Budget 2019: Even though he rejected rumours that the upcoming interim budget could be fiscally expansionary, Finance Minister Arun Jaitley hinted that it may include some big-ticket announcements that ‘can’t wait’.
Budget 2019: Even though he rejected rumours that the upcoming interim budget could be fiscally expansionary, Finance Minister Arun Jaitley hinted that it may include include some big-ticket announcements that ‘can’t wait’. The government is making efforts to move on the path of fiscal prudence unless “an unusual situation arises”, he also said in his address to a gathering of industry leaders in Mumbai through video conference from New York on Thursday.
Here are 5 things that Arun Jaitley said:
1) Larger national interest to dictate budget
Arun Jaitley said that the larger interest of the country dictates what would be the part of the interim budget.
2) Markets understand government’s approach
Against the backdrop of fall in food prices and challenges in front of the farm sector, the government may take some steps, Jaitley hinted. The stock markets understand that the approach of the government is logical and not a populist one, he added.
3) Need 8% growth
The existing rate of growth at 7-7.5% needs to be lifted above 8% through more reforms in areas like agriculture and infrastructure, he noted indicating government’s likely focus in the budget.
4)Fiscal prudence rewards
“Fiscal prudence (and) consolidation is always rewarded and we have stuck to fiscal prudence. In exceptional situations like last year when we received GST collections for (only) 11 months, we had deviated a bit to 3.5% from target of 3.2%,” the minister added.
5)Rates can be lowered
Arun Jaitley didn’t directly sought a rate cut by the Monetary Policy Committee but said that the India’s real interest rates must not remain among the highest globally.