Published on 4/02/2017 5:04:37 PM | Source: Morningstar Investment Adviser India Pvt Ltd

Union Budget 2017-18 - Growth Impetus With Fiscal Prudence - Morningstar Investment

FY 2018 fiscal deficit target at 3.2%, target of 3% set for FY 2019. Nominal GDP growth assumed at 11.75%


* The expectation of increased tax collection on account of demonetization and a bounce back in the economy on the back of pent up consumption demand is expected to spur tax collection in 2017-18

* Revenue expenditure in FY 2017-18 stands at Rs.18.37 tn, increase of 5.9% over the RE FY 2016-17


Non tax revenue expected to contract in FY 2017-18 by 13.7% with 43.7% fall in telecom revenue on account of no spectrum auction


* In RE 2016-17, indirect taxes are estimated at Rs.8.51 tn which is Rs.0.72 tn more than the BE. Direct tax collections are estimated at Rs.8.47 tn at budgeted level on expectations of better compliance on individual income tax

* Non-debt capital receipts expected to grow 49.3% on account of disinvestment in PSUs (Rs.72,500 crore) and listing of insurance companies. This seems optimistic given the disinvestment track record


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