{"id":211808,"date":"2022-10-26T20:17:50","date_gmt":"2022-10-26T14:47:50","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=211808"},"modified":"2022-10-26T20:17:50","modified_gmt":"2022-10-26T14:47:50","slug":"not-a-pre-election-budget-please-2","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/not-a-pre-election-budget-please-2\/","title":{"rendered":"Not a pre-election Budget, please!"},"content":{"rendered":"\n

Source<\/strong>: The post is based on an article\u00a0\u201cNot a pre-election Budget, please!\u201d\u00a0published in\u00a0Business Standard <\/strong>on\u00a026th<\/sup> October 2022<\/strong>.<\/p>\n

Syllabus: GS 3 \u2013 Economic Development<\/strong><\/p>\n

Relevance:\u00a0<\/strong>measures to tackle fiscal deficit<\/p>\n

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

This budget will be a last full Budget of the present government in its second term. Therefore, the budget is expected to be a pre-election budget. It means it may include promises for spending to attract voters.<\/p>\n

However, government should not make it a pre-election budget as these spending further increases burden on the government.<\/p>\n

Instead, the budget of 2023 should focus on fiscal consolidation.<\/p>\n

Why is there a need for fiscal consolidation?<\/strong><\/p>\n

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

Fifteenth Finance Commissio<\/strong>n has also recommended states to reduce its fiscal deficit.<\/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.<\/p>\n

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

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

The Centre has brought down its fiscal deficit from 9.2 per cent of 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. However, reducing its fiscal deficit to the set target of 4.5 per cent would be difficult if finance ministry treats the budget for 2023-24 as a pre-election exercise.<\/p>\n

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

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

Source: The post is based on an article\u00a0\u201cNot a pre-election Budget, please!\u201d\u00a0published in\u00a0Business Standard on\u00a026th October 2022. Syllabus: GS 3 \u2013 Economic Development Relevance:\u00a0measures to tackle fiscal deficit News: The finance Ministry has started preparing the Union Budget for 2023-24. It would be presented on February 1, 2023. This budget will be a last full… Continue reading Not a pre-election Budget, please!<\/span><\/a><\/p>\n","protected":false},"author":10320,"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-211808","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":1704924498},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/211808","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\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=211808"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/211808\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=211808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=211808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=211808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}