ALSO READBudget 2018 might have Rs 740-bn allocation towards fertiliser subsidy Budget 2018: Real estate wants infra status widened beyond affordable homes Budget 2018: New bottoms-up mechanism for farm-gate marketing likely Budget 2018 may waive NOC to streamline transfer of stressed assets Budget 2018: Govt may raise equity investment limit for PF bodies
Needless to say, the much-awaited union budget of 2018 is the crucial one as the current Modi government made two very big financial decisions Demonetization and the implementation of GST (Goods and Sevices Tax) during its tenure. The budget is all set to be announced on February 1 by finance minister Arjun Jaitely. He has already begun the process by announcing the first phase of the budget session of parliament which is expected to conclude on February 9. On January 29, Jaitely has announced the economic survey 2017-18 in the parliament in which he has predicted that India's GDP (Gross Domestic Product) to grow by 7-7.5 percent by 2018-19. But the main point if is it really going to happen? well, we think it's too early to decide?
However, the recent economic survey suggested that India's economy is "picking up quite nicely" and if it continues to remain the same there is great chance that it will expand by 7-7.5 percentage in the coming years. The Economic Survey for 2018-19 estimated a real GDP growth rate of 6.75 percent for the full year in the current fiscal.
Endorsing the pick-up in growth highlighted in the Economic Survey 2017-18, Prime Minister's Economic Advisory Council Chairman (EAC-PM) Bibek Debroy was quoted by a news agency saying the Survey was a reflection of government's commitment to growth and development.
"The real GDP growth rate is likely to be closer to 7.5 percent rather than 7 percent. The Survey was optimistic in its tone because of government's commitment to carry forward structural reforms like Goods and Services Tax, deregulation measures, bank re-capitalization and resolution through the Insolvency and Bankruptcy Code process," said Debroy.
India has one of the fastest growing service sectors in the world with an annual growth rate of 9% since 2001, which contributed to 57% of GDP in 2012–13. However, India's economy slowed to 6.1 percent in the fourth quarter ending March 2017, compared with 7.1% in the previous quarter, following Modi's note ban decision which was extremely criticised by the opposition party and several economists for putting a poke on India’s growth story.
The agricultural sector is the largest employer in India's economy, however, it has failed and contributes to a declining share of its GDP (17% in 2013–14). So keeping in mind about the same the upcoming budget is also expected to hold some extra importance on the agricultural sector.
From expecting some relief in the tax slab to seeking some growth in the rural sector, expectations are really high from Arun Jaitley in hope of some relief, especially for the commoners. So it will be interesting to see if the Modi government will stand straight on people's expectation or not?
Meanwhile, we would like to draw your attention towards some interesting facts about Union budget 2018 which we bet you aren't aware of. So start scrolling:
1. Did you know that until the year 1999, the Union Budget was announced at 5:00 pm on the last working day of the month of February?
2. Did you that a customary 'Halwa ceremony' has also been performed as a part of the Indian tradition of having something sweet before starting an important work?
3. How about this one? did you know that Former Finance Minister Morarji Desai presented the budget ten times, the most by any others?
4. He also became the only finance minister to present the Union budget on his birthday.
5. Did you know that Indira Gandhi, the then Prime Minister of India, took over the Ministry of Finance to become the only woman to hold the post of the Finance Minister?