Budget financial year 2023 2024 review
Overall, Great Budget for a New India.
1. Nominal GDP assumed at Rs. 301 lac crores or 10.5% over FY23, a pragmatic number.
2. 15% growth in Tax assumed. Very reasonable.
3. Gross borrowings (Rs. 15.4 lac crores) and Net borrowing (Rs. 11.8 lac crores) on expected lines.
4. No splurging/ populist announcement because of upcoming elections. Very responsible fiscal management.
5. Consistency: This budget builds on foundation laid in previous budgets. What I liked most is consistency of approach of prior years. 6. Focus on inclusive growth: Expanding Digital Public Goods for rural areas, focus on agri tech industry, accelerator fund for agri-startup, modern technology for agriculture, agriculture credit target increased to Rs. 20 lac crores.
7. Fiscal deficit (Income – expenses) 5.9% of GDP as expected.
8. Repeated heard the word new digital India, taking digital to rural India. If followed up, can lead to revolution in rural India. Center for AI.
9. Infrastructure: Note carefully where the fiscal deficit is going into, and this will inspire you. Investment in infrastructure of Rs. 10 lac crores! 33% jump. Mind-blowing. Multifold over the last 10 years. India will be and look truly different if we stay this course for the next 10 years.
10. Total investment in infrastructure is planned at 4.7% of GDP (including central 3.5% + 1.2% infrastructure development in states, under 50-year zero interest rate loan to states).
11. So, our fiscal deficit is going into building infrastructure and the nation. So the quality of expenditure is great. Meaning it will go to building our railways, roads, ports, highways, we can build a new India. For example, investment in railways up 29% from 1.4 lac
crores to 1.8 lac crores. Investment in railways up 9 times in 9 years! We need such modern infra for long term growth.
12. Imagine if this money had gone into giveaways, it would have made people feel good temporarily, but it would have gone straight into consumption and fuelled inflation. Now that the 4.7% of GDP
will be spent for building some real infra on the ground, that will fire up GDP in a sustainable way.
13. End of the day, this will still reach down the line for consumption through the contractor, their employee etc, but at-least there will be infrastructure that will boost economy.
14. 50-year interest free loan for states if they spend it on urban planning, housing for police personnel, children library, unity mall, digital infrastructure etc. So good quality expenditure.
15. Focus on ease of doing business. 39,000 compliances have been reduced. 3,400 legal provisions have been decriminalised.
16. Reduction of personal income tax slabs.
Overall, a credible budget, fiscal prudence, consistency, focus on capex, rural and inclusion. Our nation is on the right track, new India coming up.
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