The bid day has finally arrived! As India watches with bathed breath as to what Finance Minister Arun Jaitely is going to churn out in his budget,people are expecting something which will make it worthwhile for this year’s financial transactions.
Why is the Budget important?
It makes the end of a dubious amount of work by the Government and a lot of number crunching to present before us the actual state of economic affairs.
Fiscal prudence and free spending expectations are the most important takeaways in this Budget as this will be the last ever budget of the Government.
What are the key pointers you need to watch out this fiscal budget?
A higher fiscal deficit will always count for a pre-election spending spree.The markets will focus on how INDIA needs to widen its fiscal deficit and increase the investments in key areas such as agriculture to make way for the re-election prospects in the coming elections 2019.
A worry among the various investors is such that they may slip away from the huge spending and the bond yield may decrease to 10-15 basis points.
The Centre is also expected to give a major push to the development of the key important 7 states and 200 districts.They are going to focus on the 200 districts as part of India’s key developmental strategy.
The Center will shift its focus from the obsolete schemes and then focus on various program mes.The Government will focus on a top aided fiscal situation and will also give priority for new schemes.Finding the right resources will be a top priority.
The development focus of the states will start at a time when there is quite a leeway for the 2019 general elections.
NITI AAYOG is also working on a ranking of all the states and will also do a ranking of the backward states of India.