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The Union Budget was presented taking note of various macro and global challenges namely :

1. Rising global inflation and rates, resulting in slower global growth and recession fears in some continents.

2. Full economic recovery, requiring return to fiscal consolidation and normalizing monetary policy.

3. Rising geopolitical tensions, leading to supply chain disruption that may lead to demand - supply mismatch and rising supply led inflation.

4. Last but not the least, the demand for sectoral support in light of slowing global growth and public expectations on tax benefits.

* Union Budget 2023-24 has done an excellent job of not only managing the expectations of common people but also has provided enough growth drivers in terms of higher infra spending and job creation, unleashing the potential of India, objective of reaching the last mile, inclusive development, supporting youth and small enterprises, green growth and carrying out further financial sector reforms.

* On the fiscal front, Union Budget has returned to the path of fiscal consolidation by limiting the deficit to 5.90% and re-iterated their medium term goal of reducing fiscal deficit gradually by 2025-26. Budget 2023-24 has assumed a GDP growth of 10.50%, that seems like an achievable target.

* Union Budget has done a remarkable job of maintaining growth momentum by enhancing the capital expenditure to Rs.10 Lakh crore to boost investments in infrastructure and productive capacity. The same will go a long way in enhancing the confidence of the global investors to look at India as oasis of growth in a slowing global growth environment. ? On the personal Income Tax front, the Budget 2023-24 tried to migrate tax payers to the ‘new regime’ by giving certain benefits in terms of lowering tax rates and reducing tax slabs, to raise exemption slabs up to Rs.7 lakhs from existing Rs.5 lakhs. The Budget also reduced the peak surcharge from 37% to 25% thereby reducing the peak rates down to 39%.

* To sum-up, Budget 2023-24 has provided strong growth impetus in the form of capital spending, climate change, upliftment of the weaker section of the society, women empowerment, focusing on youth, support to MSME, simplification of tax regime, continuation of financial sector reforms and welcoming digitization.

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