Budget 2017: Arun Jaitley faces task of balancing expectations post-note ban with kick-starting growth

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New Delhi | Published: January 28, 2017 4:39:09 AM

While the budget is less than a week away, finance minister Arun Jaitley would have the daunting task of balancing the myriad expectations post-demonetisation with kick-starting growth.

With oil prices rising again, the government would lose the cushion of low prices and also probably the accruing revenue gains.With oil prices rising again, the government would lose the cushion of low prices and also probably the accruing revenue gains.

While the budget is less than a week away, finance minister Arun Jaitley would have the daunting task of balancing the myriad expectations post-demonetisation with kick-starting growth. With oil prices rising again, the government would lose the cushion of low prices and also probably the accruing revenue gains. With US interest rates on the rise again, FM will have to ensure a stable rupee while also ensuring foreign investors do not check out of Indian markets in droves as has happened in the past few months. Moreover, there is also the task of getting credit growth back on track, which hit its lowest point last year in December.

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Although exports seem to be looking up, with the global economy still under pressure, it would also require a government nudge to start performing again.

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What the FM would need to do is give a stronger push to growth that is expected to climb down post-demonetisation. Thus, FM Arun Jaitley would have a lot on his plate on Wednesday, as he presents what could be the most challenging Budget in recent history.

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