What to expect from the Union Budget

For watchers of India’s economy, next week is one of the most significant of the year as Finance Minister Nirmala Sitharaman delivers the Union Budget for FY22/23 on Tuesday. Unusually, the fiscal position appears much healthier-than-expected ahead of the announcement. But rather than ramping up spending, we think the Finance Ministry will bank the recent fiscal gains and instead focus on bringing the public debt burden onto a more sustainable trajectory.