Topic: Government Budgeting.
4. Enumerate the major announcements in the Union Budget for 2023-24. Do you think the budget balances its objectives of accelerating growth by increasing public investment while containing the fiscal deficit? State your opinion. (250 words)
Difficulty level: Tough
Reference: The Hindu , Live Mint
Why the question:
Even though the economy has staged a recovery and surpassed the pre-pandemic income level, it is still 7% below the pre-pandemic GDP trend; growth has to be fuelled by increasing public investment. At the same time, with inflation still beyond the upper tolerance limit and aggregate fiscal deficit (Centre and States) still in the range of 9% to 10% of GDP, ensuring macroeconomic stability requires continued fiscal consolidation.
Key Demand of the question:
To write about the major announcements and potential of budget in balancing growth and fiscal stability.
Structure of the answer:
Introduction:
Begin giving context of Union Budget of 2023-24.
Body:
In the first part, write about the major initiatives proposed in the Union Budget for 2023-24 – Atmanirbhar Clean Plant Program, Urban Infrastructure Development Fund (UIDF), Entity DigiLocker and Pradhan Mantri Kaushal Vikas Yojana 4.0 etc.
Next, write the measures enumerated in the budget in order to promote growth.
Next, write about the measures proposed in order to contain deficit and achieve fiscal stability.
Conclusion:
Conclude by writing a balanced opinion on the overall nature of the budget.
