The Government is planning to announce populist measures in its last full budget before the general elections commence in 2024, but the experts indicate that announcements would be largely limited to fiscal consolidation and spending towards long-term growth.
By Crox Media Desk: There are high expectations from the central government as Union Budget 2023 will be announced by Finance Minister Nirmala Sitharaman on February 1, 2023.
The government will be tempted to announce the populist measures in its last budget before the general elections begin in 2024, but the experts indicate that announcements would be largely limited to fiscal consolidation and spending towards long-term growth.
This is a result of several economic factors such as, including the possibility of a worsening global recession, which has cast a shadow on the possibility of an expansionist budget.
Here are five expectations from Budget 2023.
Income Tax Relief
Like every year, every citizen and even experts have requested the government to provide Income Tax Income Relief in the upcoming budget.
Just a few days ago, Finance Minister Nirmala Sitharaman said the BJP NDA government has not put any tax burden on the middle class, but at the same time, no measures have been announced in recent years to help citizens cope with higher and struggling income growth.
Local Manufacturing Push
Local Manufacturing push is likely to boost in the upcoming budget, with reports indicating that government will include more sectors under the scope of its successful PLI scheme. Some sectors like electronics and IT hardware manufacturing which were already under the ambit of the scheme may get a little higher allocation.
Rural and Welfare Spending
Data from previous Pre-election budgets show that governments usually shift focus to rural and welfare spending. India has witnessed a similar pattern in its last two pre-election budgets.
Big Spending on Infrastructure Development
Like every pre-election budget, infrastructure could also feature strongly in the government’s financial plan for the next financial year. Since Infrastructure is a big driver of growth and creates jobs, the government may not shy away from announcing a higher allocation this year to tackle growth challenges in FY24.
Green Energy Boost
Climate change has gained prominence across various industries and the government may not hesitate to boost spending towards promoting sustainable growth and development, as the country remains committed to achieve net-zero emissions by 2070.
