Union Budget 2023–24 attempts to strike a balance between accelerating growth and achieving fiscal consolidation. The increased allocation to capital expenditure is important to crowd in private sector investment. However, the allocation to the Food Corporation of India and Bharat Sanchar Nigam Limited under capital expenditures is not likely to yield returns. On fiscal deficit reduction, more front-loading it’s adjustment in 2023–24 would have eased the problem of achieving the target of 4.5% of gross domestic product by 2025–26. Furthermore, the budgeted reduction is predicated on the assumption of significant compression in subsidies and transfers. Ultimately, the success of the intentions depends upon implementation.
