• By Abhirupa Kundu
  • Thu, 01 Feb 2024 02:00 PM (IST)
  • Source:JND
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Union Finance Minister Nirmala Sitharaman on Thursday tabled the interim Budget 2024-2025 announcing the Bharatiya Janata Party (BJP) led Centre's step towards increasing capital expenditure by almost 11 per cent. India's corporate top players soon after the Budget 2024 presentation flocked to discuss the government's revised fiscal deficit.

Calling the Budget "10/10", National Stock Exchange of India (NSE) CEO, Ashish Chauhan expressed his pleasure remarking that the current government has figured out the "winning formula".

"The Interim Budget has stuck to the winning formula that I think the current government has figured out - fiscal restraint with welfarism and growth. So, overall it is a 10/10 budget. It is just an interim budget, the actual budget will be presented after the election but they want to stick to their winning formula they have figured out over the last 10 years," the NSE chief said.

In a similar vein, welcoming the Budget, R Dinesh, President, of the Confederation of Indian Industry said, "The immediate reaction would be the consolidation of the fiscal deficit. Our recommendation initially was a 5.4% fiscal deficit, but it's now 5.1%, which is a very significant step forward, but at the same time, does not sacrifice the focus on growth. So the capex spend has increased by almost 11.1%, which is also very good. So a continued focus on infrastructure growth takes place. The third very important aspect is the focus on the rural sector and also the four aspects of women, the farmer and the poor being taken care of. The continuation of the housing, both for women as well as for the rural sectors, are all very welcome."

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The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings that may be needed by the government.

"This takes care of the equitable growth approach of the government and we have to wait and see regarding the direct tax and indirect tax proposals. As the finance minister has said, that will be taken up only in the final budget. So, therefore, this budget does not cover that. So as far as we are concerned, it's a very positive step forward concerning having the headroom available for growth, Considering the fiscal deficit and also the focus on equitable growth from an industry perspective, obviously we will wait for the main budget to come to look at that details." added R Dinesh.

Sitharaman pegged the fiscal deficit target for 2024-25 at 5.1 per cent of gross domestic product (GDP).

In 2023-24, the government pegged the fiscal deficit target for 2023-24 at 5.9 per cent of gross domestic product (GDP). Today, Sitharaman said that the fiscal deficit of 2023-24 was downwardly revised to 5.8 per cent.

"We applaud the announcement by the Finance Minister during the interim budget 2024, signaling a significant stride towards a sustainable future. As a leading EV and charging infrastructure manufacturer, we welcome the government's commitment to support the sector. This is a testament to the recognition of electric vehicles' pivotal role in addressing environmental concerns and promoting clean energy. This support will undoubtedly catalyze the development of robust and efficient EV ecosystems, making electric vehicles more accessible and appealing to a broader audience. Our commitment to excellence in manufacturing and technology aligns seamlessly with the government's vision, and we look forward to contributing significantly to the success of this initiative," Dr Anshul Gupta, Managing Director, Okaya EV said.

Pradeep Kumar Aggarwal, Founder & Chairman, Signature Global (India) Limited said, "The announcements are wonderful...The biggest thing is that there was a lot of focus on infrastructure...Focus has been given on the bottom of the pyramid - especially the section which was not addressed earlier...This is a balanced budget. They did the best they could. So, quite hopeful that we will hear more announcements in the time to come..."

Ramachandran Dinesh, President, CII and Chairman, TVS Supply Chain Solutions Ltd said, "Our recommendation initially was 5.4% (fiscal deficit) but it is 5.1% - it is obviously a very significant step forward. But at the same time, not sacrificing the focus on growth. The CapEx spend has increased by almost 11.1% which is also very good so, the continued focus on infrastructure growth takes place...We have to wait and see regarding the direct and indirect tax proposals - as the Finance Minister has said that it will be taken up only in the final budget...As far as we are concerned, it is a very positive step forward with regard to for having headroom available for growth, considering the fiscal deficit and also the focus on the equitable growth."

Speaking on the focus of the Budget 2024, Pratik Kamdar, CEO & Co-Founder, Neuron Energy said, "The Interim Budget focused on key sectors and one of the promising ones is Electric Vehicles (EV). The initiatives will enhance and fortify the EV ecosystem by bolstering manufacturing and charging infrastructure. Additionally, the encouragement of greater adoption of e-buses for public transport networks through payment security mechanisms is a notable benefit. These investments not only pave the way for increased EV sales and adoption but also open doors for burgeoning job opportunities and entrepreneurial ventures within the sector. These efforts remain dedicated to driving India's green mobility revolution forward. There is also an anticipated outcome in the form of economic empowerment which will equip the youth with valuable technical skills, ensuring a robust workforce for the manufacturing of EV chargers, and associated equipment. We look forward to the July budget where the focus will be on the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme and the much-anticipated FAME III scheme."

Saroj Mahapatra, Executive Director at PRADAN, said, "We applaud the government’s efforts in assisting 25 crore people to get rid of multi-dimensional poverty, with the pursuit of Sabka Saath. It is commendable that through Direct Benefit Transfer of Rs. 34 lakh crore, PM Jan Dhan Yojana accounts have led to savings of Rs. 2.7 lakh crore for the government, which has helped in providing more funds for Garib Kalyan.

"There is a need to put in more efforts by the government and explore public-private partnerships for boosting farmers incomes. The PM Sampada Yojana has benefited 38 lakh farmers. The PM Formalisation of Micro Food Processing Enterprises has assisted 2.4 lakh SHGs," Saroj said.

"It is also commendable that 83 lakh SHGs (self help groups) with 9 crore women have been integrated for transforming the rural social economic landscape. We would also request the government to increase the number of Women FPOs (Farmers Producer Organization), so that India can create more lakhpati didis in the next 2-3 years. Multi-stakeholder partnerships will also bring about large scale transformative changes in the lives of rural poor and more targeted investment in the poverty clusters," Saroj further said.

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