Page 7 - Revised_Interactive_IIM(V)ibes_Newsletter 18th July

PANEL DISCUSSION ON “DECODING THE UNION

BUDGET IN THE ERA OF AMRIT KAAL’

04 February:

IIM Visakhapatnam organized a panel discussion on “Decoding the Union Budget in the Era of Amrit Kaal” on 4
February 2023 (Saturday) in virtual mode. The eminent panellists were Prof. N. R. Bhanumurthy, Dr. Charan Singh, and
Dr. Manoranjan Sharma. The discussion was moderated by Prof. Kalyan Kolukuluri, faculty in the Economics and Social
Science Area of IIM Visakhapatnam. Prof. Tamali Chakraborty and Prof. Asmita Verma warmly welcomed all panelists
and participants. Coordinator of Academics and Research at IIM Visakhapatnam, Prof. Shiv Shankar Singh Patel,
provided his introductory remarks and shared his thoughts on the importance of understanding the union budget.
Dr. Charan Singh emphasized that the Union budget has followed a continuity since the last fiscal year, and the
budget focused on the economy’s long-term growth. He stated that the Indian policymaker’s prudence since
liberalization in 1991, has kept the Indian economy stable and firm-footed in an era of global uncertainty. In the
current year, the increased capital expenditure will have a multiplier effect, and will indeed crowd in private
investments. He explained how the budget has been focused on setting up the Indian economy to reap a
demographic dividend in the near future. He emphasized how schemes to empower youth and women, notably the
support for SHGs and youth skilling programmes, will bring them into the workforce. He concluded by saying the
budget is forward-looking and growth oriented.

Prof. N. R. Bhanumurthy stated that investment in capital expenditure is a futuristic vision as it will make the Indian
economy steadier in the future. He stated that though the fiscal deficit might appear large, it is due to spending on
capital deficits and not a revenue deficit. He is also appreciative of the fact that personal tax incentives were
announced, which will bring more people into the tax base without an additional tax burden. He mentioned that India
would grow at 6.8 percent; according to the Economic Survey 2022, India’s growth rate is still much higher than that
of many developed countries, where recession is highly likely. India is growing despite the global recession because
of the futuristic and foresighted vision of its policymakers. However, he also mentioned that he predicts that
agriculture may face a crisis in the next fiscal year. According to him, in the future, analysts, policymakers, and others
must focus on outcomes rather than outlays so as to focus on efficiency as a core principle in budgeting exercises.

Dr. Manoranjan Sharma provided an overview of the impact of the Union budget in various sectors like MSME,
agriculture, energy, and the banking sector. He mentioned that the banking sector had seen a profit since last year.
The budget has emphasized green growth and sustainable development. However, he felt there might be scope for
improvement in sectors like health, education, and employment. IIM V students and faculty participated
enthusiastically with very inquisitive queries. The session gave a birds-eye view of the multi-faceted union budget
and gave an insight into the policymakers’ minds and was appreciated by all participants.

Vol 4 | Issue 2 | Jan-April 2023 | 05