Budget 2024: What measures can give further impetus to the economy?
Vote on Account rather than a full Budget ahead of the General Elections in 2024, there is widespread optimism that the government will prioritise fiscal prudence while unveiling initiatives aimed at fostering economic growth. The full Budget for the next fiscal year, that is, FY25 will be presented in July after the formation of the new government post the General Elections. It is unlikely that the government will make big-bang announcements in the Budget on February 1.
Consequently, the chances of announcements of measures that could provide further impetus to the economy and bolster market sentiment are feeble. Nevertheless, analysts believe that the government's announcements to invigorate the manufacturing sector and amplify capital expenditure would wield considerable influence on the Indian economy's trajectory. G.
Chokkalingam, Founder and Head of Research at Equinomics Research Private Limited believes the strategic sales of PSUs and the use of that money to increase the capital expenditure further will give a significant boost to the economy. "The strategic sales of PSUs and the use of that money to increase the capital expenditure further will give a significant boost to the economy because our manufacturing GDP has come down to nearly 18-20 per cent," said Chokkalingam. "The government also considering improving the manufacturing sector to generate more rural and semi-urban jobs.
In my view, there are many PSUs in the minerals, mining and logistics sectors, which the government need not run. So the government should go for strategic sale and use that money for aggressive capex for promoting the manufacturing sector's GDP share increase," Chokkalingam said. (Exciting news! Mint is now on WhatsApp Channels.
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