The government is taking a major step towards digitalisation and financial transparency with the expansion of the Government Digital Certificate Depository — Digilocker — for the fintech sector, says Abhay Bhutada, Managing Director, Poonawalla Fincorp.
India’s Union Budget for 2023-2024, presented by Finance Minister Nirmala Sitharaman is anchored in the government’s vision of a technology-driven and knowledge-based economy. With its focus on the middle class, digitisation, MSME sector, and macroeconomic stability, the Union Budget sets the stage to uplift the financial status of the nation.
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Here are my picks on the key highlights of this Budget, which will positively impact the larger population:
Tax Benefits for the Middle Class
The 2023-2024 Union Budget has reduced the maximum marginal rate of tax from 42 percent to 39 percent and increased the income rebate limit from Rs 5 lakh to Rs 7 lakh. I believe that the new income tax regime is simpler and it will empower the middle class with more spending power, thereby giving the economy a boost.
Digitisation and Financial Transparency
The government is taking a major step towards digitalisation and financial transparency with the expansion of the Government digital certificate depository, Digilocker, for the fintech sector. This will make documentation availability a focus for the fintech sector, enabling ease of doing business for the startups in the process.
Additionally, the National Financial Information Registry will serve as a central repository of financial and ancillary information, enhancing transparency and security.
Benefits to Small Businesses
Small businesses will significantly benefit from the Improved Credit Guarantee and Reduced Compliances. Since these small businesses are the backbone of the economy, the 2023-2024 Budget recognises that by offering improved credit guarantee, reduced compliances, and an infusion of Rs 9,000 crore into the corpus will significantly alleviate stress in the sector. These measures will also provide more collateral-free credit guarantees.
Increased Capital Expenditure and Eased Business Compliances
With a 33 percent increase in capital expenditure to Rs 10 lakh crore, the 2023-2024 Union Budget is opening opportunities for economic growth and wealth creation. The government’s commitment to reducing compliances and decriminalising over 3,400 legal provisions will make it easier for businesses to thrive, allowing everyone to unleash their potential. This investment will create wealth creation opportunities for citizens across the income spectrum, leading to more asset management funds in India.
In conclusion, the 2023-24 Union Budget is a promising step towards achieving the growth estimate of 7 percent for FY23. It sets the stage for wealth creation opportunities and growth of country’s economy.
—The author, Abhay Bhutada, is Managing Director, Poonawalla Fincorp. The views expressed are personal.
(Edited by : C H Unnikrishnan)
First Published: Feb 2, 2023 7:24 PM IST
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