Boosting stability in financial sector amidst global uncertainty

Union Budget 2023 comes at a time when the world is grappling with geopolitical uncertainties, headwinds in the form of slowing growth and high inflation, despite measures taken by central banks and governments across the globe. While India has emerged as one of the bright spots in world economy, it is not isolated from these macro-economic headwinds and possibility of an economic slowdown looms larger than ever.

Coincidently, India’s upcoming budget would be the last full-fledged budget of the current Government before the 2024 Lok Sabha elections and stakeholders would eagerly await cues from the upcoming Union Budget 2023-24.

The Government kicked off its annual Budget preparation exercise for Financial Year 2023-24 on October 10 and is expected to look for ways of reviving growth amid a gloomy global outlook. The market is expecting the Government to continue its thrust on infrastructure and CAPEX spend to give an impetus to growth, while maintaining the path of fiscal prudence.

“Growth priorities will be kept absolutely on the top for the upcoming Budget 2023”, Sitharaman said during a fireside chat at an industry forum in Washington, DC. Inflation concerns will have to be addressed, while at the same time momentum cannot be weakened, which would be the point of balance. So, it will have to be a carefully structured Budget in which the growth momentum would have to be maintained, she added.