Key Features of Budget 2017

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