Budget 2018 LIVE: Will Arun Jaitley ease tax rates amid fiscal challenges?

The annual Union Budget 2018-2019 will be tabled by Arun Jaitley on Thursday. Follow Business Standard for LIVE updates

10:09 PM

The target Jaitley had previously set out was to lower the fiscal deficit to 3.2% of the GDP in the current financial year and to 3% in 2018-19, the Budget for which he would present in the Lok Sabha tomorrow.

 

10:05 PM

Jaitley has to stick to the roadmap of narrowing one of Asia's largest budget deficits, as failing which, India may fall on the wrong side of global investors and credit rating agencies which had late last year handed out a rare sovereign upgrade.

9:56 PM

Scrapping the colonial-era tradition of presenting the Budget at the end of February, Jaitley had for the first time presented the annual accounts on February 1 last year.

The Budget presentation was advanced by a month to ensure that proposals take effect from April 1, the beginning of the new financial year.

9:52 PM

In the first eight months of 2017-18, fiscal deficit reached 112% of the target, stoking fears of a fiscal slippage. The shortfall was largely due to reduced dividends from government companies, which the government looks to bridge through stake sale in state-owned firms like HPCL.

9:50 PM

Chief Economic Adviser Arvind Subramanian earlier this week stating that a pause in the fiscal consolidation plan can't be ruled out while Niti Aayog Vice-Chairman Rajiv Kumar saying the government is likely to stick to the target.

9:48 PM

Some kind of incentives to boost exports of certain sectors may be announced while there may be announcements for start-ups as well as for promoting entrepreneurship.

9:44 PM

Ahead of Budget 2018 mixed performance for rail-related stocks
 

Analysts suggest one needs to be selective and pick only those stocks where there is earnings visibility and on-ground execution of projects

9:42 PM

Also constraining Jaitley would be the rise in global oil prices, which can stoke inflation as well as widen current account deficit.

9:41 PM

There are talks that tax break on capital gains from stock investments may go and it remains to be seen if Jaitley will finally show some movement on his 2015 promise to lower corporate tax rate to 25% from 30% over four years.

9:37 PM

Also on Jaitley's menu may be upping spending on infrastructure projects like highways and modernisation of railways to boost economic growth that is at a four-year low.

9:37 PM

There is also an expectation that common man may get some relief in income tax by way of an increase in the exemption limit.

9:35 PM

With the recent elections in Gujarat indicating erosion of BJP's rural vote base, Jaitley may also unveil incentives for the farm sector.

9:34 PM

The Budget may see new rural schemes and step up of funding towards existing programmes like MNREGA, rural housing, irrigation projects and crop insurance.

9:28 PM

Budget 2018: From rural focus to corporation tax, click here to read the mutual fund industry expectations

9:20 PM

Slamming the Centre a day ahead of the Union budget, West Bengal Chief Minister Mamata Banerjee said that devolution of central funds to the states had been deferred from the first day to the middle of the month.