Budget bets big on public infra: Subsidy bill falls as Covid concern eases

While presenting the Union Budget on Tuesday, Finance Minister Nirmala Sitharaman stressed the “overall sharp rebound and recovery” of the Indian economy from the Covid-19 pandemic. Yet this optimism did not extend to the Budget’s numbers, which assumed that nominal growth in 2022-23 would be 11.1 per cent in spite of a global inflationary environment and the Economic Survey’s prediction of real growth above 8 per cent.

The fiscal deficit for the current year, at 6.9 per cent of gross domestic product (GDP), narrowly missed the 6.8-per cent target despite a surge in some tax revenues. The FM has committed to reaching 4.5 per cent of GDP by 2025-26, while targeting 6.4 per cent in the coming year.