Representational image. News18
Fiscal prudence, growth, and welfare could have been on top of Union Finance Minister Nirmala Sitharaman’s mind when she was at the drawing board for the last full Budget of the second Narendra Modi government, presented on February 1, 2023.
However, fiscal provisioning and actioning are two factors that are critical, apart from the announcements. Here, the government seems to be relying heavily on technology and ‘knowledge-driven’ governance to achieve its ends. This will end up helping the new and emerging Web3 ecosystem which sees the convergence of blockchain and its best use-case, crypto.
Three-pronged strategy
The FM has announced a three-pronged approach to make India a tech-driven, digital economy. For this, the Minister said, the government would facilitate the creation of opportunities, provide a strong impetus to job growth, and take steps to build a strong macroeconomic environment. All these would directly impact the tech sector, especially the crypto arena. Such clear-cut plans will usher in more venture capital and drive research and growth. It is to be noted that various research reports in the past year project the Web3 ecosystem can add Rs 1 trillion to the Indian economy by 2032.
KYC streamlining to enable business
An important aspect of this Budget is that the finance minister has announced a National Data Governance Policy wherein the KYC process will be simplified. The government intends to bring in a risk-based system rather than a one-size-fits-all approach. Both these would give more operational clarity to the crypto sector, more than others.
Payments and crypto
The government’s initiatives in payments would definitely, at least in the long term, usher in the usage and adoption of crypto. This time, the Centre is earmarking Rs 1,500 crore for the promotion of digital payments. This is especially so when the Reserve Bank of India (RBI) is proactively working on the retail leg of the Central bank Digital Currency (CBDC).
One major positive aspect is that the government, as stated earlier, is taking a studied approach to crypto. It is understandable that the government is taking time as the financial systems envisaged in Web3 would alter the way transactions are done and the ramifications would need technological and skill upgrades on the part of the government, banks, and all other stakeholders.
Blockchain and DigiLocker entity
There could be an immense opportunity for blockchain companies in the DigiLocker entity announced in the Budget. The entity will ensure MSMEs and large businesses store and share data securely and in a formalised environment. The DigiLocker’s integration with blockchain will be a force multiplier that can help create a fool-proof data management system.
The National Data Governance Policy also chimes with one of the long-time asks of the crypto sector. The policy could state the exact methods on how non-bank entities like crypto exchanges could completely KYCs in adherence to the laws of the land.
There are a host of other announcements like the extension of incorporation benefits to startups (10 years from the present 7), Rs 3000 crore for the Semiconductor Mission, and the inclusion of higher learning institutes in innovation. The Budget seems to have been worked out on the heartening understanding that rapid, all-encompassing technology initiative is the bedrock of a strong economy.
The writer is CEO, Giottus Crypto Platform-Indian Crypto Exchange. He tweets @VikramSubburaj @giottus Views are personal.
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Updated Date: February 02, 2023 17:30:05 IST
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Even though it is difficult to foresee how the funds would be distributed, the government will likely try to invest in clean energy, waste management, air and water pollution control, conservation of natural resources and biodiversity, as well as supporting the vulnerable segment of society
Detailing of some of the programmes outlined in the budget, defining and delivering on the capex outlay in specific projects in a time-bound manner is required to really start realising the ‘Amrit’ the country is looking forward to
By showing planned expenditure, the Budget shows the priorities of the government and outlines policies
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