AT THE GCCI LIVE PRESENTATION OF BUDGET 2022-2023: Amongst those present to discuss the impact of the budget were GCCI President Ralph De Souza and other executive committees member including Shrinivas Dempo, Manoj Caculo, Nilesh Shah, Prashant Barve, Gaurav Kenkre, Sanjay Amonkar, Pravin Satardekar, Chandrakant Gawas, Pratima Dhond, Amin Ladak, CA Rohan Bhandare, Orland Rodrigues, Dean Menezes and others

By Our Special Correspondent

WILL Finance Minister Nirmala Seetharaman’s more or less hour long budget 2022-23 be an impetus for growth? That is the key question many are asking with some saying it is a fairly good budget while others damn it as yet again a trick show khaas aadmi budget — by now a typical trademark show of the government of the day!
This is to say quite a few people liked the idea of catching up with this year’s Union budget for 2022-23 at the live telecast being relayed at the Surendrababu Timblo Convention Hall of the GCCI in Panaji on February 1, 2022 from 11 am onwards. This has become a GCCI traditional thing to do every year when media people who come in get a chance to interact with the prominent business community for their viewpoints.
Finance Minisiter Nirmala Seetharam’s reading of the budget was barely over an hour long and short, to the point. In the beginning one got the impression that it was a budget revolving around agriculture, youth, women and SC-ST communities. But it was no so as one learned later on. It was more like a futuristic blueprint for India@100 as the words sprung up on screen frequently! It may be remembered that the bottom half of Indian society is still struggling for a decent happy livelihood after 75 years of independence courtesy Congress and BJP governments. Government after government is still struggling to put India into the category of being a first world country.
After the budget presentation various GCCI spokespersons led by GCCI president Ralph De Souza agreed that by and large FM Nirmala Seetharam’s budget is growth-oriented, with an impetus on capital expenditure to fuel economic growth and generate employment. The FM must be commended for maintaining the fiscal deficit at 6.9% of GDP in FY22 and GDP growth for FY22 is expected to be at 9.2% — the highest for any large economy. Mr Ralph De Souza said the hospitality sector firms are yet to regain their pre-pandemic level of business and the extension of ECLGS scheme is welcome.
Other highlights include the formal announcement of the launch of the India’s CBDC, the Digital Rupee, a much awaited positive move. The SEZ Act is being replaced with new legislation. By and large the budget is good news with individual tax slabs remaining at status quo, there are no new taxes or cesses (to support vaccination programs!). Instead there is a reduction in certain surcharge taxes of AOPs, corporates and long term capital gains; also start-ups and manufacturing units are getting a boost with an extension of tax benefits for another year.
Curiously, a new form of voluntary disclosure and payment of taxes, exhibits the trust the government now places on taxpayers. Things to look out for are E-passports, 5G rollout, PLI extension to 14 sectors — Atmanibhar Bharat will create 6 million jobs and increased fund allocation will boost MSME.
GCCI Vice-President Srinivas Dempo lauded the FM for listing four priorities of the Modi government: PM Gati Shakti, inclusive development, energy transition and climate action and financing of investments. All in all the business community welcomes the initiative taken for ease of doing business and boldly repealing something like 1,486 laws. There is the promise of transparency in release of payments by government departments, also rationalisation of taxes and a major of information was that the government has got a whopping GST collection (it is yet to be determined if this is because of the digital technologies put in place or the spiralling inflation). Inflation is certainly not good news for the majority of Indians struggling to make ends meet at very primary levels.
Former GCCI President Manoj Caculo thanked the fact that it was not a populist budget considering the forthcoming elections, the industry is not being heavily taxed this time around. Ease of living would be the next step of ease of doing business for the nation, it is the right way to go. Electric vehicles battery swapping policy to be brought out with interoperability standards is a good step but details have yet to be studied. CII President Atul Jadhav expressed his delight over no new taxes and welcomed the extension of the ECLGS scheme and addition of Rs50,000 crore to the same.
Also upbeat about the budget were Nilesh Shah (chairperson, TTAG) who said the road infra from Gati Shakti will boost tourism along with the 300 Vande Bharat trains proposed as also the Parat Mala scheme which envisions ropeways in the North East region. CA Gaurav Kenkre (vice-president, Institute of Chartered Accountants, Goa) said the budget has increased Capex funding more than any previous budget and this will boost the economy. The record GST collection means economic recovery will be faster, more enforcements and efficient data analysis.
CA Rohan Bhandare (chairperson, GCCC Taxation Committee) said that introduction of digital rupee using block chain technology gives a strong message that India is ready for any technology adoption. The government has gone a step ahead to take tax-payers into confidence and in the process of tax declaration, by opening up the options for updating tax returns within two years is a positive. Others prominent attendees at the live budget presentation included Pratima Dhond, Amin Ladak, Chandrakant Gawas, CA Rohan Bhandare, Orland Rodrigues, Prashant Barve, Dean Menezes, Dr Sangam Kurade, CA Ashutosh Kharangate, Joseph De Souza and GCCI Director Sanjay Amonkar.

Most expressed hope that India’s growth momentum will need continue to be supported by fiscal levers, yet at the same time there are great expectations for the government to aim for modest fiscal consolidation. To be able to bring down fiscal deficit to 4.5% of gross domestic product by 2025-26 as per the overall proposed glide path. Of course for this a delicate balance will have to be maintained if multiple objectives are to be achieved. The budget is not a panacea for economic problems as many policy decisions may be announced outside the budget – as in the past! (Sanjay Amonkar, director, GCCI)