Finance Minister is expected to provide guidelines for the introduction of the direct and indirect tax reforms i.e. the direct tax code (DTC) and the Goods & Services Tax (GST).

FM may increase excise duties to decrease the fiscal stimulus measures and may raise the service tax also from 10%. We expect FM to project a lower fiscal deficit for coming financial year on account of higher revenue projections. Another prime focus would be on reforms to reduce the subsidy burden by decontrolling the petrol and diesel prices and price rise on kerosene and LPG cylinder.

Among the financial sector reforms, issue of raising the FDI cap in private sector insurance companies from 26% to 49% is expected to remain on top. We expect that focus area for expenditure would remain the same i.e. agriculture, water, infrastructure, rural and social schemes and power.