Budget to continue social welfare spends as poor consuming less: Ind-Ra

Economic recovery has not yet become broadbased and sustainable as only creamier sections are consuming, India Ratings and Research said on Wednesday and added that the FY24 budget is expected to continue with social sector spending.

The annual budget for the financial year 2023-24 will be presented in parliament on February 1.

Finance Minister Nirmala Sitharaman will focus on making consumption demand resilient, boosting infrastructure and manufacturing capex, skill development and increasing productivity, fiscal consolidation and climate change in the last budget of this government, the agency said.

It said there is likely to be a "stark difference" between economic performances of the first and second halves of FY23, which will suggest that it is only the upper layers which are driving the private final consumption, the agency said.

"Anecdotal evidence suggests that the gap between have and have nots has widened. ...various social welfare schemes such as PM-KISAN and MGNREGA wil