Budget 2024 Expectations: From capex target to fiscal deficit, CareEdge predicts these changes for India's economy

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Also Read: Budget 2024: Focus on rural schemes, infra investment likely, says veteran fund manager Mihir Vora Sitharaman's declaration that it will be a vote of account suggests that no significant policy announcements are likely expected in this interim budget. With the announcement of the election dates around mid-March, the model code of conduct (MCC) is expected to come into effect barring the government from announcing any policy decisions.

As a a Vote on Account is merely an interim authorisation to spend money, as opposed to a full Budget that includes details of expenditures and receipts, including tax changes and government policies, this time significant tax and policy changes are unlikely. The upcoming pre-election interim budget occurs at a juncture when the overall economic landscape appears stable, which is underpinned by the easing of financial conditions, and robust macroeconomic data, according to CareEdge.

‘’The current budgeting exercise is also confronted by economic headwinds such as the deceleration in the global economy, pressures in the agriculture sector, and strains on the rural economy,'' said the credit ratings agency. Also Read: Nirmal Bang highlights 6 major themes that could dominate the Interim Budget 2024 CareEdge expects the government to continue its focus on capital expenditure (capex) and fiscal consolidation in FY25.

The analytics firm also predicts a slight fiscal deficit slippage this year on lower nominal growth. Here are the five key highlights of Interim Budget 2024 expectations as predicted by CareEdge for next month.