Budget 2018 may see 3% deficit target postponed for 3rd time: Motilal Oswal

In this preview of the Union Budget 2018-19, Motilal Oswal Securities says there will be limited role of the centre in reviving investment cycle

India’s Union Budget 2018-19 will be presented on 1st February 2018. Expectations and excitement run high as it will be the first post-GST and last full-year budget before the General Elections in 2019.

* We note that the 2018-19 Budget will be presented against the backdrop of uncertainty over tax collections post implementation of the Goods & Services Tax (GST). We expect the government to revise its deficit target to 3.4% of GDP for FY18 (higher than the budgeted estimate of 3.2%) and to 3.2% of GDP for FY19 (higher than the target of 3% set last year). It