NDA government elected amidst huge expectations from public

* Present this Budget amidst global uncertainty

* Our govt was elected amidst great expectations

* Mission to bring transformative shift in governance

* Underlying theme of our govt was good governance

* Moved to a system, policy-based administration

* Govt has replaced sluggish growth with high growth

* To take many more steps to ensure growth reaches all

* Massive war against black money has been launched

* Govt moved from blanket entitlement to targeted delivery

* Will ensure fruits of growth reach the vulnerable

* Have moved to policy-based administration

* Economy has weathered external shocks

* India seen as engine of global growth

* India considerably improved policies, econ profile

* India 6th largest mfg country, up from 9th

* GST, demonetisation two “tectonic” changes for economy

* Witnessed historic econ reforms in last one year

* Commodity prices uncertainty a risk for emerging econ fisc

* Increased capacity of banks to lend at cheaper rates

* At an important point in our growth, development path

* At an important point on our path to growth, development

* Pickup in econ premised on policy, econ reforms

* India stands out as a bright spot in global econ scene

* FY18 Budget approach has been to spend more on rural areas

* Focus on maintaining best standards of fiscal prudence

* Surplus liquidity in banking system to boost credit access

* Presenting FY18 Budget early to avoid Vote on Account

* Merger of rail, general Budget a historic step

* Functional autonomy of railways to continue

* Transform, energize, and clean India agenda for next year

* Propose to present Budget under 10 distinct themes

* Focus on removing non-transparent political funding

* To strengthen social security system

* Prudent fiscal management to be one of the 10 themes of FY18 Budget

* To focus on public service, effective governance

* To focus on infrastructure development

 

MACROECONOMY

* India’s macro-economic stability foundation of our success

* India FX reserves comfortable cover for 12 mos of imports

* Govt has pursued path of fiscal consolidation steadily

* FDI 1.45 trln rupees in Apr-Sep

* To have fiscal consolidation without compromising on expenses

* FX reserves to cover 12 months of imports

 

INFLATION

* Expect CPI inflation to remain in RBI’s mandated 2-6% range

* Inflation controlled, high growth replaced sluggish growth

 

DEMONETISATION

* Demonetisation a bold and decisive measure

* Demonetisation seeks to create a new normal

* Demonetisation aims for bigger, cleaner, more real GDP

* Note ban aims to transfer resource from tax evaders to govt

* Econ activity slowdown post demonetisation to be transient

* Tax evasion created an unacceptable parallel economy

* Demonetisation will up GDP growth, tax revenues

* Demonetisation will lead to greater digitization of economy

* Pace of remonetisation has picked up

* Demonetisation, GST to have epoch-making impact on Indians

* Effects of demonetisation won’t spill over to next year

* Remonetisation to soon reach comfortable level

* Banks’ surplus liquidity post note ban to lower borrow cost

* Surplus liquidity in banks to boost credit growth

 

FARM SECTOR

* Will double farm income in 5 years

* Agriculture sector expected to grow at 4.1% in FY17

* Target farm credit at 10 trln rupees FY18

* Will try to take farm loans to remote areas

* Will support NABARD to digitise 63,000 primary agricultural co-ops

* Cost of digitising agriculture co-ops 19 bln rupees in 3 years

* NABARD to get 50 bln rupees to set up micro irrigation fund

* To up crop insurance coverage to 40% FY18 vs 30% now

* To up crop insurance coverage to 50% FY19

* To double long-term irrigation fund corpus to 400 bln rupee

* National agriculture markets to be expanded to 585 markets

* 7.5 mln rupees to each APMC under e-NAM

* To form modern law for contract farming

* Over 3 trln rupees spent on rural programmes every year

 

SOCIAL SECTOR

* To energize youth through education, job creation

* Focus on energizing youth to provide them with jobs

 

EXTERNAL FACTORS

* US Fed stance on rate hike may lead to capital outflows

* US Fed policies are a challenge

* Protectionism may hit export from emerging markets like India

* US Fed’s monetary policy stance may cause lower capital inflow

* Signs of retreat from globalization on rising protectionism

 

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