Measures announced in Budget to promote jobs, spur economic growth: FinMin

The measures like increased capex boosting the green economy and initiatives for strengthening financial markets announced in the Budget 202324 are expected to promote job creation and spur economic growth the finance ministry said on ThursdayIn its Monthly Economic Review the ministry said during the December 2022 quarter various HighFrequency Indicators HFIs pointed towards a slowdown in general as monetary tightening appeared to have started weakening global demandThis may continue in 2023 as various agencies have forecasted a decline in global growth Apart from the lagged impact of monetary tightening the uncertainties emanating from the lingering pandemic and relentless conflict in Europe may further dampen global growth it notedEven as global output is expected to slow the IMF and World Bank project India to be the fastestgrowing major economy in 2023As in 202223 India faces the coming financial year with confidence imparted by underlying and overall macroeconomic stability while being on the alert against geopolitical and geoeconomic risks the monthly review saidThe Economic Survey 202223 tabled in Parliament ahead of the Budget had pencilled in a growth rate of 65 per cent for FY24 but with more downside than upside risks it addedInflation risks are likely to be lower for India in FY24 Still they will not have vanished as global conditions such as geopolitical conflicts and consequent supply disruptions that contributed to higher inflation in 2022 are still present it saidAlso Read Indias potential in green energy no less than a goldmine invest here PM Modi to investorsPredictions of a return of El Nino conditions in the Pacific could presage a weaker monsoon in India resulting in lower output and higher prices Similarly as with prices external deficits may be a lesser challenge in FY24 than in FY23 but close attention to trends in international trade and capital flows will be warrantedThe 202324 Budget has yet again provided a capex stimulus to growth by increasing the Centres capex budget to Rs 10 lakh crore 33 per cent higher than the previous yearBy doing this the Government is continuing its push towards investmentdriven growth amid global headwindsThe measures announced in the Union Budget FY24 such as a rise in capital expenditure increased focus on infrastructure development boost to the green economy and initiatives for strengthening financial markets etc are expected to promote job creation and spur economic growth it saidThe Budget FY24 has also announced measures to increase spending and consumer demand These include the rationalisation of tax slabs and an increase in the basic exemption limit from Rs 25 lakh to Rs 3 lakh under the New Personal Income Tax Regime NPITRThe Union Budget has further introduced important process measures such as the setting up of the National Financial Information Registry the implementation of a single window system and reforms in propertytax governance among othersThese will improve processes in the financial market and in turn enable regulators to create a more effective feedback mechanism to review regulations the ministrys monthly review report saidThe steps announced in the Union Budget FY24 will sustain the growth momentum that has characterised the Indian economy in the current year while aiding in addressing inflationary pressures Even though the Consumer Price Index CPI inflation rose to 65 per cent in January 2023 headline inflation in India has been showing a downward trend in the second half of FY22 it addedMeasures announced for the MSME sector will likely reduce the cost of funds and aid small enterprises Revision in tax slabs under the New Personal Income Tax Regime is expected to boost consumption thus providing more impetus to economic growth Easier KYC norms expansion of DigiLocker services and overall impetus on digitisation and lastmile connectivity are predicted to strengthen financial markets the report saidThanks to the emphasis on macroeconomic stability in the last several years the Indian economy faces the year ahead with confidence while being mindful of the risks it addedThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever