IIM Visakhapatnam organized a panel discussion on “Decoding the Union Budget in the Era of Amrit Kaal” on 4th February 2023 (Saturday) in virtual mode. The eminent panelists 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 of 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 policy maker's prudence since liberalization in 1991, has kept the Indian economy stable firm-footed in an era of global uncertainty. In the current year, the increased capital expenditure will bring in 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 the youth and women, notably the support to SHGs and youth skilling programs shall 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 owing to spending on capital deficit and not due to revenue deficit. He is also appreciative of the fact that personal tax incentives were announced which shall bring more people into the tax base, without 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 many developed countries where recession is highly likely. India is growing despite global recession because of its futuristic and foresighted vision of consequent policy makers. 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 than outlays, so as to focus on efficiency as a core principle in budgeting exercise.
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 a scope for improvement in the 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 policy-makers mind and was appreciated by all participants.
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