The Financial Minister of India, Nirmala Sitharaman will present the Union budget today in both the
houses. Here are some challenges for this year.
GDP/economic growth: IMF recently stated that India’s growth rate is 4.8 this fiscal year. Several
other rating agencies also stated that the growth would be around 4.5-5. This is the sixth
consecutive quarter where our economy has fallen to 4.5
Fiscal Breach: There is set to be a fiscal deficit of 3.3% for the current year. Estimates are made that
deficit could be around 2 trillion Rs which could imbalance government’s income and spending.
Jobs: This year government could not create as many job opportunities as promised earlier.
According to National herald, India is at it’s 45 year high in unemployment. Over 60% of the
graduates/engineers are unemployed. This is one of the biggest challenges to solve during this
How can this Budget help with jobs?
Our finance minister is looking to revive the SME sector (Small and Medium Scale Enterprises). If the
planned revival is successful, we could see a lot of jobs in these enterprises. This could solve the
problem to some extent. Also, government should act as a mediator rather than creator and allow
foreign companies to come and invest in India and set up their bases which will provide jobs to
various individuals. This can be done by exempting certain amount of taxes on the investment
All these things if done properly could reduce the unemployment rate in this young India.
Here’s to a hopeful Union Budget!