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The finance ministry in its report, on Half Yearly Review of the Trends in Receipts and Expenditure in relation to the Budget at the end of the first half of FY23, has said that government remains committed towards strong macroeconomic fundamentals and financial stability despite global headwinds.  The current global economy is navigating through incredibly rough waters attributed to global uncertainties, the unfolding of conflict in Ukraine, the reaction of financial and commodity markets to the changing scenarios and tight monetary policy, etc.

It mentioned ‘However, despite hurdles, the Indian economy has performed reasonably well as compared to other major economies and shown its resilience amidst the global slowdown and global uncertainties.’ It stated the budget 2022-23 was presented against the backdrop of recovery from the unprecedented Covid-19 crisis and clues of global uncertainties on account of the war in Ukraine.

Further, it stated the fiscal policy led by favourable macroeconomic fundamentals ensured a higher pace of capital expenditure compared to last year to push for rapid infrastructure development, considering the multiplier effect of capital expenditure on the overall economy. The government has increased the allocation to capital expenditure by 35 per cent to Rs 7.5 lakh crore in 2022-23 as compared to Rs 5.5 lakh crore in the previous year. This is 2.9 per cent of GDP, the highest ever.