Indian Finance Minister Nirmala Sitharaman will present the 2023 Union Budget to parliament today. The budget comes amid continued inflation.
Indian Finance Minister Nirmala Sitharaman will present the 2023 Union Budget to parliament today.
The budget comes amid continued inflation. The Indian middle class, whose wages have not kept pace with price changes, are seeking tax relief in order to boost their spending power. The budget is expected to deliver excises for the middle class on essential goods like food and fuel, and tax incentives for STEM industry and the education sector. For the third year in a row, the budget will also be presented in a paperless form, and will be available across India in both Hindi and English through the Union Budget app.
Expect that the budget will pass the parliamentary vote with little trouble and sufficient support across all major parties. Expect also that the tax reliefs will alleviate voters’ concerns in the short term, sufficient to demonstrate the capabilities of the government in time for the 2024 general election. In the long run however, tax relief is unlikely to stem price inflation and address the root of the cost-of-living crisis, potentially leading to further dissatisfaction and friction between the Indian populace and government.