Arun Jaitley's litmus test: Budget must take care of current account deficit

New Delhi: Some of the few urgent matters which need to be addressed in the first Budget when finance minister Arun Jaitley unveils it in the Lok Sabha in early July include keeping fiscal deficit under a reasonable limit, reducing the current account deficit, measures to deal with the anticipated bad monsoon, creating a friendly environment to attract FDI and strengthening public sector banks.

However, on the people-centric programmes front, there are indications that the finance ministry is working out elaborate plans for to unveil low-cost housing in the Budget.

Sources said, “Mechanisms are being worked out to give interest subvention and other incentives for building low-cost houses. Even Indira Awas Yojna for rural housing is expected to get an extra boost.”

Mr Jaitley is expected to make a major announcement in the Budget for the middle class, which did not get any relief on personal income-tax in the last three budgets of the UPA government led by Dr Manmohan Singh.

To generate sustainable quality jobs in the market, the Budget is going to put major emphasis on skill development and vocational education. Since manufacturing is the second-largest job creator in
the country after agriculture, the finance minister is likely to unveil a robust policy to propel growth both in terms of production and employment generation.