A Growth-oriented, Inclusive Budget

FINANCE MINISTER NIRMALA Sitharaman has delivered a growth-oriented and inclusive Budget that aims to fulfil the aspirations of one of the fastest-growing major economies in the world.

- Kiran Mazumdar-Shaw

The FM has desisted from presenting a populist budget ahead of 2024 general elections and targeted a lower fiscal deficit for FY24. She has unveiled measures to create better infrastructure, improve ‘ease of doing business,’ encourage pharma innovation, spur domestic consumption and galvanise climate action through a thrust on green economy and energy transition.

The FM must be praised for sticking to the path of fiscal consolidation by targeting a half per cent reduction in fiscal deficit to 5.9 per cent in FY24. She has also reiterated her commitment to meet a medium-term goal of reducing the deficit further to under 4.5 per cent by FY26.

To stimulate a virtuous cycle of investment, the FM announced a 33 per cent hike in capital investment outlay to Rs 10 trillion for FY24. She also announced other measures for infrastructure creation, including a capital outlay of Rs 2.40 trillion for the Indian Railways, a push for revival of air transport infrastructure, continuation of the 50-year interest-free loan to state governments for another year, and proposed a Rs 10,000 crore per year Urban Infra Development Fund for Tier-2 and Tier-3 cities.

The speedy and efficient implementation of these projects can help kick-start a multi-year capex cycle in India by crowding in private capex investments.