Budget 2023: Government will emphasize on increasing expenditure for growth: Finance Minister Nirmala Sitharaman
December 17, 2022: Finance Minister Nirmala Sitharaman has said that in the next budget, the government will emphasize on increasing the public expenditure to increase the economic growth rate.
FM Sitharaman on Budget 2023: Finance Minister Nirmala Sitharaman has made an important statement about the possible strategy of the government in the next budget of the country.
She has said that in the next budget of the Narendra Modi government, emphasis will be placed on increasing public expenditure, government expenditure to speed up economic development.
She said that in this case, the mood or trend of the next budget of the Modi government will also be the same as in the previous years.
The Finance Minister said these things at a function of FICCI (Financial Industry Association) in Delhi.
India’s position is better than most of the big countries of the world
Despite these difficulties, the current state of the Indian economy is better than most of the major countries of the world.
However, the continuation of interest rate hikes to control inflation at the international level and fears of further worsening of the economic environment in 2023 are increasing this challenge.
In such a situation, everyone’s eyes will be on what kind of roadmap the finance minister presents to the country to deal with these situations in his next budget.
The last full budget before the 2024 Lok Sabha elections
Nirmala Sitharaman’s next budget will be the last full budget of the Modi government before the Lok Sabha elections in April-May 2024.
Obviously, in this budget, the government will leave no stone unturned on those issues, which can affect the people of the country on the economic front.
In this sense, the government will face the challenge of controlling inflation, increasing demand and employment and increasing the growth rate in the upcoming budget.
The challenge of balancing inflation and growth
The major challenge facing the government is that the GDP growth rate of the country has decreased during the last few months.
Many institutions, including the Reserve Bank, have predicted a decline in India’s GDP growth rate for the current financial year.
According to RBI, the country’s GDP growth rate will be 6.8 percent during the entire financial year of 2022-23.
But this growth rate was 4.4 in the third quarter, which is expected to further decrease to 4.2 percent in the fourth quarter (January-March 2023).
Despite the decline in growth rate, the Reserve Bank has to go on the path of increasing interest rates to control inflation.
Striking a delicate balance between reducing inflation and increasing the growth rate is not an easy task for any government or central bank.
Capex was increased by 35% in the last budget
Nirmala Sitharaman will present the Union Budget for the fifth consecutive time as the Finance Minister on February 1, 2023.
What he has said about following the spirit of the previous budget in the upcoming budget is important because in the budget of 2022-23 she had increased the capital expenditure or Capex (capital expenditure or Capex).
In that budget, capex was increased from Rs 5.5 lakh crore to Rs 7.5 lakh crore as part of an effort to recover the economy from the impact of the Kovid-19 pandemic and increase demand. That is, in one year only, she had increased the capex by 35.4 percent.
The finance minister Nirmala Sitharaman said, “We are preparing to present the next budget of the country.
This budget will also carry forward our same spirit which has been in the previous budgets.
We are going to set an example, which we have done before, but now we will take it further, which will determine the future of India for the next 25 years.”
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