The forced capex gamble in Budget 2023
New Indian ExpressThe more important question is, where is the money for such large government expenditure coming from? The government cannot increase tax collections dramatically since its tax structure is already skewed, with a heavy burden on the common people to the benefit of corporates who have not reciprocated. The Economic Survey tells us that demand for NREGA work continues to be very high despite tags such as the ‘world’s fastest growing economy’. Essentially, the government has been caught in a quandary and forced to slash welfare expenditure to fund government investment since the private sector has delivered a double whammy of taking lower taxes and not investing. In essence, the government’s revenues and expenditure plan have gone awry, and it has been forced to take this big bet in the 2023–24 budget.