The Union Budget for FY24 focused on capex-led growth, improving the quality of government spending, and providing a fiscal consolidation path. The budget was presented on 1 February, by finance minister Nirmala Sitharaman, against a crucial macro-political backdrop, with an expected slowdown in global growth, a smaller nominal GDP buffer and ahead of the general elections in 2024. Navigating the growth paradox amid an increasingly volatile global backdrop remains a key challenge for the government this year. But, what if growth slows down further in FY24, due to recession in developed markets and the lagged impact of tighter monetary policy? Although the Economic Survey projected a nominal GDP growth of 11 percent YoY in FY24, the Budget assumed 10.5 percent nominal GDP growth next year. So, are the budget numbers overly optimistic? What will be the big implications of the Union Budget FY24? To understand that, Forbes India's Nasrin Sultana is joined by Radhika Rao, Senior Economist, DBS Group.
