"Reflective of inclusive growth": Former CEO NITI Aayog Amitabh Kant on interim budget

New Delhi [India], February 1 : Former CEO NITI Aayog Amitabh Kant after the interim budget presentation in parliament, said that the budget is very reflective of inclusive growth.
"The budget is very reflective of inclusive growth. It is reflective of the confidence of the government that will come into the long-term budget. It believes in micro-economic fundamentals. It believes in bringing financial discipline, no populism, and ensuring capex expenditure. It believes in putting the priorities of the country first and foremost..." said Former CEO NITI Aayog Amitabh Kant.
Ajay Singh, CMD SpiceJet and President, ASSOCHAM also lauded the increase in infrastructure spending that will have a multiplier effect on our economy.
"It is an India first budget. A confident budget of a confident government that focuses on the objective of ensuring that India becomes a 5 trillion-dollar economy by 2025 and a developed nation by 2047. I commend the FM for her unwavering commitment to sabka saath, sabka vikas, sabka vishwas. I commend especially the increase in infrastructure spending that will have a multiplier effect on our economy. I commend the evident railway corridors, and the one lakh crore fund for research and development and the startup sector. The emphasis on clean energy, technology and digital infrastructure will make India a world leader. This is India's moment and this budget is part of a continuous process of making policy that will provide massive opportunities for India and Indians." said Ajay Singh, CMD SpiceJet and President, ASSOCHAM.
Meanwhile, former President FICCI & Chair ISC Naina Lal Kidwai lauded the fiscal prudent measure of keeping a fiscal deficit of 5.1% which is less than last year.
"The budget was a bit of a surprise because many of us were expecting a commitment to stay with the fiscal deficit at 5.3%... The government has announced a fiscal deficit of 5.1%, which is even stricter than what they had originally indicated and which the markets had readily accepted... We don't know on what basis they believe that the revenues will be good and healthy enough to enable the fiscal deficit at 5.1%. Because on the other hand, there has been no scaling back of capital expenditure. There is an increase of 11.1%... We have had a pretty big allocation in capital expenditure... So these are two huge positives. CapEx up. Fiscal deficit down..." Naina Lal Kidwai said.
As the Finance Minister announced two crores more houses that will be built in the next five years, lauding this announcement, Sudhir Pai, CEO Magicbricks, said, "Given its interim nature, the budget offered only a few announcements that impacted real estate. Its commitment on advancing the "housing for all" vision stands out with provisions under the PM Awas Yojana and a focus to enhance economic, digital and social infrastructure. These strategic initiatives are poised to generate additional employment opportunities and foster a positive ripple effect on the real estate sector. From a supply perspective, tax breaks such as a reduction in custom duties or GST, would have been beneficial in accelerating new supply. In the current landscape where demand has surged to a decadal high along with a substantial increase in residential prices, such measures could have played a role in creating a balance and crafting a sustainable long term growth story. Overall, the interim budget centers around infrastructure development across various sectors, aiming to enhance the livability index and assist in promoting homeownership,"
Meanwhile, Union Finance Minister Nirmala Sitharaman pegged the fiscal deficit target for 2024-25 at 5.1 percent 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.
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.
The government intends to bring the fiscal deficit below 4.5 per cent of GDP by the financial year 2025-26.
The government proposed to increase capital expenditure outlay by 11.1 per cent to Rs 11.11 lakh crore in 2024-25.
A capital expenditure, or capex, is used to set up long-term physical or fixed assets.
The Indian economy is projected to grow close to 7 per cent in the financial year 2024-25 which starts this April, said the Ministry of Finance in a review report.
India's economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22. The Indian economy is expected to grow 7.3 per cent in the current financial year 2023-24, remaining the fastest-growing major economy.