India’s government on Wednesday unveiled its first budget for the coming financial year.
In the latest move, the government said the government would start the fiscal year in March and the new fiscal year would begin from April 1.
The government’s first budget, which was announced in March, also said it would take up the controversial ‘anti-corruption drive’ and provide an initial public offer for shares in a company.
It also said the country’s banking system would be strengthened and a special fund would be set up for banks to take over troubled assets.
The new budget, announced on Tuesday, did not address the countrys economic woes or inflationary pressures, but it did address some of the key issues.
The budget said it was not ready to release an update on the budget to parliament, though Finance Minister Arun Jaitley said it had been presented to the government and its members.
“The government has already started the process of the new financial year and will finish in March,” Jaitly told reporters.
“I have already told the Finance Minister that we will start the process and we will finish it in March.”
“I would like to reiterate that the government will continue to support banks and the savers of the country,” he added.
“There will be no change in our fiscal plan.
The fiscal year will commence in March.
We have a very clear fiscal plan.”
The government also announced it was going to create a special purpose vehicle for banks in the new year to take on the banks’ distress.
‘The economy is on the verge of collapse’ According to the latest estimates by the Reserve Bank of India, the country is on a fiscal deficit of about $1.5 trillion.
India’s economic output is currently estimated at about $18 trillion.
Jaitly, who is a member of the ruling Bharatiya Janata Party (BJP), said the financial crisis and the debt crisis would be the first to hit the country in 2019.
On Tuesday, Jaitys cabinet secretary for economic affairs, Manoj Singh, said there was no change to the country´s fiscal plan because it would be implemented in March as planned.
(The writer can be reached at siddharth.nawal at indiatimes dot com)