With its key economic reform measure – the Constitution Amendment Bill for the Goods and Services Tax yet to be cleared by Parliament – the Centre is working on a Plan B for the Union Budget 2016-17 that would highlight efforts made in other sectors to lift economic growth.

“It is not as if GST is the only reform measure that the government has been working on. There is a lot more that has been done in areas, such as roads, power, banking and agriculture, which will be showcased in the next Budget,” said a senior official familiar with the development.

Reforms such as the discom restructuring scheme (UDAY), bank recapitalisation and the related Indradhanush scheme, improvements in road construction and fiscal consolidation are some of the measures that would be highlighted as the Centre’s key achievements in the forthcoming Budget.

Single market The Modi government has been working to push through the country’s largest indirect tax reform – GST – that aims to transform the economy into a single market and also aid the ambitious ‘Make in India’ programme. The Centre had planned to roll it out from April 1, 2016, but this is unlikely after the Bill was not taken up by the Rajya Sabha in the recently adjourned Winter Session.

With economic growth estimated to be lower than expected this fiscal, at between 7 per cent and 7.5 per cent, and a full recovery uncertain in 2016-17, the Centre is keen on projecting a pro-reform image, especially as it tries to attract more foreign capital and spur economic growth.

The issue is understood to have also been discussed at pre-Budget consultations with different Ministries. A plan of action on this front is likely to be finalised over the next few months.

“Efforts will continue to implement GST over the course of the next year and it will also be one of the highlights of Budget 2016-17, but policies will also be rolled out in other sectors to boost growth,” said the official.

The Centre is expected to list the GST Bill for passage once again in the Budget Session of Parliament, slated to be held in February next year. A number of rating agencies as well as international investors have been eagerly awaiting the roll out of GST, which is expected to add at least 1.4 percentage points to the country’s gross domestic product.

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