Arun Jaitley’s team forecasts a recovery in nominal GDP growth, the key driver of tax revenues, to around 12% in 2017-18. Yet officials say that, given the choice, they would choose growth sustained by state investment over a fiscal straitjacket. Heroic assumptionsJaitley’s team forecasts a recovery in nominal GDP growth, the key driver of tax revenues, to around 12% in 2017-18. Finance ministry officials remain tight-lipped about how quickly they expect growth to bounce back after it slowed following so-called demonetisation. “It will not be a populist, but a pragmatic budget,” said a senior finance ministry official with direct knowledge of budget planning.

Source: Mint January 26, 2017 03:28 UTC