Union Finance Minister Arun Jaitley will present the fifth and final budget for the Narendra Modi government tomorrow.
Union Finance Minister Arun Jaitley will present the fifth and final budget for the Narendra Modi government tomorrow.
And as the Finance Minister is getting ready for the big show, experts believe that considering the fact that Indian economy has recently got back on track from the slowdown and 2019 polls are ahead of the government, the Budget 2018 will be a tightrope walk for the finance minister Arun Jaitley.
Below is the list of top 5 challenges which according to the analysts the Finance Minister will face.
1. Demometisation and GST
Union Budget 2018 will be the first budget that will be tabled after the demonetisation drive and the rollong out of the Goods and Services Tax(GST) bill.
It is to be noted that the impact of these two reforms will ease out in coming quarters, experts want Finance Minsiter to work on improving purchasing power and creating additional demand.
2. Worrisome statistics
According to the advance statistics that released earlier this month, India’s economic growth will be at 6.5%, this is worisome for the Modi-led government. As it has been the lowest growth rate during the Modi government.
However, FICCI has said that despite the global slowdown, FICCI says, India managed to exhibited resilience. It also suggested that the Income Tax rate should also be eased out at 30 per cent.
3. Agricultural sector
According to the government data, the agricultural sector is expected to growth only at 2.1 per cent.
Farmers already protesting across the country, and then this rural distress can pose a major threat to the government.
The agricultural sector registered slow growth rate despite normal monsoon for two consecutive years. The weather experts cannot guarantee such favourable season for Modi government in third year in succession.
4. Oil Prices
Rising oil prices can also be worrisome for the government. Even CEA Arvind Subramanian has said in the Economic Survey 2018, that rising oil prices are cause of concern.
Rally in oil prices can elevate stock prices provoking a “sudden stall” in capital flows.
5. Unemployment
Finding good jobs for the young and burgeoning workforce, especially for women is one of the factor that should be taken care of, according to the Economic Survey 2018.
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 "Top 5 challenges FM Arun Jaitley will face before presenting Union Budget 2018")
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