Budget 2023 To Support Growth, Shun Populism, Says Economist

Economist says 2023 budget to support growth, away from populism

Prime Minister Modi is expected to prioritize macroeconomic stability in his final full-year budget.

According to economist NR Bhanumurthy, India’s union budget due on February 1 will focus on supporting growth and balancing fiscal pressures, rather than resorting to populism ahead of the election. .

“There will be some temptation to take populist measures,” NR Bhanumurthy, vice-chancellor of Bengaluru-based BR Ambedkar College of Economics, told Bloomberg’s Rishaad Salamat on Wednesday. “But I hope they won’t mark that line.”

Prime Minister Narendra Modi is expected to prioritize macroeconomic stability by following a fiscal consolidation path in his final full-year budget ahead of national polls in 2024. target to narrow the budget deficit to 6.4% of GDP in the fiscal year ending March, and economists see it falling below 6% next year.

NR Bhanumurthy expects the government to come up with a reliable financial consolidation roadmap to attract investors. The government should allocate more funds to the rural employment program, he said, and also consider a similar proposal for urban areas to support job creation.

India’s unemployment rate rose to a 16-month high in December, increasing the challenge for the government amid slowing growth hit by weaker demand at home and abroad.

NR Bhanumurthy said: “If you want to create more jobs, you need to sustain the recovery we have seen over the last two years. The focus of the budget “should be results.”

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