Let’s discuss what all was announced around capital expenditure and investments and how the FM plans to steer the economy through the shackles of the pandemic towards growth and prosperity!
Although there was no announcement regarding changes in personal income tax slabs or the abolishment of long-term capital gains tax on equities, what stole yesterday’s show was the FM’s announcement that capital expenditures worth Rs 7.5 lakh crores will be incurred for FY23, up 35.4% from Rs 4.54 lakh crore.
The FM announced plans to expand the national highways network by 25,000 km in FY23, and Rs 20,000 crores will be mobilised for the same. The government has also announced Rs 2.37 lakh crore direct payment to 1.63 crore farmers for the procurement of wheat and paddy.
What Does It Mean?
60 lakh new jobs will be created under the production-linked incentive (PLI) scheme in 14 sectors. These PLI schemes have the potential to create an additional production of Rs 30 lakh crore.
The budget turned out to be an eventful one for the investors as it plans to create jobs and fill the much-needed cash in the common man’s pocket, which, in turn, would spur consumer demand and keep the wheel of India’s growth spinning!
The Road Ahead For Investors
With the announcement of the Union Budget, one major event has surpassed the stock market investors. Now, the upcoming elections in five major Indian states and the US Federal Reserve’s stance on hiking the interest rates in their country will set the tone of the stock markets for the rest of the year. Although not all the announcements made in the budget will be implemented within the next fiscal year, for now, the buzz around the much-awaited budget is over!