The pandemic undoubtedly impacted the economy, but as is evident from the numbers, there has been a smart turnaround thanks to decisive steps taken by the central government to use it as an opportunity to bring about change by focusing on infrastructure. The government’s agenda of self-reliance, or ‘Atmanirbhar Bharat’, is predicated on a revitalised manufacturing sector, and this is evident in the Union Budget for 2022-23. A very tangible effect, of course, is the boost it will provide to employment, which is a key metric.
Finance Minister Nirmala Sitharaman has been pragmatic while drafting the Budget, and has seized the opportunity arising from buoyant tax revenues to carve out a comprehensive, forward-looking growth agenda. A 35% increase in public capital expenditure to Rs 7.50 lakh crore, which further goes up to Rs 10.58 lakh crore when assistance provided to states is concerned, is just what the economy needed at a time when recovery is under way. Moreover, steps such as the credit guarantee trust, which will facilitate Rs 2 lakh crore credit for MSMEs, extension of the ECLGS till March 2023 along with an additional outlay of Rs 50,000 crore directed at the hospitality sector, will provide much-needed relief; MSMEs will also benefit from revamping of Raising and Accelerating MSME Performance (RAMP) programme.
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