Union Budget 2017: Finance Minister Arun Jaitley sees three major risks to emerging market economies in this year, even as he believes that India will continue to shine as a bright spot in the global economy. These three risks are US Federal Reserve rate hike, rising crude oil prices, and tendency for protectionism from some parts of the developed world. “The current US Federal Reserve stance to increase policy rates in 2017 may lead to lower capital inflows in the emerging market economies,” Jaitley said in his Union Budget 2017 speech. “Rising crude oil prices will also impact EMs, though a quick response from shale gas producers may temper the impact,” he said, adding the third risk as, “In several parts of the world there may be a retreat of goods and services because of protectionist tendencies of some economies. This may affect exports.”
FM Jaitley began his Budget 2017 speech by saying, “I raise on the occasion of this auspicious day of Basant Panchmi to present the Union Budget 2017-2018. Spring is a season of optimism,” he said.
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Finance Minister Arun Jaitley said that his government has launched a massive war on black money. “Our government was elected amidst huge expectations. The expectations were on governance,” he said. “Our mission is to bring about a transformative shift in the economy. We have focused on targeted delivery, we have moved from informal to a formal economy. Inflation in double digits has been tackled, we are on a high growth path.”
Union Budget 2017 comes in the backdrop of the historic demonetisation drive that was carried out by the Narendra Modi government. There is huge pressure on the government and FM Jaitley to propel economic growth, at a time when demonetisation has slowed down the economy.