Budget 2023: Insurance sector key to India’s $5 trillion economy dream

Union Finance Minister Nirmala Sitharaman on Wednesday presented the last full budget of the BJP government ahead of the general elections in 2024 where she also emphasised the growth-related areas that would bolster the country to become a 5 trillion economy.

'Capital investment outlay rose by 33 per cent', says Finance Minister

Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2023 announced that capital investment outlay has risen by 33 per cent by the central government for the third consecutive year to Rs 10 lakh crore for strengthening the Capital Expenditures (Capex). 

The spending would amount to 3.3 percent of India’s GDP. The Capital Expenditure announced in the Budget was three times the outlay made in 2019-20. 

However, the ‘Effective Capital Expenditure’ of the Government is set at Rs 13.7 lakh crore, which would be 4.5 percent of the GDP. 

Speaking about the government’s investment in Capex, Finance Minister Nirmala Sitharaman stated how this rise in the last few years has enhanced the growth potential to provide support against global force.

She also said that the tax receipts for the next fiscal are budgeted at Rs 23.3 lakh crore and stated that it would be allowed 3.5 per cent of GDP as a fiscal deficit.

Government made cash transfers of Rs 2.2 lakh crore 

While presenting the Budget, Finance Minister Nirmala Sitharaman said the government made a cash transfer of Rs 2.2 lakh crore under the PM-KISAN scheme. She said the aim of the government is to achieve a knowledge-driven economy.

Initiatives such as PM-KISAN, PM-Fasal Bima Yojana, and forming agriculture infrastructure fund have provided much-needed support to the sector.

She also said that the fiscal deficit would be brought down to 4.5 percent by 2025-2026. 

Meanwhile, after Sitharaman presented the Union Budget, Raksha Mantri exuded confidence and said that the Budget shows government's commitment to support all sections such as small businesses owners, farmers, and professionals alike.

The Budget demonstrates the government’s commitment towards supporting growth and welfare oriented policies that will benefit all sections of society including small businesses owners, farmers, and professionals alike.

— Rajnath Singh (@rajnathsingh)

He added, "The Union Budget 2023-24 is expected to bring about positive changes in the country that will lead us towards achieving our goal of becoming a $5 trillion economy and ‘Top Three’ economies within few years."

The Union Budget 2023-24 is expected to bring about positive changes in the country that will lead us towards achieving our goal of becoming a $5 trillion economy and ‘Top Three’ economies within few years.

— Rajnath Singh (@rajnathsingh)