Private investment will be given a boost in the budget, this priority will be in front of the government

Education and healthcare are likely to be in focus again in Budget 2023 as Covid still remains a matter of concern.

Union Budget 2023: Union Finance Minister Nirmala Sitharaman is going to present her last full budget on 1 February. In which private investment can be promoted mainly. Because some new social sector initiatives are likely to be major themes in the upcoming budget. Along with this, education and healthcare are likely to be in focus again as Covid still remains a concern. PM Modi will hold a meeting with key officials of the finance ministry earlier this week to finalize the February 1 budget, which is the last full budget of this government before the 2024 general elections.

With assembly elections in some states ahead of the general elections this year, political messaging is likely to be high, while the main focus is on promoting development and investment. The FY23 budget had proposed a 13.2% increase in expenditure over the FY22 budget estimates. Similarly, the order of increase is possible this year also.

PM gave this advice

According to sources, it has been felt that more expenditure is needed to make an impact on the ground. This meeting has been called to decide the direction of the economically important budget in view of the turmoil in the advanced economies. Several measures are needed to uplift the development. Apart from infrastructure, the increase in spending in education and health is important. Modi met leading economists on Friday for pre-budget consultations. He advised the government to continue capital expenditure and take measures to make India more attractive to global investors.

Focus will be on investment

Support for states such as capital expenditure credit lines could be further expanded in this budget, as well as a substantial boost to overall capital expenditure in the previous budget, which raised spending on asset creation by 35.4% . By the end of November, the Center had spent nearly 60% of the FY23 budget. A similar thrust is likely in FY24 amid signs of a nascent revival in private sector investment.

This is likely to be supported through a slew of policy measures to encourage private investment. This may include steps to reduce compliance, provide easier dispute resolution and bring stability to the tax regime. Among specific measures, the government is expected to extend the low corporate tax rate of 15% applicable on new investments beyond March 2024, and some customs duty exemptions to promote local manufacturing while focusing on ease of doing business. remove the

Economists emphasized on this

Rahul Bajoria of Barclays said in a note that the budget is likely to continue to prioritize fiscal consolidation amid a volatile global financial market. India is projected to grow at 7% in the current fiscal, while the International Monetary Fund (IMF) expects a 6.1% growth in FY24, the fastest among major economies. A fiscal deficit of 6.4% of GDP was proposed in the budget for FY23. It is likely to target 5.8% of GDP this year on the way to the proposed 4.5% of GDP by FY2016. Economists have stressed the need for fiscal consolidation. Rapid growth in tax revenue has helped India pursue an active fiscal policy.