Roadmap for upcoming budget on the cards
Updated: Jan 14, 2016 01:06:57pm
New Delhi Jan 14 (KNN) The government is preparing a roadmap for the upcoming Budget and it wants to make everyone happy when the ‘Pandora’s box’ of Union Finance Minister Arun Jaitley will open on March.
In this context, Finance Minister has been meeting representatives of every sector, calling for their suggestions for upcoming budget.
On Wednesday, Arun Jaitley met various economists who suggested that the government should consider deviating from the fiscal consolidation roadmap for the next financial year, while retaining the focus on public expenditure.
“We said that there can be some deviation but one has to adhere to fiscal deficit target in the medium term. Some deviation can be there for 2016-17,” Director, Indira Gandhi Institute of Development Research, Mahendra Dev said while addressing the media after the meeting.
Other suggestions from economists included bringing in changes in small savings rate and to focus on increasing private and public investment.
According to the fiscal consolidation roadmap, which was revised last year, the government proposes to reduce fiscal deficit to 3.5 per cent in 2016-17 from 3.9 per cent in the current financial year.
The finance ministry statement quoting Jaitley said that the government continues to adhere to the fiscal consolidation path.
Some of the members suggested that it would be better not to go for an aggressive fiscal consolidation but rather continue on public spending. Other members were of the view that higher growth can be achieved by following the path of fiscal consolidation among others and the government should not compromise in fiscal measures.
Economists also suggested use of Socio Economic Caste Census to identify beneficiaries and doing away with the LPG subsidy as it is regressive, the statement said.
“Many suggestions made during the aforesaid meeting with regard to the forthcoming Union Budget 2016-17 include continuing to follow-up the path of fiscal consolidation along with quality spending of the public investment in order to achieve the higher rate of growth,” the finance ministry said in a statement after the meeting. (KNN Bureau)
In this context, Finance Minister has been meeting representatives of every sector, calling for their suggestions for upcoming budget.
On Wednesday, Arun Jaitley met various economists who suggested that the government should consider deviating from the fiscal consolidation roadmap for the next financial year, while retaining the focus on public expenditure.
“We said that there can be some deviation but one has to adhere to fiscal deficit target in the medium term. Some deviation can be there for 2016-17,” Director, Indira Gandhi Institute of Development Research, Mahendra Dev said while addressing the media after the meeting.
Other suggestions from economists included bringing in changes in small savings rate and to focus on increasing private and public investment.
According to the fiscal consolidation roadmap, which was revised last year, the government proposes to reduce fiscal deficit to 3.5 per cent in 2016-17 from 3.9 per cent in the current financial year.
The finance ministry statement quoting Jaitley said that the government continues to adhere to the fiscal consolidation path.
Some of the members suggested that it would be better not to go for an aggressive fiscal consolidation but rather continue on public spending. Other members were of the view that higher growth can be achieved by following the path of fiscal consolidation among others and the government should not compromise in fiscal measures.
Economists also suggested use of Socio Economic Caste Census to identify beneficiaries and doing away with the LPG subsidy as it is regressive, the statement said.
“Many suggestions made during the aforesaid meeting with regard to the forthcoming Union Budget 2016-17 include continuing to follow-up the path of fiscal consolidation along with quality spending of the public investment in order to achieve the higher rate of growth,” the finance ministry said in a statement after the meeting. (KNN Bureau)
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