Union Budget likely to test govt's fiscal resolve ahead of 2024 elections

A review of budgets since Modi came to power shows he's been chipping away at subsidies, barring the pandemic years when assistance saw an increase

PM Modi
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The prime minister still has a year, before elections due in the summer of 2024, to course correct politically if it looks like fiscal prudence is going to hurt his party’s chances at the ballot

Ruchi Bhatia and Karthikeyan Sundaram | Bloomberg
India will unveil its budget Wednesday, testing Prime Minister Narendra Modi’s fiscal mettle seen as key to boosting investor sentiment even as it will likely leave less room for handouts a year before he seeks a third term.
 
Modi, who rides an enduring wave of popularity as his second term is coming to a close, looks poised to sustain fiscal consolidation as he takes the global stage with India’s presidency of the Group of 20 nations. Shrinking the deficit which hit a record 9.2% of gross domestic product during the first year of the pandemic is necessary for Asia’s third-largest

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First Published: Jan 30 2023 | 6:47 AM IST

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