• Finance Minister Nirmala Sithraman refrained from hiking expenditures and cut back on social spending.
  • Capital spending is being privileged relative to social spending.
  • The government slashed allocation for the MGNREGA scheme.
  • Fertilizer subsidies cut from Rs.2.25 lakh crore to Rs. 1.75 lakh crore.
  • The government plans to reduce fiscal deficit to 5.9 per cent in 2023-24.
  • Fiscal conservatism and emphasis on capital expenditure has growth implications.
  • Lower consumption expenditures among poor and middle classes will lead to negative growth.