New Delhi: This year, the government has increased the defence budget to Rs 5.94 lakh crore from last year's allocation of Rs 5.25 lakh crore in the Union Budget presented in Parliament by Finance Minister Nirmala Sitharaman. This is an increase of about 13 per cent.
Let's see the defence industry's tycoons reaction over the Budget 2023:--
Baba Kalyani, Chairman and Managing Director, Bharat Forge Ltd.
Government policy formulation is a consultative process and the successive budgets including todays is a strong reflection of this process, aimed at promoting a virtuous cycle of growth and employment. Significant and sustained push on Infrastructure spend, Railways, Green Technologies and Defence is a welcome measure.
Overall direction to take India on the trajectory of a technology-driven and knowledge-based economy coupled with productive capital investments will have long-standing benefits in driving inclusive financial growth and enhancing per-capita income levels.
Gaurav Mehndiratta, Partner and Head, Aerospace and Defence, KPMG India
Defence budget increased by 13% to INR 5.94 lakh crore. Capex for defence gets a nominal increase of 7% vs 33% increase in the nation’s overall capital expenditure commitment. We believe -capex allocation misses a commensurate reflection of the govt’s impetus on defence manufacturing.
Ravi Kumar, Founder and CEO, udChalo
The 2023 budget has introduced several benefits that will be beneficial for the defence community, including an increase in the tax slab from 5 lac to 7 lac and a retention of the standard deduction of Rs 50,000 for salaried individuals.
This will result in increased savings for junior commissioned officers and below ranks troops who fall within the new tax slab and can take full tax exemption.
Additionally, the tax exemption for contributions to the Agniveer Corpus Fund by those enrolled under the Agnipath Scheme, 2022, is a positive step for the defence community
