Economic Priorities for Union Budget 2024: A Call for Growth-Centric Policies
Keki Mistry, former CEO of HDFC, highlights the need for growth-centric policies and effective measures to tackle unemployment in the upcoming Union Budget 2024.
Union Budget 2024Economic GrowthUnemploymentInfrastructurePrivatizationAffordable HousingReal Estate NewsJul 20, 2024
Mistry stressed that the Budget should prioritize sectors that generate employment, particularly construction, real estate, and infrastructure. He also suggested that tax cuts could stimulate consumption, which has been impacted by rising food prices and increased housing loan rates.
On fiscal policy, Mistry anticipates continued fiscal consolidation and expects the fiscal deficit to be lower than initially indicated. He also acknowledged the government's significant investment in infrastructure but noted a lag in private sector capital investment, which he attributed to various factors including capacity overhang from the pandemic and election-related uncertainties.
Regarding privatization, Mistry indicated that while the government has made strides in this area, the Budget might provide further clarity on specific goals and timelines. He also highlighted affordable housing as a key area of focus, praising previous initiatives like the credit-linked subsidy scheme and urging continued support for affordable housing projects.
On the topic of geopolitical risks, Mistry acknowledged the potential impact of rising oil prices on India's economy. He noted that while current oil prices have stabilized, any significant increase could affect GDP growth and inflation. Lastly, on infrastructure financing, Mistry supported the role of specialized institutions like NABARD in supporting long-term infrastructure projects, while also recognizing the potential for banks to contribute more to this sector.
Overall, Mistry's comments emphasize the need for a growth-centric approach in the Union Budget 2024, with a focus on job creation, consumption, and effective measures to tackle unemployment.
Frequently Asked Questions
What is the current state of India's economy?
India's economy is on a strong footing, with a growth rate of 8.2%, significantly surpassing the global average of 4%.
What is the impact of inflation on the lower end of the market?
Rising food prices and increased housing loan rates have disproportionately impacted lower-income groups, felt the brunt of inflation.
How can tax cuts stimulate consumption?
Historically, reductions in tax rates have led to increased tax collections, and a progressive reduction in individual tax rates could serve as a major boost to overall economic growth.
What is the role of privatization in the economy?
The privatization program is underway, and the Budget might provide further clarity on specific goals and timelines, aimed at increasing efficiency and growth.
How can affordable housing contribute to the economy?
Affordable housing is crucial for job creation and has a significant multiplier effect on the economy, making it a key area of focus for the government.
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