Thursday, February 28, 2013

Chidambaram’s boldness well exhibited in Union Budget 2013

Yes, P. Chidambaram did live up to the country’s expectations, as exhibited by his Budget 2013. Problems facing India at the time when he held the finance minister’s portfolio were slow economic growth, downgrade credit rating, growth, high fiscal deficit, high interest rates, stubborn inflation, high budget, and insufficient investment. Union Budget 2013 explicitly focuses on these setbacks; Chidamabaram is resisting fiscal suicide!

Union Budget 2013 Show Ups
·        Limit to govt spending
·        No big expansion in subsidies
·        Limit govt net borrowings to 4.84 trillion rupees
·        Ending of the arresting of household financial savings
·        Levy of 10 percent surcharge for rich taxpayers
·        Focus on in-flow of foreign funds
·        Hopes of 19 percent increase in tax collections next year.

Fiscal consolidation measures of the Union Budget 2013 should certainly improve the nation's overall financial savings. But investors of the stock market are disappointed on the cuts in govt. spending. Thanks to Chidambaram’s tough and bold decision. It is now to wait and watch the implementation and outcomes of Budget 2013!

The above post is based on the expert opinion of Andy Mukherjee. You can read the complete article here:

1 comment:

  1. Hi Shweta,

    My take on budget....