The estimates of receding growth in India are in line with such estimates revealed earlier by the IMF, World Bank, etc. The growth slowdown necessarily connotes a decrease in income, both for the individuals as well as the economy. Despite decreasing growth, Finance Minister (FM) presented a Budget that lays down an increase in total expenditure from ₹39.44 lakh crore in 2022-23 to ₹45.03 lakh crore in 2023-24. It indicates that one or more of the following options could have been adopted by the FM while preparing the Budget viz. increase in taxes, increase in borrowings or decrease in public expenditure.
The first option i.e. to finance total expenditure considerably through the imposition of more taxes gets nullified on account of slowing growth amid high unemployment in the economy.
It left the FM with the latter two options. A preliminary investigation of the budget documents reveal that both increase in borrowings and decrease in public expenditure have been resorted to. To the extent borrowings are concerned, government is prepared to borrow nearly ₹18 lakh crore in this fiscal which is ₹1,25,620 crore higher than the budgeted figures of 2022-23 ( ₹31497 crore than revised figures of 2022-23). It is pertinent to mention here that government is already reeling under high debt (expected to reach ₹155 lakh crore by March 2023) and another ₹18 lakh crore sourced this year is going to make the going tough for the government. Not only the interest payments are a cause of concern, rather the amount that was borrowed by the government in 2014 is also getting due this year for repayment. A brief of interest payment liability of the government of India for the past one and a half decade or so, is highlighted in table 1. Mounting interest and principal repayments compelled the government to prune the public expenditure.
Bu hikaye BUSINESS ECONOMICS dergisinin February 1 - 28, 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye BUSINESS ECONOMICS dergisinin February 1 - 28, 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Deposit shortage: challenges facing India's banking ecosystem
In any macroeconomic framework, the household sector plays a critical role as a driver consumption, savings, and overall economic activity.
India's future dreams in Semiconductors & AI
A midst the gloom of the RG Kar affair or the Tirupati laddu scam or even the continued terrorist attacks in Jammu & Kashmir, even after the completion of the first general election in the state, we find hope and encouragement when the founder of Nvidia, Jensen Huang, in his recent visit to India says \"India will be a gigantic opportunity for us\".
The Ramayana: Justice and Modern Man
Consisting of Twenty-Four Thousand worthy Sanskrit verses, the Ramayana is one such epic, which provides a pathway to one committed to justice to establish himself as an ideal human being by following the exemplary life of its hero.
Vallabhbhai Patel: A Sardar of Farmers, A Matchless Social Reformer and the Maker of United India
Sardar Vallabhbhai Patel was instrumental in unifying the princely states to form the Union of India.
Understanding Prosperity: NOBEL Prize awarded for groundbreaking research on institutions and economic development
The Royal Swedish Academy of Sciences has awarded the Memory of Alfred Nobel to three US-based economistsDaron Acemoglu, Simon Johnson, and James A. Robinson\"for their studies on how institutions are formed and affect prosperity.\"
Sinking Resources: Groundwater crisis and sustainable solutions in Kolkata
Kolkata's underground water crisis is becoming a serious issue, driven by rapid urbanization and the construction of high-rise buildings.
Tourism Industry positively impacted by the festive season
Diwali transforms streets into a spectacle of festive lights, Diwali transforms streets into olis, and families gearing up for grand celebrations.
RBI's Shift to a Neutral Stance: Signaling a New Phase in Monetary Policy
For over a year, the Reserve Bank of India (RBI) has taken a firm stance against inflation, raising interest rates by 250 basis points between May 2022 and February 2023 in response to post-pandemic price pressures.
UK Budget
There _ he latest UK budget represents a departure from previous fiscal documents.
Han Kang's Historic Nobel Prize Win
The 2024 Nobel Prize in Literature has been awarded to T South Korean writer Han Kang, 53, known for her works including The Vegetarian, The White Book, Human Acts, and Greek Lessons.
