Union Budget 2023-2024 Reaction: Radhika Rao, Senior Economist at DBS Group Research

02 Feb, 2023 |
9:42 AM

The central government’s FY24 Budget was growth supportive whilst sticking with a modest glide path for consolidation.

India’s FY24 Budget was growth supportive whilst sticking with a modest consolidation path
Fiscal deficit target has been set at 5.9% of GDP vs -6.4% in FY23, along our expectations
Our preferred gauge of primary deficit (excluding one-off revenues) points to a sharper correction
Personal income tax structure and rates were tweaked
Allocations towards capex saw a significant increase, tapping into subsidy savings
Implications for markets: Size of market borrowings were in line with expectations, triggering a kneejerk boost to bonds

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