India's GDP growth will drop to a 4-year low of 6.5 per cent in 2017-18, according to CSO's advanced estimates. Poor GST collections and lower-than-expected GDP would certainly lead to slippage in fiscal deficit. We are likely to end the year with a fiscal deficit of around 3.4 per cent.Yet another area of concern is the rising crude, which is impacting the fiscal deficit, current account deficit (CAD) and inflation. Excise duty cut in the Budget would be a popular move and doable since petroleum is outside GST.The focus of the 2018 Budget would be agri-rural sector. Aggressive bulk buying should be avoided.In brief, the emerging economic and political scenario offers an opportunity to the government to be popular without turning populist.

Source: Economic Times January 30, 2018 15:22 UTC