Decoding the Budget with The Hindu BusinessLine

Will the govt.’s capex push revive growth?

The 2022-23 Budget has been delivered. Union Finance Minister Nirmala Sitharaman has laid down her priorities clearly. The focus is on reviving growth and fiscal consolidation will happen, but not in a hurry.

The Government of India has given a massive push for capital expenditure in bid to lay the foundation for a rapid pace of economic growth and also with a hope that it will crowd-in private capex. After many years, there is a possibility that all four engines of growth -- public consumption, government spending, private capex and exports -- may fire in unison. If that happens, the Indian economy will register a rapid pace of growth.

Has this Budget given the necessary impetus for it? When does the government see a revival in private investments? Will lack of demand side stimulus come in the way? How does the government plan to tackle the skewed recovery post-pandemic? Where does it see the bond yields, which are on the boil after government announced a large gross borrowing for FY23?