Yojana Magazine March 2023 - 3 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

 Page 1


49 March 2023
he Finance Minister has presented a 
phenomenal Budget with a difference. 
It is in continuation of the reform 
process through budgets presented in 
the past, laying down the foundation and a clear 
path for India@100 Amrit Kaal. The Minister has 
rightly identified objectives, assigned priorities, 
recognised constraints, technological innovations 
in the world economy and the needs of Indians 
& Indian Industry, incorporating the mission and 
vision of the Prime Minister. The Budget is a 
well-planned document which presents a clear-
cut roadmap for India’s tomorrow.  
The budget has laid a foundation for catering 
to the needs and aspirations of Millennials 
and Generation Z in India@100. Given the 
GDP growth of 7% in 2022-23 with controlled 
inflation at 6.8% and Fiscal Deficit at 6.4%, India 
has moved to a higher pedestal amongst top five 
world economies in every sphere of its activity and 
amongst the top three world economies on PPP 
basis having GDP of over US$ 10 Trillion. This 
budget would enhance global competitiveness 
strengthening  
the Financial sector T
The Budget 2023-24 laid a blueprint for India@100. The inclusive 
Budget focussed on growth and employment generation besides boosting 
infrastructure and development through self-reliance, transparency 
and digitalisation. The budget proposals would empower youth, women, 
farmers, scheduled castes, scheduled tribes, senior citizens, BPL families, 
MSMEs, and people affected by the pandemic. It has used innovative 
methods of financing various projects using PPP mode, which will all add to 
the growth and help build the economy’s productive capacity and jobs.
and ensure a sound sustainable future for India 
and the Indian industry on account of inducing 
transparency, accountability and sustainability 
through digital influx in all spheres of public and 
private lives and livelihood. 
Budget 2023 is growth oriented; employment 
generating; infrastructure expanding budget with 
a focus on development through Atmanirbharta, 
transparency & digitalisation; repealing laws 
towards ease of doing business; bringing 
dynamism in tax structure with a portfolio 
approach.  The Budget, through reorienting 
tax slabs, reducing surcharges to individuals, 
corporates and associations provides more 
liquidity to the middle class while targeting 
to control evasion or avoidance of taxes. The 
re-mention of RBI issuing Digital Currency in 
2023-24 having test run initiated in November 
2022  will help India increase productive 
efficiency and global competitiveness of the 
economy while containing inflation in medium 
term, facilitating ease of doing business and ease 
of living in tune with the latest technological 
dr aman agarwal dr yamini agarwal Director & Professor of Finance, Indian Institute of Finance, Gr. Noida. Email: aa@iif.edu
Director & Professor of Economics & Finance, Bharati Vidyapeeth (Deemed-to-be-University), Institute of Management and 
Research, Delhi. Email: yamini.agarwal@bharatividyapeeth.edu
49 MArCh 2023
Page 2


49 March 2023
he Finance Minister has presented a 
phenomenal Budget with a difference. 
It is in continuation of the reform 
process through budgets presented in 
the past, laying down the foundation and a clear 
path for India@100 Amrit Kaal. The Minister has 
rightly identified objectives, assigned priorities, 
recognised constraints, technological innovations 
in the world economy and the needs of Indians 
& Indian Industry, incorporating the mission and 
vision of the Prime Minister. The Budget is a 
well-planned document which presents a clear-
cut roadmap for India’s tomorrow.  
The budget has laid a foundation for catering 
to the needs and aspirations of Millennials 
and Generation Z in India@100. Given the 
GDP growth of 7% in 2022-23 with controlled 
inflation at 6.8% and Fiscal Deficit at 6.4%, India 
has moved to a higher pedestal amongst top five 
world economies in every sphere of its activity and 
amongst the top three world economies on PPP 
basis having GDP of over US$ 10 Trillion. This 
budget would enhance global competitiveness 
strengthening  
the Financial sector T
The Budget 2023-24 laid a blueprint for India@100. The inclusive 
Budget focussed on growth and employment generation besides boosting 
infrastructure and development through self-reliance, transparency 
and digitalisation. The budget proposals would empower youth, women, 
farmers, scheduled castes, scheduled tribes, senior citizens, BPL families, 
MSMEs, and people affected by the pandemic. It has used innovative 
methods of financing various projects using PPP mode, which will all add to 
the growth and help build the economy’s productive capacity and jobs.
and ensure a sound sustainable future for India 
and the Indian industry on account of inducing 
transparency, accountability and sustainability 
through digital influx in all spheres of public and 
private lives and livelihood. 
Budget 2023 is growth oriented; employment 
generating; infrastructure expanding budget with 
a focus on development through Atmanirbharta, 
transparency & digitalisation; repealing laws 
towards ease of doing business; bringing 
dynamism in tax structure with a portfolio 
approach.  The Budget, through reorienting 
tax slabs, reducing surcharges to individuals, 
corporates and associations provides more 
liquidity to the middle class while targeting 
to control evasion or avoidance of taxes. The 
re-mention of RBI issuing Digital Currency in 
2023-24 having test run initiated in November 
2022  will help India increase productive 
efficiency and global competitiveness of the 
economy while containing inflation in medium 
term, facilitating ease of doing business and ease 
of living in tune with the latest technological 
dr aman agarwal dr yamini agarwal Director & Professor of Finance, Indian Institute of Finance, Gr. Noida. Email: aa@iif.edu
Director & Professor of Economics & Finance, Bharati Vidyapeeth (Deemed-to-be-University), Institute of Management and 
Research, Delhi. Email: yamini.agarwal@bharatividyapeeth.edu
49 MArCh 2023 50 March 2023
developments taking the economy to a higher 
platform. 
The budget proposals would directly benefit 
India, its youth, women, farmers, scheduled 
castes, scheduled tribes, senior citizens, BPL 
families, MSMEs, “have nots”, and those 
suffering from the ill effects of the pandemic. 
The meaning of money has changed from cash 
to digital currency. The ease with which one can 
transfer money 24X7 with the click of a button 
from anywhere at low cost and affordable means 
has empowered the common man. Financial 
Inclusion through schemes like Pradhan Mantri 
Jan Dhan Yojana; Aayushman Bharat; Pradhan 
Mantri Jeeven Bima Yojana; Pradhan Mantri 
Suraksha Bima Yojana; Pradhan Mantri Mudra 
Yojana; Stand Up India; Crop Insurance; 
Emergency Credit Guarantee Scheme and 
others with Aadhaar as its backbone provides 
security and authenticity. It thus enables the 
poorest of the poor, women, farmers, youth, 
senior citizens and the MSMEs to seek social 
security and credit from the financial system 
appreciated for its robustness and resilience 
globally by institutions like the World Bank. 
The Government has, in the long 
drawn process of reforms strengthened the 
ability of the last mile advantage through 
a resilient financial system. It was much 
needed that post pandemic recoveries are 
supported by the government to ensure 
that the poorest of the poor receive the 
benefits of the continued economic 
growth pegged at 7%. The setting up of 
Post Office Banking as core banking in 1.5 
lakh Post Offices and 75 Digital Banking 
units (DBUs) in 75 districts by SCBs is 
empowering the rural consumers with 
financial liquidity and mobility via JAM 
Trinity. Encouraging a Digital Payments 
ecosystem that is economical and friendly 
will ensure the formalisation of the 
economy and industry. Digitalisation for 
India@100 will help generate wealth, 
bring ease of doing business, improve 
livelihood through enhanced employment, 
double farmer income through DBT at 
MSP and induce efficiency in currency markets. 
This process will help increase multi-fold the 
productive capacity of the economy and general 
employment at large scale at all levels.
The budget aims to provide the means to 
strengthen the social safety net through Mahila 
Samman Bachat Patra. It is an attempt to secure 
the small savings of women who find no means 
or instruments dedicated to their effort of small 
savings which help them and their family in 
difficult times. The attempt to reach the millions 
of women, especially the less privileged, is 
the most innovative and effective structure of 
defining financial systems as means and ways 
of reducing the gender gap in various financially 
available systems. Savings of the women would 
also potentially secure the financial system as 
these savings are often used only in dire needs. 
This would improve the saving rate in the 
financial system and also make women at the 
grassroots level incentivised to be part and parcel 
of the economic development and prosperity 
through interest earning.
Another key feature that touches the 
common man, poor and vulnerable groups and 
50 MArCh 2023
Page 3


49 March 2023
he Finance Minister has presented a 
phenomenal Budget with a difference. 
It is in continuation of the reform 
process through budgets presented in 
the past, laying down the foundation and a clear 
path for India@100 Amrit Kaal. The Minister has 
rightly identified objectives, assigned priorities, 
recognised constraints, technological innovations 
in the world economy and the needs of Indians 
& Indian Industry, incorporating the mission and 
vision of the Prime Minister. The Budget is a 
well-planned document which presents a clear-
cut roadmap for India’s tomorrow.  
The budget has laid a foundation for catering 
to the needs and aspirations of Millennials 
and Generation Z in India@100. Given the 
GDP growth of 7% in 2022-23 with controlled 
inflation at 6.8% and Fiscal Deficit at 6.4%, India 
has moved to a higher pedestal amongst top five 
world economies in every sphere of its activity and 
amongst the top three world economies on PPP 
basis having GDP of over US$ 10 Trillion. This 
budget would enhance global competitiveness 
strengthening  
the Financial sector T
The Budget 2023-24 laid a blueprint for India@100. The inclusive 
Budget focussed on growth and employment generation besides boosting 
infrastructure and development through self-reliance, transparency 
and digitalisation. The budget proposals would empower youth, women, 
farmers, scheduled castes, scheduled tribes, senior citizens, BPL families, 
MSMEs, and people affected by the pandemic. It has used innovative 
methods of financing various projects using PPP mode, which will all add to 
the growth and help build the economy’s productive capacity and jobs.
and ensure a sound sustainable future for India 
and the Indian industry on account of inducing 
transparency, accountability and sustainability 
through digital influx in all spheres of public and 
private lives and livelihood. 
Budget 2023 is growth oriented; employment 
generating; infrastructure expanding budget with 
a focus on development through Atmanirbharta, 
transparency & digitalisation; repealing laws 
towards ease of doing business; bringing 
dynamism in tax structure with a portfolio 
approach.  The Budget, through reorienting 
tax slabs, reducing surcharges to individuals, 
corporates and associations provides more 
liquidity to the middle class while targeting 
to control evasion or avoidance of taxes. The 
re-mention of RBI issuing Digital Currency in 
2023-24 having test run initiated in November 
2022  will help India increase productive 
efficiency and global competitiveness of the 
economy while containing inflation in medium 
term, facilitating ease of doing business and ease 
of living in tune with the latest technological 
dr aman agarwal dr yamini agarwal Director & Professor of Finance, Indian Institute of Finance, Gr. Noida. Email: aa@iif.edu
Director & Professor of Economics & Finance, Bharati Vidyapeeth (Deemed-to-be-University), Institute of Management and 
Research, Delhi. Email: yamini.agarwal@bharatividyapeeth.edu
49 MArCh 2023 50 March 2023
developments taking the economy to a higher 
platform. 
The budget proposals would directly benefit 
India, its youth, women, farmers, scheduled 
castes, scheduled tribes, senior citizens, BPL 
families, MSMEs, “have nots”, and those 
suffering from the ill effects of the pandemic. 
The meaning of money has changed from cash 
to digital currency. The ease with which one can 
transfer money 24X7 with the click of a button 
from anywhere at low cost and affordable means 
has empowered the common man. Financial 
Inclusion through schemes like Pradhan Mantri 
Jan Dhan Yojana; Aayushman Bharat; Pradhan 
Mantri Jeeven Bima Yojana; Pradhan Mantri 
Suraksha Bima Yojana; Pradhan Mantri Mudra 
Yojana; Stand Up India; Crop Insurance; 
Emergency Credit Guarantee Scheme and 
others with Aadhaar as its backbone provides 
security and authenticity. It thus enables the 
poorest of the poor, women, farmers, youth, 
senior citizens and the MSMEs to seek social 
security and credit from the financial system 
appreciated for its robustness and resilience 
globally by institutions like the World Bank. 
The Government has, in the long 
drawn process of reforms strengthened the 
ability of the last mile advantage through 
a resilient financial system. It was much 
needed that post pandemic recoveries are 
supported by the government to ensure 
that the poorest of the poor receive the 
benefits of the continued economic 
growth pegged at 7%. The setting up of 
Post Office Banking as core banking in 1.5 
lakh Post Offices and 75 Digital Banking 
units (DBUs) in 75 districts by SCBs is 
empowering the rural consumers with 
financial liquidity and mobility via JAM 
Trinity. Encouraging a Digital Payments 
ecosystem that is economical and friendly 
will ensure the formalisation of the 
economy and industry. Digitalisation for 
India@100 will help generate wealth, 
bring ease of doing business, improve 
livelihood through enhanced employment, 
double farmer income through DBT at 
MSP and induce efficiency in currency markets. 
This process will help increase multi-fold the 
productive capacity of the economy and general 
employment at large scale at all levels.
The budget aims to provide the means to 
strengthen the social safety net through Mahila 
Samman Bachat Patra. It is an attempt to secure 
the small savings of women who find no means 
or instruments dedicated to their effort of small 
savings which help them and their family in 
difficult times. The attempt to reach the millions 
of women, especially the less privileged, is 
the most innovative and effective structure of 
defining financial systems as means and ways 
of reducing the gender gap in various financially 
available systems. Savings of the women would 
also potentially secure the financial system as 
these savings are often used only in dire needs. 
This would improve the saving rate in the 
financial system and also make women at the 
grassroots level incentivised to be part and parcel 
of the economic development and prosperity 
through interest earning.
Another key feature that touches the 
common man, poor and vulnerable groups and 
50 MArCh 2023 51 March 2023
senior citizens whose only resources for other 
incomes are their savings in Monthly Income 
Schemes (MIS) or senior citizens for which 
the saving limits have been enhanced keeping 
in view the progress we have made in our 
economic development and present needs of 
people. In order to give people the ability to seek 
other resources of income and take advantage 
of the growing corporate world, it is a welcome 
step to recognise that people’s participation can 
be increased in the capital markets through the 
education fostered under the umbrella of SEBI. 
The more people are educated about the capital 
markets, the more they can make it as another 
source of income for themselves by participating 
at affordable means. This would further ensure 
that the corporates can also raise money through 
deep capital markets as retail participation 
would improve. Also, education would ensure 
that speculation is converted into investments 
that garner support for economic development. 
The launching of Digital University, One-
Class-One-TV channel under PM e-Vidya 200 
TV channels will supplement equitable right to 
education in national and regional languages for 
classes 1-12, setting up of 750 virtual labs in 
science and mathematics along with 75 skilling 
e-labs for simulate learning environment. 
Development of high quality e-content in all 
spoken languages for delivery via internet, 
mobile, TV, radio will equip teachers with 
digital tools of teaching and facilitating better 
equitable learning outcomes throughout the 
country for all irrespective of income or status. 
NPAs continue to be a challenge, especially 
with its legacy baggage of the world financial 
crisis of 2007-08 and the post pandemic effect. 
The Insolvency and Bankruptcy Act (IBA) 
provided for the strengthening of creditors’ 
rights has enabled the banking system to 
exert their rights and protect the money of the 
depositors. Yet the constant challenge for most 
bankers is the inability to communicate any 
defaults or delimit any individual or company 
which has a default credit history. The veil of the 
corporates protects and hides many borrowers 
in terms of their capacity and ability to borrow. 
The budget provides for meeting the need for 
a National Financial Information Registry to 
serve as the central repository of financial and 
ancillary information. This would strengthen 
the financial system and its intermediaries by 
making borrowers more accountable for their 
borrowings. The ability to serve the institutions 
in terms of public data would continue to be 
challenged by privacy issues and cyber attacks. 
The system protects the creditor but can at the 
same time make the borrower vulnerable to 
financial whales who look for opportunities to 
acquire assets at any defaults. A framework for 
M&As or recoveries that protect the borrowers 
would further be needed with a borrower 
redressal mechanism that protects and supports 
the borrowing process given the PM’s motto is 
Atmanirbhar Bharat. 
A business-friendly environment and 
ecosystem is reflected in the provisions of the 
Budget for Fintech along with other technology 
to provide for a business-friendly environment 
that is compliance-friendly with more than 
39,000 compliances have been reduced and over 
3,400 legal provisions have been decriminalised. 
Several initiatives have been taken in GIFT IFSC 
to make India a financial hub for international 
transactions and promote international business 
and trade. The bilateral trade talks; free trade 
agreements; alliance in QUAD; neutral and 
The Government has in the 
long drawn process of reforms 
strengthened the ability of the 
last mile advantage through a 
resilient financial system. It was 
much needed that post pandemic 
recoveries are supported by 
the government to ensure that 
the poorest of the poor receive 
the benefits of the continued 
economic growth pegged at 7%. 
51 MArCh 2023
Page 4


49 March 2023
he Finance Minister has presented a 
phenomenal Budget with a difference. 
It is in continuation of the reform 
process through budgets presented in 
the past, laying down the foundation and a clear 
path for India@100 Amrit Kaal. The Minister has 
rightly identified objectives, assigned priorities, 
recognised constraints, technological innovations 
in the world economy and the needs of Indians 
& Indian Industry, incorporating the mission and 
vision of the Prime Minister. The Budget is a 
well-planned document which presents a clear-
cut roadmap for India’s tomorrow.  
The budget has laid a foundation for catering 
to the needs and aspirations of Millennials 
and Generation Z in India@100. Given the 
GDP growth of 7% in 2022-23 with controlled 
inflation at 6.8% and Fiscal Deficit at 6.4%, India 
has moved to a higher pedestal amongst top five 
world economies in every sphere of its activity and 
amongst the top three world economies on PPP 
basis having GDP of over US$ 10 Trillion. This 
budget would enhance global competitiveness 
strengthening  
the Financial sector T
The Budget 2023-24 laid a blueprint for India@100. The inclusive 
Budget focussed on growth and employment generation besides boosting 
infrastructure and development through self-reliance, transparency 
and digitalisation. The budget proposals would empower youth, women, 
farmers, scheduled castes, scheduled tribes, senior citizens, BPL families, 
MSMEs, and people affected by the pandemic. It has used innovative 
methods of financing various projects using PPP mode, which will all add to 
the growth and help build the economy’s productive capacity and jobs.
and ensure a sound sustainable future for India 
and the Indian industry on account of inducing 
transparency, accountability and sustainability 
through digital influx in all spheres of public and 
private lives and livelihood. 
Budget 2023 is growth oriented; employment 
generating; infrastructure expanding budget with 
a focus on development through Atmanirbharta, 
transparency & digitalisation; repealing laws 
towards ease of doing business; bringing 
dynamism in tax structure with a portfolio 
approach.  The Budget, through reorienting 
tax slabs, reducing surcharges to individuals, 
corporates and associations provides more 
liquidity to the middle class while targeting 
to control evasion or avoidance of taxes. The 
re-mention of RBI issuing Digital Currency in 
2023-24 having test run initiated in November 
2022  will help India increase productive 
efficiency and global competitiveness of the 
economy while containing inflation in medium 
term, facilitating ease of doing business and ease 
of living in tune with the latest technological 
dr aman agarwal dr yamini agarwal Director & Professor of Finance, Indian Institute of Finance, Gr. Noida. Email: aa@iif.edu
Director & Professor of Economics & Finance, Bharati Vidyapeeth (Deemed-to-be-University), Institute of Management and 
Research, Delhi. Email: yamini.agarwal@bharatividyapeeth.edu
49 MArCh 2023 50 March 2023
developments taking the economy to a higher 
platform. 
The budget proposals would directly benefit 
India, its youth, women, farmers, scheduled 
castes, scheduled tribes, senior citizens, BPL 
families, MSMEs, “have nots”, and those 
suffering from the ill effects of the pandemic. 
The meaning of money has changed from cash 
to digital currency. The ease with which one can 
transfer money 24X7 with the click of a button 
from anywhere at low cost and affordable means 
has empowered the common man. Financial 
Inclusion through schemes like Pradhan Mantri 
Jan Dhan Yojana; Aayushman Bharat; Pradhan 
Mantri Jeeven Bima Yojana; Pradhan Mantri 
Suraksha Bima Yojana; Pradhan Mantri Mudra 
Yojana; Stand Up India; Crop Insurance; 
Emergency Credit Guarantee Scheme and 
others with Aadhaar as its backbone provides 
security and authenticity. It thus enables the 
poorest of the poor, women, farmers, youth, 
senior citizens and the MSMEs to seek social 
security and credit from the financial system 
appreciated for its robustness and resilience 
globally by institutions like the World Bank. 
The Government has, in the long 
drawn process of reforms strengthened the 
ability of the last mile advantage through 
a resilient financial system. It was much 
needed that post pandemic recoveries are 
supported by the government to ensure 
that the poorest of the poor receive the 
benefits of the continued economic 
growth pegged at 7%. The setting up of 
Post Office Banking as core banking in 1.5 
lakh Post Offices and 75 Digital Banking 
units (DBUs) in 75 districts by SCBs is 
empowering the rural consumers with 
financial liquidity and mobility via JAM 
Trinity. Encouraging a Digital Payments 
ecosystem that is economical and friendly 
will ensure the formalisation of the 
economy and industry. Digitalisation for 
India@100 will help generate wealth, 
bring ease of doing business, improve 
livelihood through enhanced employment, 
double farmer income through DBT at 
MSP and induce efficiency in currency markets. 
This process will help increase multi-fold the 
productive capacity of the economy and general 
employment at large scale at all levels.
The budget aims to provide the means to 
strengthen the social safety net through Mahila 
Samman Bachat Patra. It is an attempt to secure 
the small savings of women who find no means 
or instruments dedicated to their effort of small 
savings which help them and their family in 
difficult times. The attempt to reach the millions 
of women, especially the less privileged, is 
the most innovative and effective structure of 
defining financial systems as means and ways 
of reducing the gender gap in various financially 
available systems. Savings of the women would 
also potentially secure the financial system as 
these savings are often used only in dire needs. 
This would improve the saving rate in the 
financial system and also make women at the 
grassroots level incentivised to be part and parcel 
of the economic development and prosperity 
through interest earning.
Another key feature that touches the 
common man, poor and vulnerable groups and 
50 MArCh 2023 51 March 2023
senior citizens whose only resources for other 
incomes are their savings in Monthly Income 
Schemes (MIS) or senior citizens for which 
the saving limits have been enhanced keeping 
in view the progress we have made in our 
economic development and present needs of 
people. In order to give people the ability to seek 
other resources of income and take advantage 
of the growing corporate world, it is a welcome 
step to recognise that people’s participation can 
be increased in the capital markets through the 
education fostered under the umbrella of SEBI. 
The more people are educated about the capital 
markets, the more they can make it as another 
source of income for themselves by participating 
at affordable means. This would further ensure 
that the corporates can also raise money through 
deep capital markets as retail participation 
would improve. Also, education would ensure 
that speculation is converted into investments 
that garner support for economic development. 
The launching of Digital University, One-
Class-One-TV channel under PM e-Vidya 200 
TV channels will supplement equitable right to 
education in national and regional languages for 
classes 1-12, setting up of 750 virtual labs in 
science and mathematics along with 75 skilling 
e-labs for simulate learning environment. 
Development of high quality e-content in all 
spoken languages for delivery via internet, 
mobile, TV, radio will equip teachers with 
digital tools of teaching and facilitating better 
equitable learning outcomes throughout the 
country for all irrespective of income or status. 
NPAs continue to be a challenge, especially 
with its legacy baggage of the world financial 
crisis of 2007-08 and the post pandemic effect. 
The Insolvency and Bankruptcy Act (IBA) 
provided for the strengthening of creditors’ 
rights has enabled the banking system to 
exert their rights and protect the money of the 
depositors. Yet the constant challenge for most 
bankers is the inability to communicate any 
defaults or delimit any individual or company 
which has a default credit history. The veil of the 
corporates protects and hides many borrowers 
in terms of their capacity and ability to borrow. 
The budget provides for meeting the need for 
a National Financial Information Registry to 
serve as the central repository of financial and 
ancillary information. This would strengthen 
the financial system and its intermediaries by 
making borrowers more accountable for their 
borrowings. The ability to serve the institutions 
in terms of public data would continue to be 
challenged by privacy issues and cyber attacks. 
The system protects the creditor but can at the 
same time make the borrower vulnerable to 
financial whales who look for opportunities to 
acquire assets at any defaults. A framework for 
M&As or recoveries that protect the borrowers 
would further be needed with a borrower 
redressal mechanism that protects and supports 
the borrowing process given the PM’s motto is 
Atmanirbhar Bharat. 
A business-friendly environment and 
ecosystem is reflected in the provisions of the 
Budget for Fintech along with other technology 
to provide for a business-friendly environment 
that is compliance-friendly with more than 
39,000 compliances have been reduced and over 
3,400 legal provisions have been decriminalised. 
Several initiatives have been taken in GIFT IFSC 
to make India a financial hub for international 
transactions and promote international business 
and trade. The bilateral trade talks; free trade 
agreements; alliance in QUAD; neutral and 
The Government has in the 
long drawn process of reforms 
strengthened the ability of the 
last mile advantage through a 
resilient financial system. It was 
much needed that post pandemic 
recoveries are supported by 
the government to ensure that 
the poorest of the poor receive 
the benefits of the continued 
economic growth pegged at 7%. 
51 MArCh 2023 52 March 2023
peace initiatives in the Russia-Ukraine war; 
G20 Presidency and Internationalisation/
Digitalisation of the Rupee have all put India in a 
position to become a leader that recognises UN-
ESGs, continuous growth needs for its people 
and sustainable development contributions to the 
world economy. 
The Budget proposals for the GIFT IFSC are 
an essential step in the direction of strengthening 
trade and open economy frameworks. Data 
Embassies would further strengthen the 
process of Transparency and Accountability. 
The direction of the government from being 
a regulator with Draconian laws has shifted to 
being a facilitator of businesses to ensure that 
they are job friendly, growth orientated and 
enhancing the ability of the country’s potential 
of demographic dividends towards GDP growth. 
The GEM Market framework and Central 
Depository Processing Centre are also quick 
operational response mechanisms developed by 
the government to ensure ease of doing business 
for companies. 
The support for the MSME through 
Atmanirbhar Bharat Abhiyan 1, 2 and 3 
continues to be further facilitated by the 
government through the Credit guarantee for 
MSME with revamped scheme from 1
st
 April 
2023. It receives an equity infusion of Rs 9,000 
crores in the corpus and an additional collateral-
free guaranteed credit of Rs 2 lakh crore. 
Further, the cost of the credit will be reduced by 
about one per cent. The MSMEs’ timely receipt 
of payments concern has been addressed by 
allowing a deduction for expenditure incurred 
on payments made to them only when payment 
is actually made. This will support the millions 
of people employed in the MSME sector which 
is the largest employer after the government. 
This is in addition to the 10 lakh jobs in the 
government departments and subsidiaries as 
announced by PM Narendra Modi in July 2022 
towards various vacancies on account of lean 
government and effective governance to be 
filled before December 2023. 
The Agriculture Credit; Green Credit; Unity 
Mall and the Productive Linked Investment 
Scheme in 14 Sectors, Solar and other schemes 
in Sunrise Opportunities; Energy Transition and 
Climate Action; Green Clearances; e-Passports; 
Urban Planning & Development support to 
States; Clean & Sustainable Mobility;  Battery 
Swapping Policy; Land Records Management; 
IBC, accelerated corporate exit, modernising 
Government procurement; payment of  
75 per cent of government running bills 
mandatorily within 10 days; setting up of 
ways to improve AVGC sectors with a view 
to generate employment and build domestic 
capacity; rolling out of 5G Mobile services  
for proliferation  in rural areas  and access to 
e-services communication facilities will foster 
job creation and eco-friendly growth in all 
sections of society.
The Budget makes a progressive leap into 
the financial sector through its reforms ensuring 
social security for the poor, women, farmers, 
senior citizens and MSMEs given the capital 
investment outlay being increased steeply for 3
rd
 
year in a row by 33% to Rs 10 lakh Crore (3.3% 
of GDP) with effective capital expenditure 
being budgeted at Rs 13.7 lakh crore (4.5% of 
GDP). The Budget strives to enrich states and 
make them an integral part of the India’s Growth 
Story through the 50 year interest-free loan 
52 MArCh 2023
Page 5


49 March 2023
he Finance Minister has presented a 
phenomenal Budget with a difference. 
It is in continuation of the reform 
process through budgets presented in 
the past, laying down the foundation and a clear 
path for India@100 Amrit Kaal. The Minister has 
rightly identified objectives, assigned priorities, 
recognised constraints, technological innovations 
in the world economy and the needs of Indians 
& Indian Industry, incorporating the mission and 
vision of the Prime Minister. The Budget is a 
well-planned document which presents a clear-
cut roadmap for India’s tomorrow.  
The budget has laid a foundation for catering 
to the needs and aspirations of Millennials 
and Generation Z in India@100. Given the 
GDP growth of 7% in 2022-23 with controlled 
inflation at 6.8% and Fiscal Deficit at 6.4%, India 
has moved to a higher pedestal amongst top five 
world economies in every sphere of its activity and 
amongst the top three world economies on PPP 
basis having GDP of over US$ 10 Trillion. This 
budget would enhance global competitiveness 
strengthening  
the Financial sector T
The Budget 2023-24 laid a blueprint for India@100. The inclusive 
Budget focussed on growth and employment generation besides boosting 
infrastructure and development through self-reliance, transparency 
and digitalisation. The budget proposals would empower youth, women, 
farmers, scheduled castes, scheduled tribes, senior citizens, BPL families, 
MSMEs, and people affected by the pandemic. It has used innovative 
methods of financing various projects using PPP mode, which will all add to 
the growth and help build the economy’s productive capacity and jobs.
and ensure a sound sustainable future for India 
and the Indian industry on account of inducing 
transparency, accountability and sustainability 
through digital influx in all spheres of public and 
private lives and livelihood. 
Budget 2023 is growth oriented; employment 
generating; infrastructure expanding budget with 
a focus on development through Atmanirbharta, 
transparency & digitalisation; repealing laws 
towards ease of doing business; bringing 
dynamism in tax structure with a portfolio 
approach.  The Budget, through reorienting 
tax slabs, reducing surcharges to individuals, 
corporates and associations provides more 
liquidity to the middle class while targeting 
to control evasion or avoidance of taxes. The 
re-mention of RBI issuing Digital Currency in 
2023-24 having test run initiated in November 
2022  will help India increase productive 
efficiency and global competitiveness of the 
economy while containing inflation in medium 
term, facilitating ease of doing business and ease 
of living in tune with the latest technological 
dr aman agarwal dr yamini agarwal Director & Professor of Finance, Indian Institute of Finance, Gr. Noida. Email: aa@iif.edu
Director & Professor of Economics & Finance, Bharati Vidyapeeth (Deemed-to-be-University), Institute of Management and 
Research, Delhi. Email: yamini.agarwal@bharatividyapeeth.edu
49 MArCh 2023 50 March 2023
developments taking the economy to a higher 
platform. 
The budget proposals would directly benefit 
India, its youth, women, farmers, scheduled 
castes, scheduled tribes, senior citizens, BPL 
families, MSMEs, “have nots”, and those 
suffering from the ill effects of the pandemic. 
The meaning of money has changed from cash 
to digital currency. The ease with which one can 
transfer money 24X7 with the click of a button 
from anywhere at low cost and affordable means 
has empowered the common man. Financial 
Inclusion through schemes like Pradhan Mantri 
Jan Dhan Yojana; Aayushman Bharat; Pradhan 
Mantri Jeeven Bima Yojana; Pradhan Mantri 
Suraksha Bima Yojana; Pradhan Mantri Mudra 
Yojana; Stand Up India; Crop Insurance; 
Emergency Credit Guarantee Scheme and 
others with Aadhaar as its backbone provides 
security and authenticity. It thus enables the 
poorest of the poor, women, farmers, youth, 
senior citizens and the MSMEs to seek social 
security and credit from the financial system 
appreciated for its robustness and resilience 
globally by institutions like the World Bank. 
The Government has, in the long 
drawn process of reforms strengthened the 
ability of the last mile advantage through 
a resilient financial system. It was much 
needed that post pandemic recoveries are 
supported by the government to ensure 
that the poorest of the poor receive the 
benefits of the continued economic 
growth pegged at 7%. The setting up of 
Post Office Banking as core banking in 1.5 
lakh Post Offices and 75 Digital Banking 
units (DBUs) in 75 districts by SCBs is 
empowering the rural consumers with 
financial liquidity and mobility via JAM 
Trinity. Encouraging a Digital Payments 
ecosystem that is economical and friendly 
will ensure the formalisation of the 
economy and industry. Digitalisation for 
India@100 will help generate wealth, 
bring ease of doing business, improve 
livelihood through enhanced employment, 
double farmer income through DBT at 
MSP and induce efficiency in currency markets. 
This process will help increase multi-fold the 
productive capacity of the economy and general 
employment at large scale at all levels.
The budget aims to provide the means to 
strengthen the social safety net through Mahila 
Samman Bachat Patra. It is an attempt to secure 
the small savings of women who find no means 
or instruments dedicated to their effort of small 
savings which help them and their family in 
difficult times. The attempt to reach the millions 
of women, especially the less privileged, is 
the most innovative and effective structure of 
defining financial systems as means and ways 
of reducing the gender gap in various financially 
available systems. Savings of the women would 
also potentially secure the financial system as 
these savings are often used only in dire needs. 
This would improve the saving rate in the 
financial system and also make women at the 
grassroots level incentivised to be part and parcel 
of the economic development and prosperity 
through interest earning.
Another key feature that touches the 
common man, poor and vulnerable groups and 
50 MArCh 2023 51 March 2023
senior citizens whose only resources for other 
incomes are their savings in Monthly Income 
Schemes (MIS) or senior citizens for which 
the saving limits have been enhanced keeping 
in view the progress we have made in our 
economic development and present needs of 
people. In order to give people the ability to seek 
other resources of income and take advantage 
of the growing corporate world, it is a welcome 
step to recognise that people’s participation can 
be increased in the capital markets through the 
education fostered under the umbrella of SEBI. 
The more people are educated about the capital 
markets, the more they can make it as another 
source of income for themselves by participating 
at affordable means. This would further ensure 
that the corporates can also raise money through 
deep capital markets as retail participation 
would improve. Also, education would ensure 
that speculation is converted into investments 
that garner support for economic development. 
The launching of Digital University, One-
Class-One-TV channel under PM e-Vidya 200 
TV channels will supplement equitable right to 
education in national and regional languages for 
classes 1-12, setting up of 750 virtual labs in 
science and mathematics along with 75 skilling 
e-labs for simulate learning environment. 
Development of high quality e-content in all 
spoken languages for delivery via internet, 
mobile, TV, radio will equip teachers with 
digital tools of teaching and facilitating better 
equitable learning outcomes throughout the 
country for all irrespective of income or status. 
NPAs continue to be a challenge, especially 
with its legacy baggage of the world financial 
crisis of 2007-08 and the post pandemic effect. 
The Insolvency and Bankruptcy Act (IBA) 
provided for the strengthening of creditors’ 
rights has enabled the banking system to 
exert their rights and protect the money of the 
depositors. Yet the constant challenge for most 
bankers is the inability to communicate any 
defaults or delimit any individual or company 
which has a default credit history. The veil of the 
corporates protects and hides many borrowers 
in terms of their capacity and ability to borrow. 
The budget provides for meeting the need for 
a National Financial Information Registry to 
serve as the central repository of financial and 
ancillary information. This would strengthen 
the financial system and its intermediaries by 
making borrowers more accountable for their 
borrowings. The ability to serve the institutions 
in terms of public data would continue to be 
challenged by privacy issues and cyber attacks. 
The system protects the creditor but can at the 
same time make the borrower vulnerable to 
financial whales who look for opportunities to 
acquire assets at any defaults. A framework for 
M&As or recoveries that protect the borrowers 
would further be needed with a borrower 
redressal mechanism that protects and supports 
the borrowing process given the PM’s motto is 
Atmanirbhar Bharat. 
A business-friendly environment and 
ecosystem is reflected in the provisions of the 
Budget for Fintech along with other technology 
to provide for a business-friendly environment 
that is compliance-friendly with more than 
39,000 compliances have been reduced and over 
3,400 legal provisions have been decriminalised. 
Several initiatives have been taken in GIFT IFSC 
to make India a financial hub for international 
transactions and promote international business 
and trade. The bilateral trade talks; free trade 
agreements; alliance in QUAD; neutral and 
The Government has in the 
long drawn process of reforms 
strengthened the ability of the 
last mile advantage through a 
resilient financial system. It was 
much needed that post pandemic 
recoveries are supported by 
the government to ensure that 
the poorest of the poor receive 
the benefits of the continued 
economic growth pegged at 7%. 
51 MArCh 2023 52 March 2023
peace initiatives in the Russia-Ukraine war; 
G20 Presidency and Internationalisation/
Digitalisation of the Rupee have all put India in a 
position to become a leader that recognises UN-
ESGs, continuous growth needs for its people 
and sustainable development contributions to the 
world economy. 
The Budget proposals for the GIFT IFSC are 
an essential step in the direction of strengthening 
trade and open economy frameworks. Data 
Embassies would further strengthen the 
process of Transparency and Accountability. 
The direction of the government from being 
a regulator with Draconian laws has shifted to 
being a facilitator of businesses to ensure that 
they are job friendly, growth orientated and 
enhancing the ability of the country’s potential 
of demographic dividends towards GDP growth. 
The GEM Market framework and Central 
Depository Processing Centre are also quick 
operational response mechanisms developed by 
the government to ensure ease of doing business 
for companies. 
The support for the MSME through 
Atmanirbhar Bharat Abhiyan 1, 2 and 3 
continues to be further facilitated by the 
government through the Credit guarantee for 
MSME with revamped scheme from 1
st
 April 
2023. It receives an equity infusion of Rs 9,000 
crores in the corpus and an additional collateral-
free guaranteed credit of Rs 2 lakh crore. 
Further, the cost of the credit will be reduced by 
about one per cent. The MSMEs’ timely receipt 
of payments concern has been addressed by 
allowing a deduction for expenditure incurred 
on payments made to them only when payment 
is actually made. This will support the millions 
of people employed in the MSME sector which 
is the largest employer after the government. 
This is in addition to the 10 lakh jobs in the 
government departments and subsidiaries as 
announced by PM Narendra Modi in July 2022 
towards various vacancies on account of lean 
government and effective governance to be 
filled before December 2023. 
The Agriculture Credit; Green Credit; Unity 
Mall and the Productive Linked Investment 
Scheme in 14 Sectors, Solar and other schemes 
in Sunrise Opportunities; Energy Transition and 
Climate Action; Green Clearances; e-Passports; 
Urban Planning & Development support to 
States; Clean & Sustainable Mobility;  Battery 
Swapping Policy; Land Records Management; 
IBC, accelerated corporate exit, modernising 
Government procurement; payment of  
75 per cent of government running bills 
mandatorily within 10 days; setting up of 
ways to improve AVGC sectors with a view 
to generate employment and build domestic 
capacity; rolling out of 5G Mobile services  
for proliferation  in rural areas  and access to 
e-services communication facilities will foster 
job creation and eco-friendly growth in all 
sections of society.
The Budget makes a progressive leap into 
the financial sector through its reforms ensuring 
social security for the poor, women, farmers, 
senior citizens and MSMEs given the capital 
investment outlay being increased steeply for 3
rd
 
year in a row by 33% to Rs 10 lakh Crore (3.3% 
of GDP) with effective capital expenditure 
being budgeted at Rs 13.7 lakh crore (4.5% of 
GDP). The Budget strives to enrich states and 
make them an integral part of the India’s Growth 
Story through the 50 year interest-free loan 
52 MArCh 2023 53 March 2023
to the state government to spur infrastructure, 
healthcare and socio-economic development. 
Financial intermediation is a strong engine for 
growth with capital expenditure increasing by 
Rs 7.3 Lakh crores shall give impetus to the 
economy to sustain itself as the fastest growing 
economy inducing jobs and social security for 
the poor and vulnerable. The borrowing of the 
government shall be from small savings which 
will give an avenue for the small saver, usually 
the poor, a safe investment alternative.
Fiscal consolidation and tap on fiscal deficit 
are often strongly preached ignoring the role of 
high leverage facilitates faster economic growth 
provided it is used for investment in productive 
capital assets. A country gains tremendously 
when the Return on Investment, ROI (both social 
benefits and private benefits) from a project is 
higher than the cost of such funds invested in 
various projects (capital assets). Restricting 
fiscal deficit to a low level, say at about 4%, 
is against the interest of the nation as it will 
throttle growth and equitable development. 
For a developing economy own funds are 
never adequate for development and building 
up productive assets of the economy. Fixing 
low deficit targets also indicates restricting 
the government in its spending capabilities to 
induce growth, investment for India@100 and 
jobs for youth. The Foreign Exchange Reserves 
for India is US$ 563 Billion (excluding more 
than US$ 50 billion as loans to neighbouring 
countries) with over US$ 7 billion FDI being 
received monthly is clearly an indication of 
India being one of the Most Favoured Nations 
for Investment. Globally despite the effect of 
Covid-19 & US increased interest rates helps 
India have leverage on Fiscal Spending for 
long term growth projects. The Budget 2023-
24 has used innovative methods of financing 
various projects using PPP mode which will all 
add to the growth and help build the productive 
capacity of the economy and jobs. Thus, the 
budget is growth- oriented, with a target growth 
of 8-8.5%. It is the budget of the common man 
and middle class with a motto of “Sabka Saath 
Sabka Vikas”.                                                   ?