A balance between capital outlays and fiscal prudence

There are five issues that need to be analyzed in this Budget — three from a growth and fiscal stability perspective and two from a welfare perspective.

2 Feb 2023

Context: 

There are five issues that need to be analyzed in this Budget — three from a growth and fiscal stability perspective and two from a welfare perspective.

Growth Perspective

  • Continuity in the Path of Fiscal Consolidation:
      • The fiscal deficit target for 2023-24 (FY24) is to come down from 6.4% in FY23 to 5.9% in FY24.
      • The government believes that the economy is on a strong footing and no longer requires affirmative action.
  • Infrastructure and Capital Expenditure (Capex):
      • The government prioritizes high-multiplier capex as the best way to sustain growth and create jobs.
      • The increase in capex to ₹10 lakh crore is substantial and is supplemented by the ₹79,000 crores on affordable housing.
  • Revenue Front:
      • Direct tax sops are provided for individuals and MSMEs but may not lead to higher consumption.
      • Disinvestment and non-tax revenue numbers are interesting with ₹51,000 crores for disinvestment and lower transfers from the RBI expected.

Welfare Perspective

  • Social Sector
      • The focus is on providing last-mile connectivity and empowering women through self-help groups.
      • No significant increase in social sector expenditure, but some new initiatives towards skilling in education and health.
  • Transitions:
      • The Budget nudges transitions from the old tax regime to the new, from conventional to digital agriculture, from fossil fuels to hydrogen, from natural to laboratory diamonds.

The Test of the Budget

  • Improved Balance Sheets of Companies and Banks:
      • The private investment cycle is expected to generate more jobs, but demand remains a constraint.
  • Transition Out of Multidimensional Poverty:
      • 16.4% of the population is multidimensionally poor and an additional 18.7% is vulnerable to poverty.
      • The ultimate goal is to transition these groups out of poverty, which is the definition of “sabka vikaas”.

 

                                                                                                                              News Source: The Hindu

Archive Calendar

Mon Tue Wed Thu Fri Sat Sun
 123
45678910
11121314151617
18192021222324
25262728293031

Need help preparing for UPSC or State PSCs?

Connect with our experts to get free counselling & start preparing

Know about Physics Wallah

Physics Wallah is an Indian online education platform, that provides accessible & comprehensive learning experiences to students of classes 6 to 12 and those preparing for JEE and NEET exams. We also provide extensive NCERT solutions, sample papers, NEET, JEE Mains, BITSAT previous year papers, which makes us a one-stop solution for all resources. Physics Wallah also caters to over 3.5 million registered students and over 78 lakh+ Youtube subscribers with 4.8 rating on its app.

We Stand Out because

We successfully provide students with intensive courses by India's qualified & experienced faculties. PW strives to make the learning experience comprehensive and accessible for students of all sections of society. We believe in empowering every single student who couldn't dream of a good career in engineering and medical field earlier.

Our Key Focus Areas

Physics Wallah’s main focus is to create accessible learning experiences for students all over India. With courses like Lakshya, Udaan, Arjuna & many others, we have been able to provide a ready solution for lakhs of aspirants. From providing Chemistry, Maths, Physics formulae to giving e-books of eminent authors, PW aims to provide reliable solutions for student prep.

What Makes Us Different

Physics Wallah strives to develop a comprehensive pedagogical structure for students, where they get a state-of-the-art learning experience with study material and resources. Apart from catering students preparing for JEE Mains and NEET, PW also provides study material for each state board like Uttar Pradesh, Bihar, and others.

Aiming for UPSC?

Download Our App

# #
Quick Revise Now !
AVAILABLE FOR DOWNLOAD SOON
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध
Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

<div class="new-fform">






    </div>

    Subscribe our Newsletter
    Sign up now for our exclusive newsletter and be the first to know about our latest Initiatives, Quality Content, and much more.
    *Promise! We won't spam you.
    Yes! I want to Subscribe.