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By Shanti Ekambaram, Group President – Consumer Banking, Kotak Mahindra Bank Limited

Union Budget 2022-23 focusses on key growth engines of the economy - infrastructure, education, healthcare, housing and rural development. Finance Minister Nirmala Sitharaman has focused on allocation to build the foundation for economic growth over many years.

The government has set a capital expenditure target of Rs. 7.5 lakh crore for FY 23 from Rs 5.54 lakh earlier. The budget has allocated Rs 1 lakh crore to states for the PM Gati Shakti-related projects and for other productive investments. Extension of the Emergency Credit Line Guarantee Scheme until March 2023 is a welcome move to infuse further liquidity in the MSME sector. A sum of Rs 48,000 crore is allotted for the PM Awas Yojana that will benefit 60,000 houses in rural and urban segments. Introduction of a Digital Rupee by RBI and setting up of 75 digital banking units in 75 districts by commercial banks is a big boost to the digital ecosystem. The government has given ample allocation to provide a framework for businesses to invest and grow. 

In the second consecutive year of the COVID-19 pandemic, the budget has focused on the right areas to put the economy on fast-track.

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