Budget prioritises growth over fiscal consolidation: ICRA Limited MD

The Union Budget FY23 injected a dose of optimism with the country experiencing the third wave of Covid-19. The balance it struck between spending and prudence, entailed a robust 25 per cent increase in capital expenditure, amid a marginal 1 per cent rise in revenue spending and a modest fiscal consolidation of 0.5 per cent of GDP.

The Budget has pencilled in modest 6.0 per cent growth in revenue receipts, dampened by a contraction in non-tax revenues. It has targeted moderate tax revenue growth of 9.6 per cent, which appears realistic given an impending contraction in excise flows, and is