Jaitley begins Budget 2017 Speech, says demonetisation will improve GDP

Beginning his speech, Jaitley said India stands out as a bright spot in the global uncertainty and double digit inflation has been controlled.

He said demonetisation measure taken was a bold one and it seeks to create a new normal where GDP will be improved and curb terror funding.

He said it will reduce corruption in the long run and lead to greater formalisation of the economy. He said it will affect the tax evaders.

He said the budget aims to spend more in rural sectors and keep the economic reforms going.

The budget  assumes significance as it will be the first one since the Union government's demonetisation move banning  old Rs 1000 and Rs. 500 currency notes to curb black money menace.

The Economic Survey presented ahead of the budget said demonetisation has hit India’s growth by 0.25-0.5% of GDP, but will yield a fiscal “windfall”. 

The Indian economy has sustained a macro-economic environment of relatively lower inflation, fiscal discipline and moderate current account deficit coupled with broadly stable rupee-dollar exchange rate despite continuing global sluggishness, said Union Minister Arun Jaitley in the Parliament on Tuesday.

As per the advance estimates released by the Central Statistics Office, the growth rate of GDP at constant market prices for the year 2016-17 is placed at 7.1 per cent, as against 7.6 per cent in 2015-16.This estimate is based mainly on information for the first seven to eight months of the financial year.