FM Needs To Find His Focus

The finance minister needs to reboot an economy stalled by demonetisation when he delivers the combined Union and Railway Budget.

Post the shock of demonetisation, India Inc is hoping that that Budget 2017-18 rejuvenates the economy.

The biggest expectation from Budget 2017-18 is addressing the follow-up of key reforms – such as GST and Demonetisation – that await structural and viable solutions. Palpable outlining of goals, most importantly backed by action plans and accountability, is likely to be the theme for this year’s budget. Further, Union Budget 2017-18 shall be the first budget post independence incorporating Railways as part of it.

One reason we need a booster shot, lies behind numbers. Recent estimates of GDP growth, at 7.1%, are slower than FY16’s 7.6%, yet they do not take into account data for November and December, therefore discounting the demonetisation effect.

Agencies such as the World Bank, International Monetary Fund and rating agencies recast India’s growth numbers lower at 6.1-6.8%, thereby endangering its title of being the fastest-growing, large economies in the world.

While demonetisation was a bitter pill swallowed to oust the malaise of black money, it’s time for the government to take some decisions to some economic momentum, before it’s too late.