BUDGET FOR VIKSIT BHARAT

Balances between prudence and populism. Fiscal deficit projected at 5.1%. Capex outlay pegged at Rs 11,11,111 crore

- NIVEDITA MUKHERJEE

In an interim Budget which walks the tightrope between prudence and populism and manages to straddle the shores of reforms and economic management, Finance Minister Nirmala Sitharaman set an ambitious agenda to leverage governance, development and perfomance (GDP) as a new paradigm to steer the vision for 'Viksit Bharat' in harmony with nature, with modern infrastructure and providing opportunities for all citizens and all regions to reach their potential".

The strategy laid out in the Interim Budget is to build on a strong economic foundation highlighted by the Government's projected real GDP growth of 7.3 per cent in financial year 2023-24 and global opinion. A robust growth in Q2 of FY202324 of the Indian economy marked by resilience and healthy macro-economic fundamentals, despite global economic challenges has prompted the RBI on an upward revision in growth projections for FY2023-24 from 6.5 per cent to 7 per cent.

The International Monetary Fund in its World Economic Outlook (WEO), October 2023, has revised its growth projection for India for FY2023-24 upwards to 6.3 per cent from 6.1 per cent projected in July 2023, reflecting increasing global confidence in India's economic prowess at a time when global growth projection for 2023 remains unchanged at 3 per cent.

"Geopolitically, global affairs are becoming more complex and challenging with wars and conflicts.

Globalization is being redefined with reshoring and friend-shoring, disruption and fragmentation of supply chains, and competition for critical minerals and technologies. A new world order is emerging after the Covid pandemic," said Sitharaman as she presented her 6th Budget.