Indian government seeks approval of financial players

Significance

The government projects a narrower fiscal deficit. The budget will be the last for a full fiscal year before the 2024 general election, when Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) will be aiming to secure a third consecutive governing term.

Impacts

• Less affluent people will likely find their consumption expenditure squeezed.
• Government spending on infrastructure projects will likely have only a modest multiplier effect on overall income.
• BJP strategists will be as focused on upcoming state polls as on the 2024 election.