Budget to see poll-oriented spending boost to focus on infra capex: Report

Ahead of the national elections, the last full budget of the Modi government is likely to boost welfare spending with a focus on rural and infra capex, according to a report.

However, it may pencil in for a lower fiscal gap at 5.8 per cent next fiscal, given the likely reduction in subsidies, even though nominal GDP growth is likely to fall by a third to 10.5 per cent, it added.

The government is likely to miss the medium-term fiscal roadmap of bringing down the fiscal deficit to 4.5 per cent by FY26, given the overall domestic and global slowdown, as per the report by Swiss brokerage UBS.

The government will present its last full budget on February 1 amid global and domestic headwinds.

The nation is bound for hustings mid-next 2024, which will have its sway on the budget, the report said, adding the government is expected to support growth by boosting welfare spending, albeit within fiscal boundaries, which will also help it manage macro stability risks amid the rising global ...