'Budget great push towards digital inclusion, expansion of digital infrastructure across multiple sectors'
Balachander Sekhar, Co-Founder and CEO, RenewBuy
Budget 2022 is a great push towards Atma Nibhar Bharat, where a huge focus has been given towards digitisation. Announcement on use of drones for crop assessment, digitisation of land records, 2000 km rail network under the world-class technology- Kawach, Desh e-portal for upskilling of our youth, will immensely help in increasing India’s status as a digitally connected nation. Announcement on the Reserve Bank of India issuing its version of central bank digital currency is also a welcome step towards cheaper management of currency and positioning India on the global parameters of the digital economy. This budget is a great push towards the digital inclusion and expansion of digital infrastructure across multiple sectors, for individuals as well as businesses.
'Government’s recognition of startups as the drivers of economic growth is heartening'
Madhusudan Ekambaram, Co-Founder & CEO, KreditBee
Union Budget 2022-23had special emphasis on Financial Inclusion, technology adoption and entrepreneurship in the Union Budget 2022 -23, which is highly appreciable. Initiatives like Desh stack e-portal and interlinking of Udyam, e-shram, NCS and Aseem portals will surely contribute to the Digital Infrastructure and entrepreneurial push. Introduction of Central Bank Digital Currency (CBDC), leveraging blockchain technology will influence the digital transactions and hence its implementation process will be something to pay attention to. The government’s recognition of startups as the drivers of economic growth is heartening. Measures like setting up an expert committee to suggest measures to help attract investment and extension of tax incentives period for startups incorporation by 1 year, will certainly aid in creating a healthy startup ecosystem. Equally encouraging is the Government’s bid to boost digital banking and financial inclusion with initiatives like bringing 100% of 1.5 lakh post offices into the core banking system. In a broader sense, the Finance Ministry has presented a distinctive set of measures in Union Budget 2022-23, with a streamlined focus on rapid, holistic and inclusive economic growth.
Budget encourages digital investment platforms to expand their services
Kavitha Subramanian, Co-Founder, Upstox
The Hon'ble Finance Minister has presented a digital-first Budget that focuses on quick, holistic, and inclusive economic growth. The focus on start-ups and fintech in this year's Budget is a fantastic step that will help these sectors grow further.
The introduction of 5G and the spread of optical fibre to villages would provide a boost to the Fintech industry. It encourages digital investment platforms like ours to expand their services, resulting in an increase in retail activity in Tier 2-Tier 3 cities and towns. The Central Bank Digital Money (CBDC) will help to enhance the digital economy by making currency management more efficient and less expensive. The capping of surcharge at 15% on Long-Term Capital Gains (LTCG) tax for all listed and unlisted corporations responds to a long-standing demand for new-age businesses.
‘Budget 2022-23 puts economy on fast-track, gives fillip to businesses’
Shanti Ekambaram, Group President – Consumer Banking, Kotak Mahindra Bank Limited
Union Budget 2022-23 focuses on key growth engines of the economy - infrastructure, education, healthcare, housing and rural development. Finance Minister Nirmala Sitharaman has focused on allocation to build the foundation for economic growth over many years. The government has set a capital expenditure target of Rs. 7.5 lakh crore for FY 23 from Rs 5.54 lakh earlier. The budget has allocated Rs 1 lakh crore to states for the PM Gati Shakti-related projects and for other productive investments. Extension of the Emergency Credit Line Guarantee Scheme until March 2023 is a welcome move to infuse further liquidity in the MSME sector. A sum of Rs 48,000 crore is allotted for the PM Awas Yojana that will benefit 60,000 houses in rural and urban segments. The introduction of a Digital Rupee by RBI and the setting up of 75 digital banking units in 75 districts by commercial banks is a big boost to the digital ecosystem. The government has given ample allocation to provide a framework for businesses to invest and grow.In the second consecutive year of the Covid-19 pandemic, the budget has focused on the right areas to put the economy on the fast track.
'Budget seems to have put the millennial user in a position of responsibility'
Sumit Gwalani, co-founder, Fi neo bank
This budget, in some sense, has recognised the involvement of millennials in the economy today. From bringing crypto under the government’s regulatory ambit (with the 30% tax rate applicable to digital transfers) to introducing provisions to improve ease of doing business, this year’s Budget seems to have put the millennial user in a position of responsibility, while facilitating the carrying out of this responsibility. It’s also encouraging to see the support for digital payments will continue. We see this as a benefit that will be passed on to millennial consumers who will only get better with their finances this year with the help of more services built on the back of this system. Pulling back a bit, the idea of having 75 digital banking units in 75 districts to start with, is a remarkable commemoration of our 75th year of Independence. This, coupled with the fact that digital payments will continue to see the same incentives as we did last year, is promising for neo-banks and the possibility of banking licenses.
Budget focuses more on broader growth and fiscal stimulus across sectors
Casparus J H Kromhout, MD & CEO, Shriram Life Insurance
Budget 2022 is a roadmap for economic recovery, with a focus on capital expenditure and spending by the government, both for economic growth and welfare programmes. On a broader front, the government has chosen to build on the Budget from the previous year and focus more on broader growth and fiscal stimulus across sectors.
The government has provided some welcome relief to specific sets of insurance customers in terms of allowing the payment of annuity andlump sum amount to the differently-abled dependent during the lifetime of parents/guardians; thus allowing insurers to be able toprovide more value to these customers.
However, the life insurance industry was also expecting some measures from the Budget to boost insurance penetration especially in the aftermath of the Covid-19 pandemic; where the importance of financial protection and security has been highlighted like never before especially for the vulnerable segments of the society.
A well crafted growth-oriented Budget, says Sanjiv Bajaj, Bajaj Capital
By Sanjiv Bajaj, Jt. Chairman & MD, Bajaj Capital
Budget 2022 appears to be a well-crafted growth-oriented budget to promote overall economic activity in the country. With several proposals around capital expenditure, job creation and more, Budget 2022 is bringing the focus back on infrastructure, affordable housing, development of MSMEs, and the farm economy. The budget also has several proposals for the growth of the start-up ecosystem. For the taxpayers, no change in personal income tax structure has come as a relief with no tinkering with the existing rates as well.
Key takeaways from FM Nirmala Sitharaman's Union Budget speech
Finance Minister Nirmala Sitharaman on Tuesday presented the Union Budget 2022, the blueprint for 'amrit kal' of the next 25 years, in Parliament, ahead of elections in five states.
In the Union Budget 2022, Finance Minister Nirmala Sitharaman made a slew of announcements outlining the economic growth for India over the next 25 years. Here's what the banking and finance sector experts are saying about the Union Budget 2022. Stay tuned for updates.
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