Union Budget 2023 augments capex without sacrificing fiscal consolidation

The quality of the fiscal deficit is also set to improve in FY24, with capex accounting for a much larger share of the same vis-a-vis FY23

As always, expectations were rife from the Union Budget. The Budget for 2023-24 has walked a fine line, providing a big boost to growth-inducing capex while attempting a fair degree of fiscal consolidation.

The former was much needed, because while India is growing faster than the other major economies, the pace of expansion is decidedly uneven across sectors, and a global slowdown is looming. Fiscal consolidation assumed as much urgency, as the deficits remain much higher than pre-pandemic levels, and interest payments usurp a large part of the hard-earned revenue base of the government.

The Budget Speech did seem to