Union Budget 2022: Experts laud FM for raising the capital expenditure to Rs 7.50 lakh crore in 2022-23

New Delhi: Finance Minister Nirmala Sitharaman announced that the outlay for capital expenditure in the Union Budget is once again being stepped up sharply by 35.4 percent from Rs 5.54 lakh crore in the current year to Rs 7.50 lakh crore in 2022-23.

This has increased to more than 2.2 times the expenditure of 2019-20. This outlay in 2022-23 will be 2.9 per cent of GDP, she said. 

In terms of economic support, especially on infrastructure and taxation fronts, the Union Budget 2022 has delivered along expected lines, believe experts.

Rakesh Sharma, MD & CEO, IDBI Bank termed this Budget as a growth oriented, forward looking budget with focus on capital expenditure in the infrastructure sector, particularly in roads, railways and their associated logistics.

Amar Ambani, Senior President & Head – Institutional Equities, YES SECURITIES said, "The FM has rightly focused on doing the heavy lifting by raising capex levels and investments in infrastructure. To put it in context, the gross budgetary support of Rs 7.5 lakh crore will likely be 19% of revenue collection versus range of 12-13% in last six years. While it is not rising as a percentage of GDP, it is on the right path."

Nilesh Shah, Group President & MD, Kotak Mahindra Asset Management Co. Ltd said this budget is focussed on supporting growth through encouraging investments and encouraging entrepreneurs, starts ups and tax payers by creating trust.

"Capital expenditure has moved from 12% of budget in FY 15 to 19% of budget in FY 23. Revenue Receipt growth at 6% is significantly lower than 27% last year. This is driven by significantly lower divestment and asset Monetization target. Hopefully there is an upside on revenue receipts," he added.

Pradeep Multani, President, PHD Chamber of Commerce and Industry applauded FM for presenting a pragmatic and promising budget for Aatmanirbhar Bharat.

"Effective capital expenditure of the Government is estimated at Rs 10.68 lakh crores in 2022-23, about 4.1% of GDP, revised fiscal deficit estimated at 6.9% of GDP as against 6.8% in Budget Estimates and fiscal deficit for FY 2023 is estimated at 6.4%. We are hopeful that fiscal consolidation will be in line in the coming years, said Mr Pradeep Multani," he said.