Only a few days are left for the Union Budget 2023 to come and since it is the last full year budget before the general elections in 2024. Therefore, it is expected that the government will give priority to employment generation and development in this budget.
New Delhi: The upcoming Union Budget is just a week away, analysts expect the 2023 budget to focus on employment generation (Union Budget 2023 expected to focus on employment). Axis Securities MD and CEO B Gope Kumar said that since this is the last budget for the whole year before the central elections in 2024, it is expected to be special. The focus of the budget is likely to be on job creation and investment-driven growth. Gope Kumar said the real estate sector could get a boost with some announcements to extend the existing income tax benefit for housing.
Measures to encourage rural spending and infrastructure development will be the main highlights of the budget. Roadmap To strengthen entrepreneurship, self-reliance can be promoted and the way can be decided for employment generation. Gopkumar said that FMCG, manufacturing, MSME and banking are some of the areas in which action can be taken. Anmol Das, Head of Research, Teji Mandi, said, “So many industries are demanding incentives for their individual sectors. We expect the Finance Minister to present a big budget with major incentives on infrastructure, manufacturing, defense and export driven businesses. These subjects will cater to business sentiments as an investment destination.
Looking at next year’s elections, Finance Minister Sitharaman may give some relaxations in tax slabs and exemption limit for direct taxes. Apart from these general expectations, there will be disinvestment targets in other focus areas. Which have not been completed for the last several years. Changes in the capital gains tax regime would include high demand in investment circles, incentives for development of EV charging station network, import restriction for indigenization of companies in defense sectors, equipment and ammunition, etc.
Amar Ambani, Group President and Head of Institutional Equities, Yes Securities, said that even though the expenditure for FY23 will exceed the budgeted number, the math will remain under control due to the jump in tax collections. The FY2024 budget expansion is likely to be a moderate one with the economy stabilising. Looking at the budget figures of the last two decades, it is clear that the NDA has been less expansionary on the fiscal front.
He said, the government will continue to focus on capex and stick to its target of increasing the share of indirect taxes. We see subsidy bills in GDP going back to pre-Covid levels. Ambani said that despite the fact that the government’s debt servicing is a cause for concern, interest payments are significantly impacting revenue receipts, a decisive tilt towards small savings schemes should reduce dependence on market borrowings and sovereign yields But the pressure should be reduced.
This time, the government is likely to be modest in its asset monetization targets, unlike the big projections in previous budgets. Ambani said there is every possibility that India’s gross domestic product (GDP) growth target will be in low double digits amid a challenging global backdrop and the government will not deviate from its fiscal prudence roadmap. Measures to encourage rural spending and infrastructure development will be the main highlights in the budget. Any roadmap to create and strengthen the entrepreneurial culture can promote self-reliance and go a long way in employment generation. Union Budget 2023 focus on Job Creation