Budget 2018: The countdown to the last full Budget of the present Narendra Modi government has begun and the country is waiting to know what Finance Minister Arun Jaitley has to offer in the Union Budget 2018. He will present the Budget on February 1. Ahead of the Budget 2018, Chief Economic Advisor Arvind Subramanian spoke TV channels and explained that state of the economy, what was to be done under the current circumstances.
Under Arvind Subramanian’s supervision, the Finance Ministry on Monday also released Economic Survey 2018, which detailed developments in the Indian economy over the previous 12 months, summarised the performance on major development programmes, and highlighted the policy initiatives of the government and the prospects ahead of the India Budget 2018.
Here are top five advice from Arvind Subramanian ahead of the Budget 2018:
1. He said that higher oil prices may hamper the economic growth in the future and the government must target an ambitious fiscal consolidation for next year.
2. He also said that being vigilant about the rising oil prices does not mean an excise duty cut. He also said that the government will not go back on retail price deregulation.
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3. Arvind Subramanian strongly advised against pre-election populism. He said pre-election fiscal populism should not be embraced and the government must look at ambitious fiscal consolidation targets in the Union Budget 2018.
4. On rural distress, he said that it is a long-term problem and the climate change will disproportionately impact unirrigated lands. He suggested the government to come up with smart irrigation techniques. He said that there is a need to address agrarian challenge with co-operative federalism.
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5. On GST, he said that while the 28% GST bracket has shrunk significantly, there is more scope to improve rate structure from the existing ones.
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The Economic Survey report 2017-18 has estimated the economic growth rate in the fiscal year 2019 between 7% and 7.5%, while saying that the rising crude oil price has become a major concern and is expected to grow by average 12% in the FY19. The Budget 2018 comes against the backdrop of fiscal concerns from the 3.2% target of the Budgetary allocation, along with rallying crude oil prices on the global front.