Budget 2023: This Union Budget saw ‘Halwa’ ceremony return
As pre-Budget preparations reached the final stage, the ‘Halwa’ ceremony saw a comeback this year after being put on hold for the previous budget due to the COVID-19 pandemic. The annual ritual which heralds the Union Budget, saw Finance Minister Nirmala Sitharaman stir the kadhai to mark the tradition.
As part of the tradition, halwa is prepared in the basement of the North Block and served to those staff and officials of the Finance Ministry, who were involved in prepping the Budget. During the ceremony, Sitharaman also toured the Budget Press and reviewed preparations.
Post the halwa ceremony, officials are now in a ‘lock-in’ period within the North Block with a view to maintaining the secrecy around the final budget document. They will also emerge once the Budget speech is completed in the Lok Sabha on February 1. Notably, since taking the Budget digital this lock-in period has shortened from two weeks to five days.
Indices down 2% as pre-Budget selling wipes off Rs 12 lakh crore investor wealth
Experts say the market is jittery ahead of two key events—Union Budget 2023-24 and the US Federal Reserve meeting; see it bouncing back after the Budget… Read More
Budget expectations: Gaurav Dua, Head of Capital Market Strategy at Sharekhan by BNP Paribas
“Higher allocation to capital expenditure; increase in allocation for PLI scheme to select manufacturing segments; higher MNGREGA allocation given the sluggish rural economy; changes income tax slab to provide relief to the middle class in an inflationary environment; and focus on the monetization of non-core assets of public sector and central government entities to invest in Railways and other logistics infrastructure are likely policy measures in the Budget 2023 to boost economic growth,” Gaurav Dua, Head of Capital Market Strategy at Sharekhan by BNP Paribas said.
What the Budget 2023-24 entails?
Most experts believe the Budget will take a balanced approach towards fiscal consolidation and economic growth while focusing more on capital expenditure on infrastructure (including defence, railway, roads etc), widening production-linked incentive schemes for more sectors, boosting rural demand and divestment targets.
Any tweak to capital gains tax or its tenure structure would also be keenly watched by the Street.
Budget 2023-24: US pharma industry seeks R&D policy for India’s pharmaceutical sector
Ahead of the Union Budget 2023-24, the US pharma industry has said that India should come out with a research and development policy for its pharmaceutical sector.
Karun Rishi, president of USA-India Chamber of Commerce (USAIC) expressed these thoughts:
– It is time that the government of India comes out with a research and development policy for the pharmaceutical sector
– In the BioPharma sector, the budget should aim to move up the value chain driven by research and development. Right policy push can provide India the fuel to become the R&D hub of the world.
– For national security and stabilising the global supply chain, the budget should incentivise R&D and manufacturing, especially enhancing API (active pharma ingredients) manufacturing in India.
– FM Sitharaman and her team should focus on growth strategies, increasing public expenditure on healthcare, capacity building, skills development and employment creation.
– Though challenging, the finance minister should stick to the fiscal deficit target. During COVID-19 pandemic, the Indian government gave the economy a much-needed capital expenditure push and doled out subsidies. This led to a rise in the fiscal deficit.
Budget 2023: US venture capitalists hope India’s Budget to boost start-up ecosystem Union Finance Minister Nirmala Sitharaman is scheduled to table the Union Budget for the financial year 2023-24 before parliament on February 1…. Read More
Budget 2023: Bibek Debroy hopes for move towards exemption-less tax system
Bibek Debroy, chairman of the Economic Advisory Council to the Prime Minister, had earlier also suggested that the upcoming Union Budget should incentivise taxpayers to move towards an exemption-less direct tax system. According to Debroy, the move would increase revenue, reduce compliance costs and litigation, and broaden the tax base.
“I think the big agenda on the direct tax side which is still pending is the removal of exemptions, both on the personal income tax side and the corporate side,” Debroy had said in an interview with Moneycontrol.
Union Budget 2023: Arvind Panagariya says time to simplify personal income taxation system, end exemptions
Ahead of the Union Budget 2023 scheduled to be presented on February 1, former Vice Chairman of Niti Aayog Arvind Panagariya expressed that it is time for the Finance Ministry to simplify the personal income taxation system and end exemptions.
In an exclusive interview with Moneycontrol, Panagariya suggested that the time is ripe for ending at least most of them, if not all, exemptions in personal income tax just as it has been done in the corporate tax. “It doesn’t matter if revenue is the issue, they (the central government) can start out with 4-5 tax rates.”
He suggested that the forthcoming Budget must try to overcome this and introduce a more effective exemption-free option with lower tax rates.
Budget 2023 seen pro-growth, prudent, not so populist: Survey
Budget 2023: Finance Minister Nirmala Sitharaman will likely increase expenditure by about 12.5% year-on-year to 44.40 trillion rupees ($ 544 billion) in the year beginning April, according to the median of estimates in a Bloomberg survey ahead of the Feb. 1 budget…. Read More
How Budget 2023 could accelerate India’s transition to a greener economy (3/3)
– Green bonds: In the last Union Budget, the government announced plans to issue the first SRGB. In November, the country’s final framework for sovereign green bonds was approved, which sets forth the obligations of the government of India as a Green Bond issuer. The RBI has also already said that there is also no foreign investment cap on the SRGB.
– Conservation: In Budget 2022, the budget for biodiversity conservation was slashed from Rs 12 crore to Rs 8.5 crore. In light of India’s climate and biodiversity commitments at COP27 and the UN Biodiversity Conference in 2022, experts hope Budget 2023 will address this deficiency.
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How Budget 2023 could accelerate India’s transition to a greener economy (2/3)
– Mission Life: In 2022, Prime Minister Narendra Modi launched Mission LiFE (Lifestyle for the Environment). LiFE is expected to be a big priority in the coming year too, with the government focusing on how to roll out this mission in the next two years or so. To this end, specific outlays for different ministries could be announced to ensure effective on-ground implementation.
– Electric vehicles: Another area that will be in focus is clean mobility, particularly electric vehicles (EV). While there needs to be a policy push to create an efficient indigenous EV industry, the Union Budget may drive adoption by offering incentives such as faster tax depreciation for electric vehicles and charging infrastructure.
– Green hydrogen: To this end, climate financing and mobilising more resources by increasing allocation in the PLI schemes for boosting the domestic manufacturing of green hydrogen and sustainable solutions could be announced.
How Budget 2023 could accelerate India’s transition to a greener economy (1/3)
At COP27 in 2022, India reinforced its earlier commitments to support the target of 500 GW from non-fossil-fuel sources by 2030. To this end, expectations and hopes from the Union Budget 2023 are aplenty for a strong focus on green energy, and a greater thrust on climate action and sustainability. Expected are:
– Expansion of PLI schemes: The upcoming budget could see the announcement of PLI schemes that turn India into a green energy hub for domestic adoption and exports. Experts expect PLIs in advanced chemistry cell battery storage and for manufacturing of electrolysers.
– Carbon market: With climate change top of mind, countries and businesses the world over are setting up a roadmap to achieve their net-zero goals. An announcement on a national carbon market is expected this time around, which could facilitate India’s transition to a more energy-efficient economy with reduced emissions.
– Renewable energy: The upcoming budget is likely to focus on strengthening the institutions, frameworks, and financial incentives on meeting overall RE targets. As per the CareEdge report, Budget 2023 will include: “a push towards investments in storage technology, green hydrogen and pumped hydro to enable scaling up of RE capacity.”
