Budget 2023 - Long Vision Budget

In spite of Lok Sabha elections next year, government steers clear of short-term populist measures and focuses on strengthening the economy.

- Joe C. Mathew & Ashutosh Kumar

IN THE RUN-UP TO general elections, governments have historically presented Budgets laden with vote-catching populism, short-term measures, and even imprudent fiscal initiatives to make a pitch for re-election. Economists feared Budget 2023 could be one of those fiscal health-busting moves with dollops of doles and freebies that could derail India's journey towards fiscal consolidation and lower deficits.

In the Budget presented on February 1, however, the government showed remarkable maturity by not falling for that temptation. "A strong foundation to fulfill the grand vision of a developed India" is how Prime Minister Narendra Modi described the Budget for FY24. So, does Union Budget FY24, presented by Finance Minister Nirmala Sitharman, look at a 25-year horizon (when India will be celebrating 100th year of Independence)?

The central themes of the Budget, whether it is capital expenditure-led push for highways and railways, climate-friendly actions, digital push, fiscal discipline or social welfare schemes, are all aimed at the long term. These are aligned with major transformations taking place across the world-rapid digital adoption, rebalancing of supply chains, and environment sustainability. N. Chandrasekaran, Chairman, Tata Sons, believes this Budget positions India for a leading role in all three transformations that are underway across the world.

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