Union Budget 2018-19: In Charts
Finance Minister Arun Jaitley, in his fourth full Union Budget, introduced a slew of measures aimed at improving the farm and rural economy, continued the infrastructure push, announced a mega national healthcare scheme and brought back a tax on long-term gains from equities. He also confirmed that India will slip from its fiscal consolidation path as it now expects to breach the fiscal deficit target of 2017-18.
The economy is expected to benefit from the uptick in global economic growth which may provide a fillip to exports, said the macroeconomic statement accompanying the budget. Increasing oil and commodity prices may put some pressure though.
The economy is expected to see a nominal growth of 11.5 percent in 2018-19, from 9.5 percent in the year before.
There are signs of revival of investment activity in the economy and the recent pick-up in the growth of fixed investment can be expected to maintain momentum in the coming year.Macroeconomic Framework Statement
Here are the key charts from the Union Budget for 2018-19:
Slipping Fiscal Prudence
Jaitley said India will end 2017-18 with a fiscal deficit of around 3.5 percent of the gross domestic product, compared with the targeted 3.2 percent. Which means, the 3 percent deficit target, which the N..Singh Committee had recommended to be achieved by 2019, will get further delayed.
Transport Allocation Spikes
Among the major heads of expenditure, the transportation sector has seen the most significant spike in budgetary allocation to Rs 1.34 lakh crore from Rs 1.07 lakh crore earlier. The second highest increase was in allocation for the agricultural and allied sector.
Slightly Higher Borrowings
The government plans to borrow Rs 6.06 lakh crore in 2018-19, slightly higher than the estimated Rs 6 lakh crore in the current fiscal.
Higher Tax Revenue
Net tax collections for the government are seen rising 2018-19 by 16.5 percent over the current fiscal. The share of non-tax revenue in the government's earnings too is expected grow, after declining slightly this year. The non-debt capital receipts, however, are expected to be lower.
Interest payments for debt contribute the highest to the government's expenditure. This is followed by defence, subsidies and pension payments.