expenditure, especially on the execution and completion of infrastructure-related projects.

On the new tax regime, Rathi said, “Happy that the Government didn’t give in to the pressure from the middle class. Though there has been a revision in the income tax slabs for the salaried class, the income Tax regime needs a massive change.

He said there is a need for a clear rollout plan toward a simpler, more effective, and inclusive income tax regime.

He said the government is trying to make Section 80C obsolete with the new tax regime but a phased rolldown of 80C would have been better.

Rathi said many investors force themselves to save in ELSS and Term insurance. “My concern is that under the new tax regime, this may lead to reduced individual savings. 80C could have been addressed.”

Regarding the step towards a PAN card as a KYC, this is the right step forward. As such, Aadhar was linked to a PAN card; with this, the number of documents required for businesses and investing will decrease. “As a next step, if a PAN card can be the primary document, it would make onboarding easier for individuals and corporates,” Rathi noted.

He pointed out that the Budget didn’t announce any steps for the semiconductor industry. “While we are yet to read the fine print, it would have helped if the budget could have allocated Rs.10,000 crores to the industry. There is a massive potential for Indian manufacturers to make use of this opportunity.”

He also said that a plan for the development of ports was missing in the Budget. “Many ports and connecting roads need a lot of work and simplification of the process. As a fast-growing economy, we needed a massive upgrade in the existing facilities.”

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