oppn parties Budget 2023: Growth Should Be The Mantra

News Snippets

  • Delhi chief minister Arvind Kejriwal, referring to a spate of FIRs for putting up posters in Delhi which said "Modi Hatao, Desh Bachao", said that even the British did not act in such manner
  • The 2023-24 Appropriation BIll, which allows the government to spend Rs 45 lakh crore in the fiscal, was passed by Lok Sabha in 9 minutes without any discussion
  • Sources say that Amritpal Singh fled to Haryana and may now be in Uttarakhand
  • Experts say that Rahul Gandhi's disqualification from Parliament will kick in immediately as the conviction has not been stayed
  • Tatas to invest $2bn in super app Tata Neu
  • Chief Economic Advisor V Anantha Nageswaran has said that inflation will drop as commodity and food prices have fallen
  • Government will define quality norms to ensure better 5G service
  • Stocks tumble again on Thursday after two sessions of recovery: Sensex loses 289 points to 57925 and Nifty goes down by 75 points to 17076
  • Amicus curiae and senior advocate K V Vishwanathan has told the Supreme Court that the changes made in law and three extensions given to the present director of Enforcement Directorate are illegal and will imperil the integrity of the agency
  • Supreme Court says it cannot judicially direct the government to acquire land or buildings near the court for advocates' chambers
  • ISSF Cup shooting: Indian pair of Rhythm Sangwan and Varun Tomar win silver in 10m sir rifle mixed team event
  • WPL: UP Warriorz take on Mumbai Indians in the Eliminator today. The winner will play Delhi Capitals in the finals
  • World Boxing: Four Indians - Nikhat Zareen, Nitu Ghanghas, Lovelina Borgohain and Saweety Boora - enter the frinals in their respective category
  • Bombay HC imposes costs and dismisses a petition by a housing society that sought to have a community-wise cap on residents
  • Delhi Police files 159 FIRs for defacement of public property and 49 for posters saying 'Modi Hatao Desh Bachao'
Rahul Gandhi disqualified from Parliament, Wayanad Lok Sabha seat declared vacant
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Budget 2023: Growth Should Be The Mantra

By Our Editorial Team
First publised on 2023-01-30 10:19:36

About the Author

Sunil Garodia The India Commentary view

Finance Minister Nirmala Sitharaman will present the last full budget of this government on February 1. There has been intense speculation over what the budget has in store. Most economists point to the fact that with the country's economy in relatively good shape and inflation now somewhat controlled, it is times for the government to go for a reform and growth oriented budget. The government has the political incentive to do so as it is practically the election year budget. So will there be many sops for the taxpayers? Knowing Sitharaman and the way the NDA government functions, that is not likely. Instead, the government, buoyed by good tax collections and a relatively comfortable fiscal deficit position, might go for increased spending on infrastructure projects to fuel growth and generate jobs.

It is a fact that despite India achieving the best growth rate among the large economies in the world, growth has suffered in the last few months for many reasons, not the least among them being high interest rates (the measure resorted to by the RBI to combat rising inflation) and lower exports due to a slowdown across the world. The slowdown has also meant that job creation is at the lowest in many months and more and more people are being thrown out of their jobs, especially in the information technology and related services sector. Hence, the budget must go the whole hog for giving a solid push to the economy.

For this to happen, apart from government spending on infrastructure, private investment must rise substantially. Rapid job creation in the private sector is absolutely essential to revive sentiment. With inflation below the RBI tolerance level for two consecutive months now, the RBI must maintain status quo on key policy rates, or even reduce them, to spur investment. The government must, instead of providing benefits for savings to taxpayers, lower taxes to increase the spending power of the middle class. That would increase demand for goods and services and fuel growth. Measures such as production-linked incentive have been a huge success and the government is extending them to other sectors. The budget must build on this and introduce other such measures, undertake financial reforms and bat for growth.