Key Features of Budget 2017-2018
INTRODUCTION
- In the last two and half years administration has moved from discretionary, favouritism based to system and transparency based
- Inflation brought under control. CPI-based inflation declined from 6% in July 2016 to 3.4% in December, 2016
- Economy has moved on a high growth path. India’s Current Account Deficit declined from about 1% of GDP last year to 0.3% of GDP in the first half of 2016-17. FDI grew 36% in H1 2016-17 over H1 2015-16, despite 5% reduction in global FDI inflows. Foreign exchange reserves have reached 361 billion US Dollars as on 20th January, 2017
- War against black money launched
- Government continued on path of fiscal consolidation, without compromising on public investment.
- The Indian economy has been robust to mild shocks and IMF forecasts, India to be one of the fastest growing major economies in 2017
CHALLENGES IN 2017-18 - World economy faces considerable uncertainty, in the aftermath of major economic and political developments during the last year
- The US Federal Reserve’s , intention to increase policy rates in 2017, may lead to lower capital inflows and higher outflows from the emerging economies.
- Uncertainty around commodity prices, especially that of crude oil, has implications for the fiscal situation of emerging economies
- Signs of retreat from globalisation of goods, services and people, as pressures for protectionism are building up
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