Finance Minister Nirmala Sitharaman is expected to unveil Budget for upcoming financial year 2023-24 on February 1. Union Budget for financial year 2023-24 is of importance as it will be the last full year Budget going into union elections next year.
The Budget this year will lay out the roadmap for economic growth and is expected to be growth oriented, say analysts.
Finance Minister will keep on the path of fiscal consolidation and opt for narrowing the FY24 fiscal deficit to as low as 5.8 per cent in the upcoming Budget, analysts said.
The government may go for a fiscal deficit number which will be far lower than the 6.4 per cent of GDP budgeted for FY23, they said, pegging the Budget figure for the next fiscal in the range of 5.8 - 6 per cent.
"As this is the last full-year Budget before the Union Election in 2024, we expect it to be growth-oriented. The primary focus of the Budget is likely to be on job creation and investment-driven growth," said B Gopkumar, MD & CEO, Axis Securities.
The real estate sector may get a boost with some announcements to expand the current income tax benefit for housing. Measures to stimulate rural spending and infrastructure development would be the highlight in the Budget, he said.
"Any roadmap to build and bolster the entrepreneurship culture can promote self-reliance and go a long way in employment generation. Overall, with its focus on growth and development, this Budget may have something for everyone. FMCG, Manufacturing, MSME, and Banking are a few sectors that may see action," Gopkumar added.
Meanwhile, analysts added that the country will have to continue on journey of fiscal consolidation and it does not have the luxury of pausing for the next few years.
"The government's promised fiscal consolidation path will require a herculean effort over the next few years. Think of it like a long-distance cyclist that needs to keep pedalling hard to reach the finish line; if it were to suddenly stop, it risks falling over," HSBC India's chief economist Pranjul Bhandari said in a note.
