Prioritising stability over growth

The backdrop of the Budget augurs well for the government, but a closer look calls for a cautious approach

Ajay Tyagi

Illustration: Binay Sinha

Amidst the uncertain global environment and gloomy economic outlook, many credible international institutions have repeatedly projected India as a sweet spot and, so to say, a safe harbour for investments.

The signs of peak inflation ebbing, the National Statistical Office  (NSO) forecast of a rather respectable 7 per cent gross domestic product growth for 2022-23, and relatively mild new Covid variant augur well as the backdrop for the finance minister to present the Budget on February 1. This feel-good factor helps given that it would be the last full-year Budget before the 2024 Lok Sabha elections. So far so good.

A closer look at the macroeconomic scenario, however, throws up a different picture and calls for following a cautious approach while firming up Budget proposals.

On the domestic front, even an optimist would find the combined fiscal deficit of around 10 per cent, the current account deficit projected at over 3.5 per cen

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

Also Read

Union Budget 2023: Experts don't expect surprises in social sector outlay

Budget 2023: A look back at some major announcements in previous Budget

Crypto industry wants 0.1% TDS, Sebi-like regulator in Budget 2023

Indian states' fiscal deficit rose nearly 79 per cent after lockdown: RBI

India's April-August fiscal deficit recorded at 32.6% of FY23 target

Envisioning a truly smart city

The bicycle theory of the 2023 Budget

General elections 2024: The BJP chief has his task cut out for him

Crisis in the Himalayas

A curious unwinding

First Published: Jan 19 2023 | 10:23 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to