The Finance Ministry officials will start preparing for the Budget 2014-15 in the next two weeks. The Budget is expected to be tabled in Parliament sometimes in June-July after the nine-phase election for the 16th Lok Sabha gets over on May 16 and a new government assumes office.
The new government is likely to be formed before May-end. The immediate task before the new government will be to formulate the Budget proposals for 2014-15.
Sources said “The Finance Ministry has asked different Central government departments to come up with their final demands and submit their estimates. The Budget preparation would start after two weeks,”
With the economy under stress for long because of the continuing slow-down and other domestic factors the new government will have an onerous task getting the economy on the growth trajectory.
To achieve this, the new government will have to boost investments and spur growth. It will also need to address the supply side constraints to tame runaway inflation which is primarily because of high price of food and essential commodities.
Also to give a fillip to investor confidence the government will need to come up with stringent measures to contain fiscal deficit and prune wasteful expenditure.
Recently, global rating agency Standard & Poor's (S&P) had said the direction and pace of policy reforms of the new government to be formed in May after the completion of ongoing general elections will determine credit rating of India.
At present, rating of India is investment grade 'BBB-‘ with negative outlook.