new delhi the union budget for 202324 may set the capital expenditure target for the next financial year at rs 995 lakh crore a 20 percent increase from the budget estimate of rs 75 lakh crore for 202223 according to radhika rao senior economist at dbs bankrao believes the need to spur a revival in the investment cycle still rests on the public sector as a slowdown in global growth and tighter financial conditions emerge as speedbumps for private sector activityrao thinks budget 2023 will focus on supplementing existing institutional structures to support a strong infrastructure push via the national infrastructure pipeline nip and funding mechanisms such as the asset monetisation rogramme and national bank for financing infrastructure budgetary support to infrastructure ministries might be linked to their asset monetisation performance in fy24 after the fy23 target of rs 162 lakh crore might be missedsecondly the budget would focus on tech startups new economy digital economy playersand thirdly the government would focus on commitments towards climate change and cop27 initiatives will require a strong thrust towards nonfossil energy sources including renewable energy hydrogen and other clean energy spendsrao expects the upcoming budget to focus on higher allocations towards capexoriented ministries as well as social rural programmes secondly employment focus through more allocations towards the rural employment scheme as well as skill training and upgradation she does not expect any major direct tax changes after rationalisation efforts in recent budgetsrural economy and social welfare push the rural economy is likely to be one of the focus areas especially after real wage growth stagnated in 2022 due to high inflation increase in input prices and volatility in weather conditions farming community one potential area is increasing allocations towards the rural employment scheme mnrega besides this further impetus to allied schemes such as crop insurance rural road infrastructure lowcost housing power and utilities foodprocessing industry etc are other focus areas backstopping urban employment focus by channeling resources towards skill vocational training and upgradationhigher investments into health and education are likely to remain one of the key demands there have been calls for the income tax exemption limit to be raised from the current rs 250000 but this demand might revive the debate over lack of a wider tax base to make up for missed revenues core and core of core schemes are likely to be in focus as the economy recovers from the pandemic with a preference for reallocation of resources rather than acrosstheboard increase in spends said rao reorienting food subsidiesthere were a few changes to the food subsidy arrangement in late2022 which provide clarity for the fy24 mathin dec 2022 the government discontinued the free food program referred to as pmgkay which was unveiled to provide food relief during the pandemic this free program was introduced in apr20 and was extended multiple times intending to provide additional 5kg of food grains to an estimated 815 million beneficiaries while the pmgkay will be ceased from january 2023 the existing food public distribution