Budget 2023: Driving Growth, Maintaining Fiscal Stability & Dolling Out Benefits

The Budget is pragmatic on all counts, especially in the sense of pushing growth and maintaining fiscal responsibility. The fiscal deficit being pegged lower at 5.9% of GDP in 2023-24 is a good effort at maintaining fiscal responsibility.

Says Madhavi Arora, Lead Economist, Emkay Global Financial Services, "The budget has ensured, the fiscal impulse is maximized to improve potential growth, while signalling adherence to medium-term fiscal sustainability. This requires continued financial sector reforms, better resource allocation. Expenditure focus has been on rural, welfare, infrastructure, PLIs, and energy transition. Capex spend has picked up significantly to 3.3% of GDP and is almost double of Pre-Pandemic prints. This especially implies larger fiscal multiplier on employment and growth and will support crowding in of still-lacking private capex. "

Even while pushing economic growth, the budget also kept the common man in mind. Anmol Das, Head of Research, Teji Mandi, stated that as expressed in their Budget Expectations, the FM scored in both the Economic expansion line as well as relieving common man with higher Personal Disposable Income in Hand. "This budget enables domestic consumption growth while boosting business & investment sentiment for corporates," he stated.

In the last few years, we have seen the government laying an emphasis on infrastructure and this time too it was no different. This becomes very neccessary as private capex is a bit late in picking-up.

"In the Union Budget, GOI has once reiterated its commitment to infrastructure development, urban growth, and the housing for all program. The effective capital expenditure will be INR 13.7 lakh Crores, forming 4.5% of the GDP. Likewise, the outlay for PM Aawas Yojna has been increased by 66% to INR 79,000 Crores. The thrust towards infrastructure development in the form of roadways, power, healthcare, railway corridors, water supplies, affordable housing programs, etc. will drive economic growth. This in turn will push demand for housing, urban communities, construction activities, office spaces, etc," said Nakul Mathur, MD, Avanta India

According to Anuj Puri, Chairman - ANAROCK Group, the Budget lays much emphasis on building the infrastructure of the country, with emphasis on last-mile connectivity. "Improved urban infrastructure will provide further impetus to Tier 2 & 3 cities. The unwavering focus on infrastructure will indirectly drive real estate growth over the next one year. The tourism sector also has something to cheer for as the budget aims to boost domestic and international tourism," he stated.

All in all, a decent budget focussed on infra spend, helping tax payers (not all), and something for every segment from youth to women to farmers.