New Delhi, Jan 30 (TIWN) The FY24 Union Budget is likely to be a tightrope walk, considering its fiscal guidance and the 2024 Lok Sabha elections, Phillip Capital said in a report.

Thus, the government's innovation will be tested - to deliver an effective budget, encompassing capex, rural, social, policy incentives, subsidies, and tax/growth buoyancy. In case the government adopts an easy approach to the fiscal path, across-the-board expansion can be expected and delivered.

In the upcoming budget, we anticipate continued focus on PLI incentives (for new sectors), Atmanirbhar Bharat (to enhance manufacturing, exports, while managing imports), sustainability (supply/demand push towards renewable energy and alternative technologies), and infrastructure expansion (defence, railways, ports, logistics, and roads).

The government wants to encourage the adoption of the new income-tax regime, thus incentivisation is likely, the report said.