{"id":211753,"date":"2022-10-26T17:53:50","date_gmt":"2022-10-26T12:23:50","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=211753"},"modified":"2022-10-26T17:53:50","modified_gmt":"2022-10-26T12:23:50","slug":"not-a-pre-election-budget-please","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/not-a-pre-election-budget-please\/","title":{"rendered":"Not a pre-election Budget, please!"},"content":{"rendered":"\n

Source<\/span><\/b>: The post is based on an article\u202f\u201cNot a pre-election Budget, please!\u201d<\/strong>\u202fpublished in\u202f<\/span>Business Standard <\/span><\/b>on\u202f<\/span>26<\/span><\/b>th<\/span><\/b> October 2022<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n

Syllabus: GS 3 \u2013 Economic Development<\/span><\/b>\u00a0<\/span><\/p>\n

Relevance:\u202f<\/span><\/b>measures to tackle the fiscal deficit and the need to avoid pre-election Budget.<\/span>\u00a0<\/span><\/p>\n

News<\/span><\/b>: The Finance Ministry has started preparing the Union Budget for 2023-24. It would be presented on February 1, 2023. <\/span>\u00a0<\/span><\/p>\n

It is expected that government should not make 2023 a pre-election budget as pre-election budget includes spending to attract voters. This spending further increases the burden on the government.<\/span>\u00a0<\/span><\/p>\n

Instead, the budget for 2023 should focus on fiscal consolidations rather than increasing the deficit.<\/span>\u00a0<\/span><\/p>\n

Why is there a need for fiscal consolidation over the pre-election budget?<\/span><\/b>\u00a0<\/span><\/h5>\n

The Union Finance Minister had set for the Centre a fiscal reduction plan to be achieved over a longer period.<\/span>\u00a0<\/span><\/p>\n

Fifteenth Finance Commission has also recommended states to reduce its fiscal deficit.<\/span>\u00a0<\/span><\/p>\n

Accordingly, the Centre\u2019s fiscal deficit is set to be brought down to 4.5 per cent by 2025-26 while the states should bring theirs down to 3 per cent by 2023-24.<\/span>\u00a0<\/span><\/p>\n

As per revised estimates for 2021-22, the combined fiscal deficits of 18 major states would be about 3.4 per cent and are expected to decline to only 3.3 per cent in 2022-23.<\/span>\u00a0<\/span><\/p>\n

Therefore, achieving a 3 per cent fiscal deficit target for the states in 2023-24 looks difficult.<\/span>\u00a0<\/span><\/p>\n

The Centre has also brought down its fiscal deficit from 9.2 per cent of gross domestic product (GDP) in 2020-21 to 6.7 per cent in 2021-22 and is likely to bring it down to 6.4 per cent in 2022-23.<\/span>\u00a0<\/span><\/p>\n

Therefore, reducing its fiscal deficit to the set target of 4.5 per cent would be difficult if the finance ministry treats the budget for 2023-24 as a pre-election exercise.<\/span>\u00a0<\/span><\/p>\n

Further, fiscal consolidation is also necessary to face the emerging global economic challenges, and check the rising inflation along with the depletion of forex reserves.<\/span>\u00a0<\/span><\/p>\n

Therefore, ensuring financial stability through fiscal consolidation should be the goal rather than achieving higher growth through increased spending.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on an article\u202f\u201cNot a pre-election Budget, please!\u201d\u202fpublished in\u202fBusiness Standard on\u202f26th October 2022.\u00a0 Syllabus: GS 3 \u2013 Economic Development\u00a0 Relevance:\u202fmeasures to tackle the fiscal deficit and the need to avoid pre-election Budget.\u00a0 News: The Finance Ministry has started preparing the Union Budget for 2023-24. It would be presented on February 1,… Continue reading Not a pre-election Budget, please!<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216],"class_list":["post-211753","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704900373},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/211753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=211753"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/211753\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=211753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=211753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=211753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}