“The budget 2023 comes at a time when the world is expecting the next pandemic wave, the geopolitical uncertainties, including the continued war between Russia and Ukraine, and slowing growth, but the continued high level of inflation in the United States. It is also a pre-election year budget. The budget for 2023 is expected to announce policy measures that promote economic growth, reduce the fiscal deficit, create jobs, and manage inflation. We can expect fiscal prudence in the budget with no big tax or expenditure reforms.
We should see the continued high level of capital expenditure and a further push to manufacturing-led growth. To support the manufacturing sector, the budget should consider reversing recent increases in import tariffs, as they are self-defeating and hinder exports. Additionally, the budget should issue guidelines to the states to streamline cumbersome regulations on starting manufacturing businesses, such as those related to environmental clearances, without compromising on environmental standards. The budget may announce a simplification of the capital gains tax structure, which would be a positive step for investors. Overall, any measures that boost domestic productivity would be welcome.”