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:
http://in.reuters.com/article/2013/02/28/india-union-budget2013-breakingviews-idINDEE91R09L20130228?type=economicNews

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 -

http://in.reuters.com/article/2013/02/26/india-budget-chidambaram-populist-electi-idINDEE91O0KJ20130226