Budget 2017-18
Budget is a socio economic document which is gien under Art 112 of Constitution. The budget is prepared by the budget division in department of economic affairs, Ministry of Finance. Budget making itself is not a one day issue, it passes through various stages. In total Budget goes through following processes. First to come up is Formulation of Budget, then budget would be approved by the legislature, finally the execution and auditing of the Budget ammount takes place. Process of budget making itself takes more than six months. The five year plans are referred to discuss the gross budgetary support from the union government to support the annual plans. The real test of the budget maker is to pass the legislation which fiscally disciplines the government. The fiscal responsibility and Budget management (FRBM) act sets the target of keeping the revenue deficit nil and fiscal deficit below 3%. The process of budget takes final shape in around month of January when the revenue. By convention the union budget is presented on the last day of February in the Lok Sabha. The budget is tabled at the Rajya Sabha only after the finance minister completes its speech in the Lok Sabha. A broad discussion takes place at this stage without any voting. Then the house is adjourned.
Budget continued the path setup in last budget of improving the fiscal discipline and making legislative and tax reforms. This was the first budget presented after the reforms introduced in the budget process. This was the first time when budget was presented on end of Jan month so that it gives ministries full financial year. Also this year budget incuded railway budget in itself and a single budget was presented. Another reform which was introduced this year is merger of plan and non plan expenditure. However government has nicely maintained its fiscal discipline. Along with rural economy government's focus on improving the infrastructure of the country has continued from last year's budget.
Important points of budget are given below :
Inflation brought under control. CPI-based inflation declined from 6% in July 2016 to 3.4% in December, 2016
Economy has moved on a high growth path. India's Current Account Deficit declined from about 1% of GDP last year to 0.3% of GDP in the first half of 2016-17. FDI grew 36% in H1 2016-17 over H1 2015-16, despite 5% reduction in global FDI inflows. Foreign exchange reserves have reached 361 billion US Dollars as on 20th January, 2017
