BUDGET EXPECTATIONS: ECONOMY

16 Jan 2023 , 11:32 AM

In the backdrop of a global growth slowdown and geopolitical uncertainty, ICRA foresees the FY24 Union Budget to support domestic economic growth, with a continued impetus towards infrastructure and capacity development. We expect a further boost in growth-supportive capital expenditure in the Budget and continued support to the rural economy; the announcement of a big bang, feel-good social sector scheme could be funded by the cushion provided by lower subsidies. The Budget is likely to entail a further modest fiscal consolidation, however, providing a clear fiscal glide path for the medium term holds key to ensure GoI’s commitment in sticking to the fiscal consolidation roadmap to achieve its deficit targets.