The recent emphasis on fiscal responsibility has led to a renewed focus on subsidies and incentives. As of 2022, the government has implemented measures to reduce subsidies by 10% annually. This move is expected to save the exchequer around $1.5 billion.
Experts predict that such reforms will have a positive impact on the economy, with a potential growth rate of 7% by 2025. However, critics argue that the pace of reform is slow, and more needs to be done to address the fiscal deficit. With a target to reduce the deficit to 5% of GDP, the government faces an uphill task. As the Union Budget approaches, all eyes are on the finance minister to unveil more comprehensive reforms.