India Interim Budget 2019-20 - Analysis

On February 01, 2019, the Indian Finance Minister presented an interim Budget for financial year ("FY") 2019-20 ("Budget"). The backdrop of the Budget was the national elections which are slated to take place in the next few months. While a full budget will be announced by the newly elected government later this year, the present interim Budget will help the government machinery to run before the elections. While the Government expects to keep the fiscal deficit to 3.4% of GDP and current account deficit to 2.5% for FY 2019-20, the Budget does not make major tax policy changes. As anticipated, it centered its attention on the domestic rural and agrarian economy, the unorganized sector and low- income salaried citizens.