Budget 2023 Review - Populism Gives In To Investment-Led Spending Growth Strategy: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.The Union Budget 2023 was presented on Feb, 01 2023 amid high expectations. Since this was the last full budget before 2024 General Elections, it was expected that the government could announce some income support for the rural sector or implement some measures to boost consumption growth in the economy. However, the government did not give in to these expectations and continued with its investment-led spending growth strategy along with modest fiscal consolidation. Although the Economic Survey projected a nominal gross domestic product growth of 11% YoY in FY24, the Budget assumed 10.5% nominal GDP growth next year.Contrary to our expectation of lower-than-budgeted deficit in FY23, the Government of India kept it unchanged at 6.4% of GDP in FY23. This means that fiscal deficit was revised up to Rs 17.6 trillion in FY23, from budget estimate of Rs 16.6 trillion. At the same time, the GoI has budgeted the deficit at 5.9% of GDP (Rs 17.9 trillion) for next year, which is in line with the market consensus but higher than our expectations of 5.7%. Total liabilities of GoI are likely to rise to 56.2% of GDP in FY24BE from 55.9% of GDP in FY23RE owing to weaker growth and modest consolidation. Moreover, although the bonds market cheered the lower-than-expected gross market borrowings (albeit net borrowings were in line with the market consensus), the GoI has assumed another Rs 4.7 trillion worth of financing from small savings. The latter seems highly ambitious to us, and any shortfall in FY24E could mean either lower spending growth and/or higher market borrowings..Click on the attachment to read the full report:.More Research Reports On Budget 2023 Reviews, Highlights, Impacts.Budget 2023 Review - Keep The Engine Chugging Along: Dolat CapitalBudget 2023 Review - Accelerating Capex To Retool Economy: ICICI DirectBudget 2023 Impact On Personal Tax, Automobiles, Railway And More: IDBI Capital Analysis Budget 2023 - A Budget For All: CareEdge Analysis.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Budget 2023 Review - Populism Gives In To Investment-Led Spending Growth Strategy: Motilal Oswal

Although Economic Survey projected a nominal GDP growth of 11% YoY in FY24, the Budget assumed 10.5% nominal GDP growth next year.

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