Latest News - Among the key expectations from the ensuing Budget are a new fiscal policy framework, corporate tax rationalisation, higher rural capex and focus on efficient social sector spending, says a HSBC report.
According to the global financial services major, the government should continue with its fiscal consolidation in a "practical fashion" and stick to the 3 per cent pre-announced fiscal deficit for 2016-17, but give itself headroom for compensating States for revenue losses once GST is in place.
"In our view, a balancing act would be to stick to the 3 per cent of GDP target for the core fiscal deficit, and, if necessary, use extra headroom of strictly under 0.3 per cent of GDP for compensating States for (Read More)
