BUDGET 2023: 5 Steps Highlighted to Improve Economic Conditions

Finance Minister Nirmala Sitharaman will present the Budget 2023 to Parliament on February 1. The first part of the 2023 budget session is slated to go through February 10. The full session is slated to begin on January 31 and end on April 6, with a break in between.

Several steps  suggested that can be taken to improve the country’s economic situation, as the finance minister of India.

Here are five key points that can be considered:

1. Addressing High Inflation Issue

For many years, India has experienced severe inflation, which has increased the cost of living for its people and decreased the purchasing value of their money. The finance minister can take action to combat this by introducing measures like lowering tariffs on food and fuel and enhancing supply chain effectiveness. One area where India has traditionally lagged behind is energy security.

2. Generate Employment

Due to India’s high unemployment rate, there are numerous social and economic issues. The finance minister can solve this by concentrating on generating employment throughout a range of economic sectors, including manufacturing, agriculture, and services. This can be done by putting in place policies like tax breaks for businesses that hire new employees, financial aid for small and medium-sized businesses, and infrastructure spending.

3. Attract more Foreign Investment

India has a large market and a growing economy, but it is still not attracting as much foreign investment as it should. To attract more foreign investment, the finance minister can implement policies such as reducing red tape and bureaucracy, providing tax incentives for foreign companies, and improving the overall business environment.

4. Improve Infrastructure

India’s infrastructure is in dire need of improvement, and this is holding back economic growth. To address this, the government can push more FDI into investing in the development of roads, ports, airports, and power plants and invest in new technologies such as renewable energy.

5. Tax Net Reforms

India’s low tax base continues to be a worry as the parallel economy expands. Changes must be made immediately to indirect tax collection and implementation so that direct taxes may eventually lose some of their significance. Additionally, some tax incentives for using digital payment methods along with a progressive decrease in paper currency via CBDCs might broaden the tax base and boost tax to GDP ratios.

In conclusion, as the finance minister of India, these above mentioned several steps can be taken to improve the current economic situation of the country.

By addressing the issues of high inflation, unemployment, increasing foreign investment, improving infrastructure and implementing capital market reforms, the finance minister can help to promote economic growth and improve the lives of citizens.