2017 marks the starting of new traditions in India. For the first time in Indian history, Budget 2017 will not just include the Railway budget, but it’ll also arrive earlier than its stipulated deadline.
The much-anticipated Budget 2017– the first budget to be introduced after the demonetization is slated for launch tomorrow. This is Finance Minister Arun Jaitley’s fourth budget that will attempt to ease the brunt of currency crisis following the events of the demonetization in India. Presenting the most challenging budget of their term, Jaitley will aim to revive Indian GDP with this budget.
After the President of India Pranab Mukherjee addressed a joint sitting of the two Parliament Houses today, Arvind Subramanian’s pre-budget economic survey was tabled in the house. Here are some snippets from the 2017 Economic Survey of India.
- Economic Growth witnessed a dip since last year but it’s expected to rebound in future.
Economic growth to rebound to 6.75-7.5 pc in 2017-18: #EconomicSurvey.
— Press Trust of India (@PTI_News) January 31, 2017
GDP growth in 2016-17 to dip to 6.5 per cent, down from 7.6 pc in last fiscal: #EconomicSurvey.
— Press Trust of India (@PTI_News) January 31, 2017
Financial critics of PRS Legislative Research analyse President’s introductory speech.
“The GDP is estimated to grow at 7.1% in 2016-17 as compared with 7.6% in 2015-16. However, the Consumer Price Index (CPI) in December 2016 was 3.4% down from 5.6% in December 2015.”
Happy Times for Indian Farmers.
Farm sector to grow at 4.1 per cent in the current fiscal, up from 1.2 per cent in 2015-16: #EconomicSurvey.
— Press Trust of India (@PTI_News) January 31, 2017
Growth rate declines for Indian Industries.
Growth rate of industrial sector estimated to moderate to 5.2 per cent in 2016-17 from 7.4% last fiscal: #EconomicSurvey.
— Press Trust of India (@PTI_News) January 31, 2017
Subramanian Sets a Deadline for the Government
Full #remonetisation expected in a month or two: #CEA Arvind Subramanian.
— Press Trust of India (@PTI_News) January 31, 2017
Growth in Infrastructure Industry
Eight #infrastructure sectors record #growth rate of 5.6 pc in December 2016 against 2.9 pc in December 2015.
— Press Trust of India (@PTI_News) January 31, 2017
- Top Highlights of the Budget Session
- Apparel, footwear and leather sectors will generate new possibilities for jobs. However, this realisation isn’t new because India makes $12 billion from trade expansion, as stated by Mihir S Sharma in his book “Restart– the Last Chance for the Indian Economy”.
- Demonetisation was a big risk for the centre, the government needs a strong aid for recovery.
- Contrary to the general perception, more currency was drawn in November than in December.
- UBI (Universal Basic Income) is a suitable alternative to social welfare schemes, aiming at poverty reduction.
- The cash will flow smoothly in the market by April 2017.
- After the implementation of the Seventh Pay Commission this year, the growth in revenue expenditure boosted to 23.2%. The capital assets grants achieved a growth of 39.5%.
- Indirect Taxes grow by 26.9% between April to November.
Though the survey promises good opportunities, several critics demand the government to put detailed numbers. Stay tuned for more updates.