Union Budget, for the first time, this year, gets unveiled on 1st Feb 2017. This happens to be the fourth budget of Prime Minister Narendra Modi’s government. Presented by the Finance Minister –Arun Jaitley, this budget session was keenly awaited post demonetization drive recently carried out by the government . IPER organized a per-budget session a few days back and followed it with a live budget session for their management students and faculties.
Mr Jaitely said, demonetization will not have a lasting impact on our Indian economy. The allocation of budget for welfare of women and children in several ministries will now be Rs. 1,84,632 crore. After 92 years, this is the first joint budget (Union Budget + Railway Budget). Railways will completely concentrate on the safety of passengers, capital works, cleanliness and various other major issues.
Quick glance at Expected Impacts on Economy
- Service sector estimated to grow at 8.9 per cent in 2016-17.
- Universal Basic Income proposal would cost between 4-5 per cent of GDP.
- Market interest rates are low due to note ban, fiscal gains from GST will take time to realise.
- Current Account Deficit (CAD) narrowed in the first half (H1) of 2016-17 to 0.3 per cent of GDP.
- Fiscal windfall from Pradhan Mantri Garib Kaayan Yojana, low oil prices.
- Agriculture sector to grow at 4.1 per cent in the current year up from 1.2 per cent in 2015-16.
[Source : http://indiatoday.intoday.in/story/budget-session-2016-economic-survey-union-budget/1/870509.html]
Recent alterations in the Indian Economy
Post demonetization, more changes are anticipated. Our economy makes a move towards the GST (Goods and Service Tax) and Unified tax regime. In future, we will witness greater cash accountability and digitization through variety of payment channels. All these changes mandate us to pay short term adjustment prices for long time gains.
The Government’s approach for Union Budget 2017
The government shown its confidence in its current schemes and approach. We see an increase in the number of allocations in this budget 2017-18. Seems that the upcoming step is to implement these schemes more effectively. As a result, from an general perception, this would assist the economy .
The budget also initiates schemes to improve job skills. Thus a healthier job market for the ever changing business requirements is available. In fact, bring lot of changes in the rural areas that improvise the economy easier and faster.
Whilst there are lots of enduring challenges in the domestic sectors like inflation, on the international front owing the Geo-political issues, etc. this union budget sets a new benchmark. It gives indications of a higher sustainable growth procedure and in turn – the progress of our economy.