: Budget 202223 will be more directional with longterm growth, says Goyal #finance #StockMarketNEWS Budget 2022-23 will be more directional with long-term growth, says Goyal New Delhi, Feb 7 (KNN)

Budget 202223 will be more directional with longterm growth, says Goyal #finance #StockMarketNEWS
Budget 2022-23 will be more directional with long-term growth, says Goyal New Delhi, Feb 7 (KNN) On February 1, the government presented a budget with no tax increases and thus no new revenue generation measures but chose to do record borrowings to fund a budgeted 35 percent increased capital investment at Rs 7. 5 lakh crore.

Stating that the budget 2022-23 is more directional with a quarter of a century of sustained growth in mind, Minister Piyush Goyal sought to deflect criticism in certain quarters that the government focused more on the supply-side than on growth-boosting demand side of the economy.

"I am surprised at the criticism in a section of the industry that the budget is supply-side focused while what was more needed was boosting demand", said Goyal.

Demand has been the biggest missing link in the economy even before the pandemic hit the nation and scuppered the last strain of demand as those who had money chose to save and not splurge while tens of millions became jobless, Goyal added.

The fact is that this is a direction setting budget, with clear focus on the macro as well as micro issues plaguing the economy.

Such a focus will lead to a faster and deeper trickle-down effect. Because through this budget, the government wants to work towards a much brighter future for everyone by the time we celebrate the first century of our independence," Goyal told a post-budget gathering of industry representatives organized by the BSE.

Together with the states, the overall capital expenditure next fiscal will be at a record high of Rs 10. 5 lakh crore.

This will have the government borrowing hitting a historic high with gross borrowing at Rs 14. 95 lakh crore and net borrowing of Rs 11. 6 lakh crore.

Those criticizing the budget are missing the key point that most of the time supply side push also creates demand as a resilient supply-chain is crucial to secure sustained growth over the long-term.

"So when we are pumping in so much money in capex (Rs 7. 5 lakh crore by the Centre and Rs 3 lakh crore by the states, which is the biggest demand push any government has given in a year) there will be all-round demand generation in all key sectors of the economy be it cement, steel or other metals which will an impact on overall demand too," he explained.

Moving on to exports, which are already a record high by crossing USD 336 billion by January, he said he is doing everything to ensure that we cross the USD 400 billion target set for the next fiscal by mid-way.

Towards this the government is speeding up free trade talks with key nations such as Britain, Canada and Australia and also began with the GCC nations.