The govt will stick to the fiscal consolidation roadmap targets in the upcoming budget due to the risk of RBI shifting its stance to hiking rate, Deutsche Bank said.
The proposals before the ministry is to hike the tax exemption limit from the existing Rs 2.5 lakh per annum to at least Rs 3 lakh if not 5 lakh, they said.
Assocham urged the government to provide interest equalisation of three per cent in respect of yarn exports in the budget for 2018-19.
The government will likely increase funding for the farm and rural sectors in the budget for the coming fiscal year, finance ministry officials said.
"...I think the govt will present a responsible budget, which will reflect its expenditure quality and commitments," Roy said.