Chidambaram may address the issues related to slowdwon in the economy
while some people expeced relaxation in import curbs on gold in view of
the persistent demand from gem and jewellery industry.
NEW DELHI (Commodity Online):
India' Finance Minsiter P Chidambaram's last budget before the term of
the ministry comes to an end is expected to have some populist measures
with an eye on elections but at the same time an uneventful affair as it
is an interim budget to approve expenditure for four months beyond
March 31. Market expects gold import duty to be eased by 2% from the
current 10% in view of success attained in containing current account
deficit (CAD).
Chidambaram will no doubt highlight the achievements of the
government in containing Current Account Deficit and fiscal deficit. The
fiscal deficit is likely to have been fallen to 4.8% of the GDP or
lower by postponing expenditure and advancing income. Huge dividend
payout from public sector companies and windfall from spectrum
allocation is expected to bring some balance to government's financila
position.
Chidambaram may address the issues related to slowdwon in the economy
while some people expeced relaxation in import curbs on gold in view of
the persistent demand from gem and jewellery industry.
Some of the sectors expecting relief are automobilies, mining and agriculture.
All in all, Chidambaram would take this chance to go down the history
as a finance minister who dared to stick to fiscal consolidation ahead
of an election. Only for this reason, he is unlikely to make any
populist announcements, apart from some minor ones like cut in import
tax on gold, according to leading columnist Swaminathan S Anklesaria
Aiyar in Economic Times.
Official figures clearly show that based on his own budget estimates
for 2013-14, the country's fiscal deficit touched phenomenal Rs.5,16,390
crore during April- December, India Today reported.
Some of the
recent pupulist measures could put strain on government finances
including deferment of decision to hike diesel prices. The export
subsidy for sugar announced due to pressure from Agriculture Minsitry is
expected set the national chequer back by around Rs 1400 cr.
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