31 OCT,2022 | MEDC
The forthcoming Budget needs to focus primarily on fiscal deficit reduction. This Budget is being presented at a politically critical juncture, wherein the pressures to turn it into a pre-election exercise would be high. But they need to be overcome in the long-term interests of the nation. Due to global uncertainties, the economic headwinds that India now faces are so strong that it is necessary for the coming Budget to keep an eye on government finances, and ensure that they are firmly anchored on the path of fiscal consolidation. At the state level, achieving the 3% fiscal deficit target for many states looks improbable, but it is not impossible. The Union Budget for 2023-24 should be mindful of public expenditure and reprioritize it to achieve a faster reduction in the fiscal deficit, before electoral compulsions further complicate the picture.
*Picture Credit: Google