Bihar CM, ASSOCHAM, Bankers, Companies hails budget

Bihar Chief Minister Nitish Kumar has welcomed the Union Budget and termed it development-oriented. In his reaction to the Union Budget, Kumar hailed the provision to increase the procurement of paddy and wheat. He said, this is a pro-farmer decision.  Kumar said, the development of basic infrastructure in the country on a large scale is also a commendable move in the Budget.The Chief Minister also praised the provision of construction of 80 lakh new houses under Pradhan Mantri Awas Yojana.Kumar said, the Budget paves the way for an increase in allocation to states in Central Taxes which will ensure availability of larger amounts this year and next year to the states.
ASSOCHAM has welcomed Finance Minister Nirmala Sitharaman's decisions to focus on Green Energy and reducing logistics costs in the Union Budget. It said Finance Minister has outlined the vision to boost the growth of MSMEs in 2022-23 in the budget.

Many companies and bankers also welcomed the budget proposals. They are of the opinion that it will boost infrastucture  and MSME. 

“The Union Budget for 2022-23 seeks to support the recent economic growth momentum India has seen, and help it sustain over the long-term. The substantial rise in planned capital expenditure for creation of infrastructure, focus on affordable housing, welfare & development of MSMEs, and the farm economy will prepare India for the next phase of growth. This can lead to creation of millions of new jobs, helping India leverage its young demographic dividend. The new business opportunities and enterprises that will come up due to these projects will also benefit the banking sector.The extension in timeline and increased outlay towards ECLGS and additional infusion of funds in the Credit Guarantee Trust for Micro and Small Enterprises will provide relief to MSMEs, especially those engaged in contact-intensive sectors, who have been adversely impacted due to the pandemic. The significant additional allocation towards PM Awas Yojana will boost demand for affordable housing, and in turn demand for housing finance. It was also heartening to hear about the Prime Minister’s Development Initiative for the North East Region find special mention in the Budget, in line with the capex projects planned for the rest of the country”.- Chandra Shekhar Ghosh, MD & CEO, Bandhan Bank:      

“The FM has delivered a Union Budget today that was clearly focussed on economic recovery through increased capital expenditure for the country’s growth. The push towards self-reliance reveals the government’s steadfast intention to achieve the long-term goal of ‘Atmanirbhar Bharat’. The extension of the ECLGS scheme till March 2023, as well as the expansion of the guarantee cover by ₹50,000 crore to ₹5 lakh crore is a welcome sign for the NBFC sector and over 130 lakh MSMEs. The thrust to digitise India and the focus on the fintech segment will help enhance financial inclusion. The affordable housing segment also received a boost today, with the allocation of Rs 48,000 crore under the PMAY urban and rural schemes.” Ajay Pareek, Chief Business Officer, Fullerton India.

"Union Budget 2022 confirms more crypto adoption on the way as it presents fine-tuned clarity on the crypto landscape. There will be a sensational boom for cryptocurrency as more emerging investor classes begin to recognize the potential of it, leading to more blockchain innovations. Yet another step towards positive crypto regulations and taxation clarity. " Mo Akram, Ideator, MetaSpace.

Cryptocurrency seems to have caught the government’s attention after FM recognised the currency as virtual digital assets. However, the biggest eye-catching part is the government’s decision on crypto taxation. It is noteworthy to consider this move as a progressive step towards monitoring, authenticating and regulating the crypto ecosystem in the country and bringing possible transformations. The highlight of the Budget for me is that India will be launching its own digital currency by next year. It’s a historic move as people are finally clear that digital currency is here to stay and can make a rational choice while investing in cryptocurrency.  I hope this catches on and banks, too, start getting involved with the crypto industry as well- Abhay Aggarwal, Founder & CEO, Colexion.

Startups have got a boost in this year’s Union Budget. Among the many incentives proposed in the Budget is the reduction of voluntary exit, where the government has allowed the closure of a private limited company in 6 months of non-functioning. This will not only help accelerate and provide relief to startups wanting to shut a business but encourage them to experiment. Earlier they had to run the company for 18 months, even after closure, to avail of the benefit of the Fast Exit facility. The surcharge on Long Term Capital Gain (LTCG) has been capped to 15%, which is again a good move to bring more HNIs into startup Angel investment, Amit Singal, General Partner, Fluid Ventures.