Moneycontrol
Feb 18, 2016 02:48 PM IST | Source: Moneycontrol.com

Budget 2016: Higher spends seen on OROP, 7th pay commission, investment

The FM's priority in the 2016-17 Budget will be higher growth, with fiscal rectitude, we believe. With the private sector capex yet to pick up, he will Budget for higher plan capital expenditure (investments), in addition to the higher spends on OROP and CPC, which need to be factored in.

The Finance Minister, Arun Jaitley, will present the 2016-17 Budget
amid a weak global setup and an anemic domestic recovery. The
consumption stimulus (OROP and 7th Pay Commission) and investment
stimulus (with private sector capex is yet to recover) are expected to
result in higher spends.

Thus, the FM will have to be resourceful enough to meet the FD targets. We look for an 'Achievable' and 'Sustainable' Budget; one of the pre-requisites for further monetary policy easing by RBI.

The FM's priority in the 2016-17 Budget will be higher growth, with fiscal
rectitude, we believe. With the private sector capex yet to pick up, he
will Budget for higher plan capital expenditure (investments), in addition
to the higher spends on OROP and CPC, which need to be factored in.
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