Economic Survey 2013: Pointers to the Union Budget

Every year, Economic Survey lays out the reforms agenda for the government, some of which finds its way into the budget the next day. This year's Survey, Raghuram Rajan's first, too, flags the policy road map for the government. A few of these:

No higher marginal rates of tax — broaden the tax base to raise tax collections.

Cut subsidies, rationalise expenditure to bring down the fiscal deficit.

Indirect nod to a large number of differently sized banks, to support small and medium enterprises.

Improve ease of doing business, expedite clearances Further relax foreign direct investment regime.

End ‘The Gold Rush’

Global rush for gold as a safe haven assets.

9 times, increase in India’s gold imports in value terms between January 2008 and October 2012.

High inflation has reduced return on financial savings, increasing the allure of gold.

Gold imports need to be curbed to bring current account deficit under control.

What The Budget Could Do

Boost savings, incentive for household financial savings.

Unveil new savings products like inflation-indexed bonds.

Further financial inclusion to give savers access to financial products.

Give a road- map for sugar decontrol.

Sops for private investments in market linkages for farm sector.

Raise import duty on edible oils.

Reduce incidence of tax on Aviation Turbine Fuel.

Allow rebidding in publicprivate partnership projects.