As an entrepreneur, I am happy with the recent union budget presented by the Honourable Finance Minister. The budget has provided a roadmap for growth and development in the coming financial year 2023-24. I am confident that the measures announced in the budget will give a much-needed boost to the service industry and help us navigate the challenges posed by the pandemic and the war. Here are the points that we appreciate:
- The highest on-record increase in Capital Investment by 33% for the third year in a row will have a multiplier effect on the economy. This increase is 3.3% of our GDP at INR 10 Lakh Crore well higher than the 7.5 lakh crore in the previous year. We welcome this move and it will push India to reach the milestone of a 5 trillion Dollar economy faster. This investment will be a force multiplier propelling growth and warding away the fears of a possible global economic recession gripping the country substantially.
- Rebate of Tax exemption (in the new tax regime) increased from Rs. 5 lakhs to Rs. 7 lakhs, under the New Tax Regime. This will have high disposable income in the hands of the individuals – thus increasing spending, eventually boosting retail growth.
- Tech-driven paperless compliance has been given special mention. Extending the scope of Digi-Locker to include business entities and usage of PAN as a common identifier is another great step towards digitization. This will eliminate the need to have over 20 enterprise identities in the current environment. It is a good step towards sustainability as well through saving a lot of paper and time. Around 3,000 compliances have either been removed or many offenses decriminalized.
- A very important proposal for the MSME is that those who take services and goods from an MSME unit will not be able to claim expenditure on such purchases unless they pay the MSME. This will result in faster payments to MSMEs thus improving their cash flows and therefore survival.
- Outlay for the MSME sector has been increased by 9,000 Cr via credit guarantee schemes.
- The Jan Vishwas bill aims to address the longstanding challenges faced by India’s entrepreneurs. It is a step towards establishing a transparent and trustworthy governance model.