Union Budget demonstrates a clear commitment to stimulating economic growth through strategic investment in infrastructure
Prasun Sikdar, MD & CEO, ManipalCigna Health Insurance
FinTech BizNews Service
Mumbai, February 2, 2024: The leading BFSI voices have responded to the Union Budget 2024, presented by the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman in the Parliament in New Delhi.
Tarun Chugh, Bajaj Allianz Life Insurance: “We welcome the interim budget for FY25 as it demonstrates a clear commitment to stimulating economic growth through strategic investment in infrastructure, coupled with proactive measures to manage inflation. The notable 11% increase in capex outlay promises significant expansion for infrastructure development, given the strong base of last two years.
Amrit kal will indeed mark a golden era for our youth, as the budget's visionary approach underscores the government's commitment to their empowerment and the nation's prosperity. Moreover, the heightened emphasis on affordable housing is poised to drive rural demand, while the provision of long-term financing at low/nil interest rates strategically benefits Research &Innovation in technology. This forward-looking strategy sets the stage for sustained growth and opportunity, reinforcing the government's dedication to nurturing a flourishing future for all.
As we embark on the next phase of development, Bajaj Allianz Life remains dedicated to supporting our customers in navigating financial challenges and seizing opportunities for ensuring their Life Goals remain on track. Together, we look forward to contributing to India's journey towards sustained growth and prosperity”
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Prasun Sikdar, MD & CEO, ManipalCigna Health Insurance: "The Interim Budget 2024 reflects a growth-oriented approach, particularly emphasizing the healthcare sector. The extension of health coverage under the Ayushman Bharat scheme to ASHA, Anganwadi workers, and helpers is commendable, especially for enhancing insurance penetration among women and to propel India towards 'Insurance for All' by 2047. Consolidating existing schemes for maternal and child healthcare into one comprehensive program promises smoother implementation. Additionally, the government's initiative to encourage vaccination against cervical cancer among girls aged 9-14 demonstrates a proactive stance toward preventive healthcare. These measures collectively signify a significant step toward safeguarding public health and promoting overall well-being. It sets a prudent foundation for India's robust future.”
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Tirthankar Patnaik, PhD, Chief Economist, National Stock Exchange of India: The Interim Union Budget FY25 focuses on growth, welfare and fiscal prudence, while ensuring policy continuity. The focus on capacity building through higher spending on hard as well as soft infrastructure and consequently facilitating job creation has continued. Capex now is the highest in 26 years, as share of GDP (3.4%), with a CAGR of 27% in the last five years. Focus areas have remained housing, roads, railways, defence and solar. The welfare of four major ‘castes’, the poor, farmers, women and youth is recognized as being crucial to the overall well-being of the country and its long-term economic growth.
While there were no tax changes in an interim budget, the tax regime has been rationalized over the years to ensure stability and certainty. This is reflected in tax collections over the years, with direct tax to GDP ratio at 6.6% being the highest since 1980s.
The support to growth and welfare has come without compromising on fiscal restraint. Notwithstanding a lower-than-budgeted nominal GDP growth, FY23RE at 5.8% undershoots BE by 10bps, aided by strong tax buoyancy. Fiscal deficit budgeted at 5.1% for FY25 based on reasonable estimates, with a commitment to bring it down to sub-4.5% in the following year.
Market borrowings at Rs 14.1 lakh crores is expected to fund 70% of the deficit, with 28% funded by small savings.
Overall, the budget ensures economic stability and growth while providing a welfare umbrella for the Indian population.
