Budget 2023 architects believe in adopting conservative numbers

The Budget architects Ajay Seth, Secretary of the Department of Economic Affairs (DEA), and Vivek Joshi, Secretary of the Department of Financial Services (DFS) believe in having or adopting conservative numbers so that there are no adverse surprises going ahead.

Speaking to CNBC-TV18 after the Union Budget speech, Ajay Seth, Secretary of the Department of Economic Affairs (DEA) said that the department believes in adopting conservative numbers.

“In 2022-23, we believed in having or adopting conservative numbers so there are no adverse surprises moving forward. So, a 10.5 percent nominal growth rate, we feel is a reasonable assumption, and that has served. In the current year, we have presumed 11 percent,” he said.

Seth stated that, while inflation levels in advanced economies are often much higher than what is considered comfortable, the bottlenecks in the Indian economy in terms of capacity have largely been resolved. He went on to say that he expects inflation to be much more moderate this year.

Seth also discussed the wide range of sectors that are covered by the government's Production Linked Incentive (PLI) schemes, highlighting that a significant amount has been given to the solar panel sector. He noted that, if pure insurance policies are used as investment opportunities, a more nuanced taxation policy must be applied.

Turning to the topic of cryptocurrencies, Seth mentioned that there is a growing belief among several countries that crypto cannot be regulated by just one jurisdiction. He added that the discussion on cryptocurrencies is currently ongoing at the G20 platform and that a broad consensus on how to regulate them should be in place by the end of the year.

Meanwhile, talking about IDBI Bank privatisation, Joshi said, “We are doing IDBI Bank privatisation, but for the previous banks at an appropriate time we will announce.”

Finally, Seth noted that reducing the compliance burden has made doing business much easier. He emphasized the importance of continuing to streamline processes and regulations to encourage growth and development in the Indian economy.

For more details, watch the accompanying video