Union Budget Is Investment Oriented Which Keeps Fiscal Prudence In Mind
Push to digitisation especially in banking is welcome and setting up 75 units in various districts is the right step, says Sanjiv Chadha, MD & CEO, Bank of Baroda
Mr. Sanjiv Chadha, Managing Director & CEO, Bank of Baroda, has reacted to the Union Budget 2022-23 by Union Finance Minister Smt. Nirmala Sitharaman. He said “the Union Budget is an investment oriented one which keeps fiscal prudence in mind. Hence, while the size of the Budget has increased significantly with the focus on capex, the deficit has been reined in at 6.4% and hence indicates a graduated descent on the FRBM path. However, this deficit will still mean high borrowing comparable to that of last year. We may expect interest rates to be elevated and can look forward to the RBI to do more regular fine tuning to balance liquidity with growing demand”.
Chadha adds “there is a push on several sectors such as solar energy, EVs, housing, telecom, defence, hospitality etc. This will help to provide a push to the private sector too. The push to digitisation especially in banking is welcome and setting up 75 units in various districts is the right step. Further, the extension of the ECLGS for another year with enhanced limit will be good for the banking sector. We also see the issue of green sovereign bonds an innovative measure which will provide a boost to this category of debt market. We can see this leading down the road to further such issuances in the corporate bond market too”.