The annual budget will be presented on 28th February, 2015 and there is an air of expectation which has built up around it. This is Modi government's first full budget and hence a lot of emphasis is going to be placed on the government's flagship promises since 2014 (Swachh Bharat, Jan Dhan Yojna, Make In India, etc).
Given that crude has fallen by nearly 50 per cent from its recent peak, it has created a headroom of nearly Rs 500 bn of budgetary spend. With resource monetization (coal and spectrum) likely to far exceed expectations and with schemes like DBT resulting in additional savings, the government is likely to use these funds to push through capex into infrastructure investments, to give a further push to the economy.
Although the government is likely to pursue spending to push economic growth, it is unlikely to spend lavishly, as it would want to stick to its Fiscal Deficit targets.
Comments
0 comment