5 Major Announcements Expected From Union Budget 2023

Union Finance Minister Nirmala Sitharaman will present the Union Budget 2023-24 on February 1. The government is expected to focus on infrastructure development and announce some relief for people in the form of tax benefits.

All eyes are on how the government plans its expenditure and controls fiscal deficit and inflation. If the government spends more on capital and revenue expenditure than expected then it is likely to increase the fiscal deficit. This could result in higher market borrowing by the government, which exerts pressure on the interest rates and triggers inflation.

Lower fiscal deficit

The Goldman Sachs Group has said that India might cut down its fiscal deficit target by 50 basis points for the next financial year starting 1 April 2023. Goldman economists including Andrew Tilton and Santanu Sengupta wrote in a report that India will keep its deficit to 5.9 per cent of the gross domestic product in the new fiscal year.