Stating that the budget 2023 is more directional with a quarter of a century of sustained growth in mind, Commerce and Industry minister Piyush Goyal on Saturday sought to deflect criticism in certain quarters that the government focused more on the supply-side than on growth-boosting demand side of the economy.
On February 1, the government presented a budget with no tax increases and thus no new revenue generation measures but chose to do record borrowings to fund a budgeted 35 per cent increased capital investment at ` 7.5 lakh crore and also offered an additional ` 1 lakh crore to the states for capital investment in interest-free loans.
Together with the states, the overall capital expenditure next fiscal will be at a record high of Rs 10.5 lakh crore.
This will have the government borrowing hitting a historic high with gross borrowing at `14.95 lakh crore and net borrowing of `11.6 lakh crore.
Demand has been the biggest missing link in the economy even before the pandemic hit the nation and scuppered the last strain of demand as those who had money chose to save and not splurge while tens of millions became jobless.