While others are expecting a tax friendly Budget 2017, Rakesh Jhunjhunwala is not expecting any tax relief from FM Arun Jaitley. In an interview with ET Now, he said “I don’t expect tax relief, but I don’t see anything negative for markets in Budget”. He further said that Long-term bull market in India will be a consequence of economic growth. “Surprising upmove in markets indicating downside is limited. Expect to see a pause in Dollar strength.”
Attributing markets decline in October-December to Trump victory and demonetisation, he said that, it came as a shock but it is expected that things will normalise faster-than-expected. Stating that common consumer has not been impacted due to demonetisation, Jhunjhunwala further said that “I believe its impact will be limited.” Meanwhile, the 50-day deadline to deposit the junked Rs 500/1,000 notes in banks came to an end on December 30 but clarity still eludes on whether the weekly withdrawal limit of Rs 24,000 would be eased or not. Even on the last day of the 50-day window, queues were seen at bank branches and ATMs. Finance Minister Arun Jaitley said that RBI has enough currency and situation of cash supply has improved significantly.
The Union Budget 2017-18 will be presented on February 1. Having decided to advance the budget presentation by a month, the government took the line that it should not be presented in the middle of Assembly poll in Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur. So, it consulted the Election Commission, which has concurred with the finance ministry’s view that it is an annual financial statement and can come anytime of the government’s choice, officials said.
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Also, The Cabinet chaired by Prime Minister Narendra Modi took the historic decision of scrapping a separate Railway Budget and merging it with the General Budget. According to the government, the unified budget will bring Railways to centre stage and present a holistic picture of financial position of the government.