Vote on Account 2014: FY14 GDP growth rate seen at 4.9%

NEW DELHI: Finance Minister P Chidambaram in his Vote on Account 201 speech said that the economic growth for the current financial year is seen at 4.9%. The FM said that GDP growth in Q3 and Q4 will be 5.2%.

Amidst disruptions over the Telangana issue, Finance Minister P Chidambaram on Monday presented his Vote on Account speech, pegging the exports growth at $326 billion, up 6.4% in FY14.

Chidambaram said that fiscal deficit for 2013-14 will be contained at 4.6%. "Our objectives were fiscal consolidation, reviving growth cycle and enhancing manufacturing," said FM.

Chidambaram said that his government has been successfully able to avoid a downgrade of India's credit ratings.

"India is not facing a ratings downgrade from agencies. Our objectives were fiscal consolidation, price stability. Rating agencies have acknowledged our efforts," he said.

Amidst disruptions over the Telangana issue, Chidambaram began his speech by saying, "I shall give you an account of how we navigated the turbulent waters of the Indian economy." "India's economy was able to "outperform other Emerging markets," he said.

The budget comes in the backdrop where, growth has come crashing down, the UPA has been hammered by scam after scam and is now staring at a major defeat in the coming elections.

Essentially a vote on accounts supposed to be nothing but a caretaker budget, which keeps the daily government ticking over till the elections are over and a transition of power happens. And the vote to pass the budget is a formality. An FM presents only proposals for expenditure, and that too for the next few months till a new government takes over and presents a bigger, full-fledged budget.