"The economic situation at present is quite challenging", Jaitley said, the PTI reported.
India's economy grew by 4.7 per cent in FY 2013-14, the second straight fiscal year when growth stood below the 5 per cent mark. In Q4 FY 2013-14, the economy grew 4.6 per cent, year on year, compared to the CSO estimate of 4.9 per cent expansion.
Faster reforms would be the key to reversing a deepening economic slowdown.
The union budget next month would be the first litmus test for the new government with India Inc. hoping for tax concessions and big-ticket reforms to revive investment and spur growth.
Industry players want a swift roll-out of the Direct Tax Code (DTC) which is aimed at simplifying India's complex tax structure while the roll-out of the Goods and Services Tax (GST) is expected to boost revenue from indirect taxes.
Other demands include easing of gold imports curbs and lowering of the tax rate to boost investment