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Budget Capex 2023: The budget made a big bet on capital spending while continuing the path of fiscal consolidation : NITI Aayog VC – Mintpaisa

The best part of the budget presented by the Minister of Finance is that it contains no “surprises”, but makes a spectacular bet on investment spending, while continuing on the path of fiscal consolidation, NITI Aayog Vice President Suman Bery said on Thursday. Describing the budget for 2023-2024 as “responsible”, Bery further said that he has maintained a focus on social sector programs, particularly those related to women and tribal welfare.

“The Prime Minister’s emphasis on fiscal prudence continued to guide finances.”

“…the finance minister felt that India was best served by sticking to the fiscal consolidation profile announced under the FRBM Act and there were no surprises,” he said. he told PTI in an interview.

Finance Minister Nirmala Sitharaman, in her fifth consecutive budget, increased capital expenditure by 33% to Rs 10 lakh crore for infrastructure development for 2023-24, and announced a lower budget deficit target of 5.9 % for FY24 while maintaining it at 6.4% for the current FY.
She also reiterated her intention to bring the budget deficit below 4.5% of GDP by 2025-26.

“This dramatic gamble on capex by the Center and the support of capex to the states as well…is the complete opposite of revadi (gifts) and populism,” Bery asserted.

He noted that Nari Shakti and sustainability are two other cross-cutting themes that run through the budget. While noting that there are certainly headwinds blowing through the economy amid fears of a global recession, he said, “the budget, I think is an answer to that.”

Bery said efforts would be needed to boost domestic demand, in case global economic growth remains weak and exports fail to pick up.

“If international demand is going to be subdued, if access to international finance is going to be more difficult, that will impact private investment in India to some degree,” he said, adding that it is why the budget focuses on capax. .

In the government’s latest comprehensive budget led by Prime Minister Narendra Modi ahead of the general election, Sitharaman on Wednesday unveiled tax cuts and savings plans to appeal to the middle class, women and pensioners, and announced spending massive housing and infrastructure cuts as she walked a tightrope between fiscal prudence and meeting public expectations.

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