Union Budget 2022-23 will lay the foundation for India’s economic growth and expansion for the next 25 years, Finance Minister Nirmala Sitharaman said while presenting the budget in the Lok Sabha on Tuesday. “This Union Budget seeks to lay the foundation and give a blueprint of the economy over Amrit Kal of next 25 years—from India at 75 to India at 100,” Sitharaman said while presenting her fourth union budget. She said India is in a strong position to withstand future challenges.
The Finance Minister said about the Budget, “It continues to build on the vision drawn in the Budget of 2021-22. Its fundamental tenets which included transparency of financial statement and fiscal position reflect the government’s intent, strengths and challenges.” She laid down four “priorities” of the Budget, namely: 1. PM GatiShakti; 2. Inclusive Development; 3. Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition, and Climate Action; 4. Financing of Investments.
Addressing a press conference after the Budget was presented in Parliament, FM Sitharaman asserted that the government had not increased the tax burden on the common man. Replying to queries on the middle class being left out in the budget in terms of income tax relief, she pointed out that there has been no attempt to get more revenue through tax hikes. “PM repeated the instruction he gave last year not to increase the tax burden on people during the pandemic,” she said.
The Finance Minister expressed satisfaction over the government being proved right on its fiscal assessments that were made for FY22. “Conservative may mean not being overtly and excessively optimistic. We are sure to achieve the FY23 fiscal numbers, if anything, will probably better them,” she added.
India is likely to become a $5 trillion economy by the financial year 2025-26 or 2026-27 if the GDP continues to grow at around 8%, Chief Economic Advisor V Anantha Nageswaran said on Tuesday. “If we continue to retain the path of 8% of real GDP growth, it will translate into even 8% dollar GDP growth. If we extrapolate it, we should be a $5 trillion economy in terms of nominal GDP in the Financial Year 2025-26 or the Financial Year 2026-27,” Nageswaran said during the post-Budget press conference. In 2019, Prime Minister Narendra Modi envisioned to make India a $5 trillion economy by the Financial Year 2024-25.
The Indian economy is projected to grow at 9.2% in the current financial year.
According to the Economic Survey 2021-22 tabled in Parliament on Monday, the GDP growth is likely to remain 8 to 8.5% in 2022-23 and 7.1% in 2023-24.