Divestment to go on: FM
More pointers to the Budget: Investment climate may become more friendly. Left or no Left, rest assured that disinvestment of minority stakes will take place and overseas investors can breathe easy on investing through participatory notes.
By TNN |
BANGALORE: More pointers to the Budget: Investment climate may become more friendly. Left or no Left, rest assured that disinvestment of minority stakes will take place and overseas investors can breathe easy on investing through participatory notes.
Also, there may be no shocks on inflation or on petroleum prices.
The government intends to keep both on a tight leash. Subsidies on cooking fuel will continue , at least in the near term. A decision on foodgrain subsidy will be taken after discussions with all political parties.
That���s some of the highlights from FM transmission ��� that is, Mr Chidambaram���s interaction with financial writers today providing a peek preview of the Budget. The hour-long Q&A session laid out broad contours of the Budget.
On the macro front, the finance minister said that both fiscal and revenue deficit was on course to meet budget estimates and he may be getting on with the targets for reduction required by the Fiscal Responsibility and Budget Management Act (FRBM Act) in the next fiscal .
Fiscal deficit for the year could end at 4.3% of the GDP and revenue deficit at 2.7%. That would mean fiscal deficit target for next year would be cut by 0.3% to 4% and revenue deficit by 0.5% to 2.2%.
The best news: the economy could perform as well next year as it has this past year.
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