The Union Budget

The Budget, simply put, is the Government telling citizens how much money it expects and how much it intends to spend over the financial year. But in that lies the story of whether it is frugal or profligate, willing to listen to sound economics or set to irresponsibly spend what it doesn’t have to woo voters.

The last two budgets have seen the Government offering incentives to businesses to boost investment and economic growth. For the year 2016-17, the Centre is expected to focus on agriculture and social welfare benefits. The Budget may also detail measures to support ongoing programmes such as Start-Up India, Make in India, Digital India and the Skill Development Mission. It is also likely to make provisions for One Rank One Pension (OROP) and the Seventh Pay Commission recommendations.

The common taxpayer could get some relief if the Government raises the minimum income threshold for paying personal income tax. While exemptions for senior citizens are also expected to be introduced, it is likely that the threshold for higher slabs will not be raised. Market observers will be watching for signs of its commitment to the Fiscal Responsibility and Budget Management Act. Under this, the fiscal deficit needs to be reduced to 3 per cent of GDP over successive years.

The Union Budget is to be presented by Finance Minister Arun Jaitley on 29 February, six days after the Budget Session of Parliament began. The Economic Survey, which outlines the economy’s performance, will be released on 26 February. While Morarji Desai is the country’s only Finance Minister to have presented the Budget 10 times, this will be the third Budget presented by the Narendra Modi Government that was elected to power in May 2014.

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