Checklist : What to expect from the budget

As Budget day inches closer, market and economy watchers are keeping their fingers crossed for some big-bang reform announcements.

Here’s what Rajiv Kumar, secretary general of industry body Ficcci, had to say after he and a group of economists met the government to discuss what to expect from the forthcoming budget proposals, expected to be tabled in Parliament on 15 March.

“I think the overall theme would be fiscal consolidation as the finance minister is aware of the rise in fiscal deficit and the impact it is having on both on managing inflation and on investors expectations,” he said.

Fiscal deficit is a growing problem for India and most experts believe the government will overshoot its 4.6 percent target by a wide margin. Already, the fiscal gap between April and December is 92 percent of what was targeted for the whole year.

M Govind Rao, economic advisor to the prime minister, said India’s fiscal deficit is likely to be 1 percentage point higher than 4.6 percent.

Apart from fiscal consolidation, there will also be a focus on restoring investor confidence and the India growth story. Many economists have pointed out that while consumption has held up despite high interest rates and a sluggish economy, investments have slumped.

Watch the CNBC TV-18 video below -