Budget 2013 Factbox: Expectations from P. Chidambaram
Chidambaram is expected to push fiscal consolidation through spending cuts while looking to increase revenues to ward off the threat of a credit rating downgrade.
Following are expectations from economists, analysts, investors and companies from the budget.
* Government target seen at 4.8 percent of gross domestic product for 2013/14
* Government has revised 2012/13 target to 5.3 percent of gross domestic product, compared with 5.1 percent estimated in the budget in March.
* Government's GDP growth forecast for 2013/14 seen at 6 to 6.5 percent, compared with a decade-low of 5 percent in 2012/13 according to estimates released by the ministry of statistics. The finance minister has said the economy should expand 5.5 percent in 2012/13.
* Analysts expect net government borrowing below 5 trillion rupees ($92.4 billion) in FY14, little changed from 4.67 trillion rupees in FY13
* Total subsidy burden seen falling by 400 billion-500 billion rupees from estimated 2.6 trillion rupees in FY13
* Ratio of subsidy payments to GDP seen below 2 percent by the end of 2013/14, compared with preliminary expectations of about 2.5 percent in 2012/13
* FY14 food subsidy bill seen between 850 billion and 1 trillion rupees versus 750 billion rupees budget estimates for current year
* Likely to cut fertiliser subsidy by at least 15 percent for 2013/14
* Finance minister plans to cut FY14 public spending target by up to 10 percent from FY13's original target
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