Arun Jaitley to present General Budget today

Finance Minister Arun Jaitley will present the General Budget in Parliament today for 2016-17. Mr Jaitley faces a tough task of balancing the needs of farm sector as well as the industry when he presents his third Budget as he seeks to garner resources to boost public spending for higher growth amid global headwinds. The Budget is coming amid worries over government finances and direction of reforms and country's growth rate in the competitive world.

Noting the challenges posed by a global slowdown, the Economic Survey which was tabled in the Parliament on Friday lowered the economic growth forecast for the current fiscal to 7.6 percent from the previously projected 8.1-8.5 percent range mainly because of lower agricultural output due to deficit rainfall. 

The Survey has specifically pointed to the need for the government to review its medium-term fiscal strategy, a possible pointer to the challenges



that the Centre could face as it has to raise salaries of government employees and recapitalise beleaguered banks the next fiscal, without increasing borrowing. 

Certain steps like extending benefit of interest subsidy scheme to more sectors to boost exports is likely to be announced in the Budget. It may also look into the demands of Special Economic Zone, SEZ players who have sought reduction or even removing the minimum alternative tax. The Budget is expected to address retrospective tax concerns. 

The government could increase import duty on gold, since gold imports have increased over the year and has partly contributed to the trade deficit and weak rupee on account of forex outflows. American rating agency, Moody's said, the importance of the upcoming budget lies in its message on the government's fiscal consolidation plans. The general public has high expectations from the Budget.