Union Budget is ensuring a multiplier effect for growth momentum in all sectors: Nirmala Sitharaman

by Diplomatist Bureau - 20 February, 2023, 12:00 2672 Views 0 Comment

The central government is ensuring that the public expenditure continues to grow to have a desired multiplier effect on all the sectors as per the directions set by the Honourable Prime Minister of India, Shri Narendra Modi, stated the Union Finance Minister, Smt Nirmala Sitharaman at the Post Budget Session of PHD Chamber of Commerce and Industry (PHDCCI).

“For the last 3-4 years, there has been a consistent emphasis on public capital expenditure, such as in last year’s budget, and this year’s budget has seen a 30 percent increase in capital expenditure. This is the first time in many years that the capital expenditure has reached a double-digit amount, making it the clear focus of this budget,” the Union Finance Minister explained.

The Union Finance Minister also stated that Capital expenditure has the potential to benefit a range of core industries, making it an effective way to ensure that money is directed to the right places and generate multiplier effects. “However, we must also ensure that we take care of those who need it most. As such, we will continue with the free food programme throughout this year, ensuring that no family is left without food. In addition to inclusion, our major focus should be on Micro, Small and Medium Enterprises (MSMEs), which are the backbone of the Indian economy and important job creators. Unlike large units that are often located in specific places to leverage scale, MSMEs are spread throughout the country, creating local employment wherever they are found.”

She also informed that the central government is collaborating with the states, as well as the Tier III administrations, such as the Panchayats or ward-level administrations, to ensure that MSME priorities remain at the top of the agenda.

She also informed about the importance of women’s empowerment, as a significant portion of the self-help groups (SHGs) in the villages are actually women’s groups. In fact, there are more than 81 lakh women’s SHGs in the country. To ensure that these groups have greater access to resources, professional assistance, and market linkages, we are adding branding and market finding activities to their portfolio. With these initiatives, we hope to enable true women’s empowerment, allowing them to scale up their activities and run a professional, profitable, and government-supported women’s group.

Speaking at the session Shri Saket Dalmia, President PHD Chamber lauded the Government’s focus on short-term needs of the economy as well as the long-term vision to  make India a Developed Nation by 2047. He said that the rise in farm incomes,  the well-established linkage of agriculture sector with Industry and  innovative solutions for this sector will be a stepping stone towards  achieving our goal of inclusive development.

Shri Hemant Jain, Vice President, PHD Chamber gave the concluding remarks. He appreciated the govern­m­ent for increas­ed tax collections and cont­­­ai­­­­n­ment of fiscal deficit.


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