While the government is busy advancing the Budget dates, economists and businessmen have some advise for North Block on priorities for the Budget.
At the India Economic Update session in the India Economic Summit, Gita Gopinath, professor of economics in Harvard University, said that the Budget should focus on fiscal discipline.
The Centre's commitment to fully compensate states for loss due to the switch over to the goods and services tax, targeted to be rolled out from April 1, 2017, is a risk that it has taken and it should ensure that fiscal consolidation is not disturbed because of this, she said.
Read our full coverage on Union Budget 2016
Read our full coverage of the India Economic Summit: No reason for RBI to hold back 25 bps cut over developments in US: Gita Gopinath
Read our full coverage on Union Budget 2016
Read our full coverage of the India Economic Summit: No reason for RBI to hold back 25 bps cut over developments in US: Gita Gopinath
She wished that the Budget should not bring surprises on taxes such as retrospective amendment to the Income Tax Act, brought in a few years back.
Pawan Munjal, chairman, managing director and chief executive officer with Hero MotoCorp, said that he would like to see a road-map for 5-10 years in terms of Budget priorities.
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Read our full coverage of the India Economic Summit: New technology must be mindful of environment, jobs, says Suresh Prabhu
When asked whether India is on a downward trajectory as far as interest rates and inflation are concerned, in the wake of Tuesday's decision by the Reserve Bank of India (RBI) to cut the policy rate, Gopinath said that it is not guaranteed. Commodity prices may move up, she added.
Confederation of Indian Industry President Naushad Forbes said that the RBI's move was in continuation of the central bank's policies for the last two years.
He said that the country is in a transition to low inflation and low interest rates.
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Vineet Nayyar, vice-chairman, Tech Mahindra, said that interest rates are too high for capial formation. "At 10-11 per cent interest rates, where would capital formation come from?" he asked.
