It is anti corruption and wants to improve the lives of all its citizens. But it also understands it will require to do different things for different segments and is committed to this happening steadily through a period of time,” Sud told IANS.
Analysts said the government is likely to announce a definitive road map for implementating the much delayed indirect tax reform, Goods and Services Tax (GST), that will set the tone of economic reforms.
According to a survey conducted by industry body FICCI, India Inc. expects the Budget to be pro-growth giving due focus on ironing out issues faced by the industry and investors.
Doing away with retrospective taxation and implementing Goods and Services Tax (GST) and Direct Taxes Code (DTC) as soon as possible are high on the wish list of most in the corporate world.
Jaitley is also likely to announce a price stabilisation fund, as promised in the Bharatiya Janata Party's (BJP) election manifesto, as well as incentives to boost affordable housing.
President and chief executive officer of GE South Asia Banmali Agrawala said efforts should be made to address the problem of inflation through easing supply side bottlenecks, instead of focusing just on demand side and increasing interest rates.
Agrawala also suggested the need for “exercising fiscal prudence, controlling subsidies and creating room to fund increased government spending in building infrastructure”.
The budget comes at a time when the country is passing through a very difficult macro-economic situation. The economy is suffering from its worst slowdown in three decades, inflation remains stubbornly high and the fiscal situation fragile.
Jaitley is widely expected to revise fiscal deficit target upward from 4.1 percent of the GDP, as set by his predecessor P. Chidambaram.
In the fist two months of 2014-15, fiscal deficit, which is a measure of the government's spending beyond its means, hit 45.6 percent of the budgeted amount for the entire year. A sharp jump in oil prices in international markets due to Iraq unrest will put further pressure on subsidies bills.
The finance minister is likely to keep a higher target of revenue from asset sales that would help bridge financing gap.
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