Budget 2023: Bankers Hail Fiscal Consolidation & Welfare Measures

Mumbai, Feb 1 (PTI) Bankers have hailed the government's final budget for its focus on fiscal consolidation and welfare measures, which will help every citizen of the country.

SBI chairman Dinesh Khara said the document presented by Finance Minister Nirmala Sitharaman has laid out a "reinforced architecture of big possibilities", which will help every India, especially the ones on the fringe and vulnerable.

Industry lobby grouping Indian Banks Association's chairman and state-owned Punjab National Bank's managing director and chief executive A K Goel said the Budget is aiming to provide more opportunities for the lower end of the pyramid.

The government's resolve to focus on inclusive growth with sustainable development has been reinstated, he said, stressing that banks have played a key role in the success of a slew of schemes.

"The interim budget has laid out an affirmative action of fiscal glide path towards 4.5 per cent in FY26. The heartening news is that the anticipated tax buoyancy in FY24, excluding the outlier pandemic year is the highest in 7 years," Khara said.

Goel said narrowing the fiscal deficit to 5.1 per cent in FY25 from 5.8 per cent in FY24 is a "positive signal" to the market.

"Sticking to the fiscal consolidation roadmap shows the resolve of the government to maintain discipline in finances," he added.

Foreign lender Standard Chartered Bank's country head the budget document focuses on key themes like consistency, innovation and sustainability.

"The Rs one lakh crore corpus setup to provide low cost and long-term financing to sunrise sectors will provide a jump start to private sector research and innovation," she said, adding that efforts to meet the 'net-zero' commitments through viability gap funding and financial assistance measures for offshore wind and biomass aggregation will also be helpful.

Private sector lender Kotak Mahindra Bank's wholetime director KVS Manian also welcomed the commitment to narrow the fiscal deficit.

"The minister is showing strong intentions, ahead of the election year, to adhere to the fiscal consolidation path and will be well received by rating agencies as well as the global investors that are eyeing India as an attractive investment destination," he said.

Indian Bank MD and CEO SL Jain said the interim Budget underscores the resilience and potential of the economy. The focus on infrastructure, including projects for tourism, expansion of metro railheads and other trains to more cities, and support for EV manufacturing and charging infrastructure, aligns with the developmental goals.

The interim Budget focuses on inclusive development and is a step forward in the USD 5 trillion economy aspirations. The focus on the housing sector will benefit a range of peripheral sectors like cement, paints, and steel, among others, and create employment opportunities. The focus on women empowerment will further boost the economy, Bandhan Bank MD and CEO Chandra Shekhar Ghosh, said.