The RBI has estimated the central government Capex multiplier at 2.4 in the first year and at an even higher level in the second year. An increase of 37.4 per cent has been budgeted for Government of India's (Gol's) Capex.
In addition, the Gol has incentivised the state governments to undertake Capex by providing them grants for capital asset creation amounting to 1.2 per cent of GDP, extending an interest-free loan for 50 years for Capex undertaken in 2023-24, and permitting them a fiscal deficit limit of 3.5 per cent of gross state domestic product (GSDP). However, alongside, Gol's investment through its public sector enterprises has fallen from 2.3 per cent of GDP in 2019-20 to 1.1 per cent in 2023-24 budget estimate (BE). Considering both investment expenditures together, the extent of the increase is much less, rising from 4 per cent of GDP in 2019-20 to 4.5 per cent in 2023-24 (BE).
We may recognise that the budget has supported demand through indirect channels as well. Some of these include the tax slab adjustment which may lead to an increase in disposable income especially in the lower middle-income segments and the crowding-in effects of the high government Capex which may boost private investment expenditure. It comes as a surprise that the effect of these growth stimuli is not reflected in Gol's assumption of the underlying nominal growth of 10.5 per cent for 2023-24. The budget has not taken a call as to the decomposition of this nominal growth between its real growth and inflation components.
Bu hikaye Business World India dergisinin February 25, 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 World India dergisinin February 25, 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
Gauging Trumponomics For India
Despite some shortto mediumterm headwinds in trade and immigration, the broader Indo-US vision of counterbalancing China’s influence is expected to ensure continued cooperation under Trump 2.0
Reflections on Consciousness and Creation
Indian-American DEEPAK CHOPRA on the nature of the universe, the digital fabric of existence, and the power of a conscious mind
MORE TAKE TO DRIVING IN STYLE
High-end luxury vehicles are no longer part of a niche market, but a rapidly expanding segment of automobile sales, driven by changing consumer preferences, rising disposable incomes and better infrastructure
India's Growing Affinity for Swiss Watches: A Luxury on the Rise
NDIA'S ROBUST ECONOMIC growth, projected to exceed 6 per cent in 2024 and 2025, is fostering a rising demand for aspirational products. As disposable incomes increase, particularly among the expanding middle class, luxury goods such as Swiss-made watches are gaining popularity.
An ENRiching Outlook
KPMG's latest report shows energy CEOs being optimistic about the sector's outlook. ANISH DE, Global Head, ENRC, KPMG speaks to BW Businessworld's Arjun Yadav on what's driving this confidence
Paving the Path to a Sustainable Future
Salesforce's ESG journey has made an impact beyond the company. SUNYA NORMAN, SVP of ESG Strategy and Engagement at Salesforce, shares more on how the tech giant integrates sustainability into its core operations, supporting global goals while empowering employees
LEADERSHIP TRANSITION AT XIAOMI INDIA
Xiaomi India is experiencing a leadership evolution, beginning with Muralikrishnan B's departure as President by the end of 2024. This change underscores Xiaomi's shift towards nurturing local talent amidst dynamic global shifts. The story tracks key transitions from Manu Kumar Jain's leadership to Muralikrishnan B's impactful tenure, along with recent strategic hires, highlighting Xiaomi's alignment towards market adaptability and consumer focus
WEAVING SUSTAINABILITY
Once a modest home textile manufacturer, Jindal Worldwide has evolved into a vertically integrated textile powerhouse, spanning critical segments of the yarn and fabric value chain
FORCE FOR GOOD
FY24 saw capacity expansions for Century Enka in nylon and polyester segments, along with investments in modernisation, renewable energy, and safety initiatives
REIMAGINING TOMORROW
For V-Guard, tomorrow signifies progress, driven by today's actions, setting the foundation for future growth and value creation for all stakeholders