India may unveil bolder economic reforms, but no tax changes in budget.
India will probably unveil bold reforms in its budget on Thursday in a bid to turn around an economy growing at the decade lows, but as per official reports major changes to taxes will be absent. Finance minister Arun Jaitley will present his maiden budget after his Bharatiya Janata Party, led by Prime Minister Narendra Modi, won a landslide victory in May to form the first majority Government in three decades.
Seventeen of 24 economists surveyed between July 3-7 expect the 2014/15 budget to live up to those expectations, eventhough the government is likely to give some details on implementation on GST. It is already running at close to half the annual goal of 4.1 percent inherited from the previous government almost three months into the budget year. That will likely lead to higher borrow of 6 trillion rupees, 30 billion rupees more than the current target.
The tax reform plans , which include a goods and service tax added by him will not be implemented for a while.For many years Indian budget have been the common place for increased spending for social welfare and other benefits.Already decontrolled petrol price tied to international market rates for crude oil, prices of cooking gas and diesel are still balanced by the government.Finance minister Jaitley is also expected to cash in on soaring stock markets and sell government stakes in major public companies to raise funds and bridge the gap between revenues and expenditure.