“Union Budget 2023 has built on the foundation laid in prior budget- fiscal prudence without compromising growth. Fiscal deficit is expected to consolidate by 50bps to 5.9% in FY24 with a vision to consolidate to 4.5% by FY26. The quality of expenditure has improved with capex to GDP rising to 3.3% of GDP (vs. sub 2% pre-COVID). Massive increase in capex outlay alongside reduced tax liability on personal income tax is a twin approach to boost both infrastructure and consumption spending. Nominal growth expectations look tad optimistic, thereby laying a slight bit of manageable optimism to receipts. Long term capital gains tax has been left untouched allaying the fears of equity market. Inclusiveness has been catered to without losing an eye on transition to green economy. The gross borrowing number budgeted for FY24 is pegged at Rs 15.4 trillion, which is marginally better than street expectations. Prima-facie, budget 2023 should be cheered by equity and fixed income market alike.”