The much-awaited Union Budget for 2017-18 is expected to bring in some major changes to the tax framework for individuals and corporates following the demonetisation measure, a rating agency said today.

The Indian economy was growing at a healthy pace of 7.6%, when the demonetization drive suddenly slowed down the pace of the economy. Liquidity issues are impacting businesses, especially where the cash transactions were dominant. For Example - FMCG Sector, Automobiles, Real Estate etc.

Demonetization, as it is termed, has become a major election issue in states going to the polls this year, such as Uttar Pradesh, where the performance of Modi's ruling Bharatiya Janata Party could shape his political future.

Arun Jaitley is bringing in much needed structural reforms, but their follow through will present major challenges.

Attributing the slowdown in first quarter GDP to a higher subsidy outgo, the Finance Ministry on Wednesday expressed confidence that economic growth would pick up momentum in the current fiscal to reach close to the 8 per cent mark.

FM Arun Jaitley claims the database of 1.2 billion bank accounts when linked with 900 million mobile phones and a billion Aadhaar numbers would effectively ensure that the subsidy flow only happens to those who actually need it.

This memoir of the author's time as India's chief economic adviser is loaded with lessons in economics and has fascinating stories.

\"Spending on my son's education and medicine for the family has gone up sharply,\" said Sambuddha Banerjee, a 47-year-old IT professional, who works for local government in Kolkata.

Das dubbed it as \"a game-changing phase\" of legislation which will ensure two things - benefit reaches those who deserve subsidies, and leakages and transmission losses are prevented.

The Finance Commission's orders have led to a rise in the states' share of the Centre's revenue from 31 per cent in 2014/15 to 41 per cent in the 2016/17 Budget.

Prime Minister Narendra Modi wants the budget unveiled on Monday to appeal to India's rural poor, officials familiar with his thinking said, in a strategy shift that could boost his ruling party in coming state elections but disappoint investors.

FM Jaitley in his Budget for 2016-17 will on Monday reveal if the credit-positive five-year trend of narrowing budget deficits - from 6.5 per cent of GDP in fiscal 2010 to 4.1 per cent in 2014-15 - will continue.

The spending pressure on Finance Minister Arun Jaitley threatens to worsen imbalances in $2 trillion economy as consumption outpaces investment, undermining Prime Minister Narendra Modi's promise of better jobs for its 1.3 billion people.

Along with Budget cues, next RBI rate cut will also depend on how US Federal Reserve (Fed) moves on US interest rates, said Amisha Vora, Joint Managing Director, Prabhudas Lilladher Group.

A slowing world economy, two consecutive bad monsoons and a political logjam in Parliament, apart from a host of other domestic challenges, have created a challenge of greater proportions for Finance Minister Arun Jaitley.

What is worrying is that this unexpected boost has not produced any buoyancy in the economy. Alongside declining exports, domestic demand also remains low, undermining corporate appetite for investment.

The Washington-based Fund marginally lowered India's growth forecast to 7.3 percent this year, from its earlier estimate of 7.5 per cent, and said that a faster-than-expected deceleration in inflation provides leeway for modest cuts in interest rates.

The previous Congress-led government approved the National Food Security Act (NFSA) in August 2013. The country's 29 states and seven union territories had to implement it within a year.

Under the programme, each family will get a monthly subsidy of about Rs 500-700, which would be linked to a state-set procurement price of grains.

What is a bit more worrying, though manageable, is the rise in the import bill. India imported crude oil worth $138 billion in 2014/15. If this figure rises, trade and current account deficits will widen, pressuring the rupee.