Build up to Budget 2014-15: Will it rain on economic revival?

Thu Jun 26 2014, 17:43 hrs
Build-up to Budget 2014-15: Less than a month in office, the government is getting taste of the magnitude of the challenges it faces. (Photo: Reuters)
Build-up to Budget 2014-15: Less than a month in office, the government is getting taste of the magnitude of the challenges it faces. (Photo: Reuters)
A major push to reviving growth would come from the agricultural sector and given the threat of sub-normal monsoon, the government would have to re-calibrate its proposed measures.
A major push to reviving growth would come from the agricultural sector and given the threat of sub-normal monsoon, the government would have to re-calibrate its proposed measures.
The Indian Meteorological Department (IMD) expects below-normal monsoon at 95% of long period average (LPA). The probability of El Nino is 60%, the IMD says. (Photo: AP)
The Indian Meteorological Department (IMD) expects below-normal monsoon at 95% of long period average (LPA). The probability of El Nino is 60%, the IMD says. (Photo: AP)
Below-normal monsoon is set to put upward pressure on the already high food prices. Inflation rose 6.01% in May. Contingency measures include more import of pulses, oilseeds and rice.
Below-normal monsoon is set to put upward pressure on the already high food prices. Inflation rose 6.01% in May. Contingency measures include more import of pulses, oilseeds and rice.
A high inflation will make it difficult for the RBI to cut rates, a key demand by industry. To enable industrial growth, the Budget may also focus on measures including:
* Reducing excise duty on automobiles
* Cutting corporate tax rate
A high inflation will make it difficult for the RBI to cut rates, a key demand by industry. To enable industrial growth, the Budget may also focus on measures including:

* Reducing excise duty on automobiles

* Cutting corporate tax rate

Drought will make it difficult to go ahead with diesel decontrol. There is a possibility that fuel subsidy may go up.
Drought will make it difficult to go ahead with diesel decontrol. There is a possibility that fuel subsidy may go up.
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