The Union Budget for current fiscal highlights government priorities, balancing growth objectives with fiscal consolidation and policy reforms.
The Union Budget for the current financial year outlined the government’s priorities: a push towards capital expenditure and fiscal consolidation. Many industry stalwarts believe that this will provide the necessary impetus for sustainable and inclusive growth and will also drive the investment part of the economy. Besides, the newly-introduced policy reforms are likely to support consumption and savings in the economy, especially for the lower rungs of society.
Several major steps have been taken that will push India’s growth story despite global gloom. However, an already-distressed rural sector was left high and dry as the government resorted to supply-side interventions in a demand-constrained economy.
But Sakshi Gupta, Principal Economist, HDFC Bank, believes that this is not the case and we need to look at it in a more holistic manner. “At a time when the government is trying to balance the growth objectives with the fiscal consolidation, which is crucial given the rising debt in the country, it does create a sort of trade-off in terms of spending. This should be seen in the light of the fact that we are moving towards a less expansionary fiscal policy,” says Sakshi.
The Budget has come at a critical time, considering global events and the internal eco-political landscape. It elicited a mixed response from finance leaders.
CFO India finds out how finance leaders across various sectors reacted to Union Budget 2023.
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