With the upcoming 2024 elections looming on the horizon, India’s government is likely to continue its policy of fiscal consolidation in Budget 2023. According to a recent report from Deloitte, there are several goals and objectives that the government will likely pursue in order to maintain this commitment. These include reducing public debt levels, increasing revenue efficiency, and creating an environment conducive to economic growth. This article post will discuss these objectives in detail and assess how successful their implementation has been so far. It will also examine what impact these measures could have on important sectors such as health care and infrastructure development over the coming years.
In the final full Budget before the 2024 elections, the Narendra Modi government is expected to continue on the path of fiscal consolidation. According to a poll of economists conducted by the news agency Reuters. According to the poll, more than 80% of economists believe fiscal consolidation will be the dominant theme in the budget to be announced on February 1.
From December 13 to 21, the news agency polled 37 economists. According to the survey, the government will limit borrowing to 6% of GDP in 2023-24. This is significantly higher than the historical average of 4-5 percent.
So far, the Modi administration has largely remained committed to fiscal consolidation. However, the pandemic had a significant impact on the government’s finances, pushing the fiscal deficit for 2020-21 to a record 9.3 percent of GDP, significantly higher than the budgeted 3.5 percent, according to the report. According to the report, a fiscal deficit of 6.4% is expected in 2022-23, which is lower than the 6.9% fiscal deficit in 2021-22.
The Budget 2023 is expected to be an important one as it will likely continue the government’s fiscal consolidation efforts even as the nation faces its next election. The budget announcement may well provide some much-needed relief for taxpayers and businesses while also serving as a testament to the government’s commitment to sound economic management. With that in mind, it is now up to taxpayers and businesses alike to make sure they are prepared for whatever changes may come with this year’s budget – whether that means maximizing their deductions or planning ahead for any potential tax increases. By doing so, we can ensure our financial future remains secure no matter what comes our way.