Tuesday, February 26, 2013

Budget 2013 to boost investor confidence

Yes, it is a poll-year Union budget and P. Chidambaram is all geared up to prop up investor confidence by implementing measures rather than on pre-election spending, recommending his cabinet colleagues to maintain austerity. Stressing on the fact that wasteful expenditure may further downgrade rating of Indian economy to ‘junk’ besides setting off an economic meltdown, the finance minister advocated tackling the bloated fiscal deficit as priority, pointing out that India is on the right track.

Chidambaram’s recent road show has been an attempt to attract in-flow of foreign funds. Only tax revenues cannot be relied upon to meet the growth objectives. Other areas which are expected to be given priorities in the Union Budget are avoiding unnerving investors, slashing public spending, ensuring efficient tax collection, and more.

Few cabinet colleagues are against Chidambaram’s cuts on welfare spending. But if spending is not cut, the fiscal deficit would be further hit; glaring example is Delhi missing its fiscal deficit target due to over-spending on social welfare and subsidies.

The above post on India Budget 2013, You can read the complete article here -


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