Did not want to spook the markets, nor any section of society with Budget 2013, says Finance Minister P. Chidambaram

Feb 28 2013, 22:15 IST
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Did not want to spook the markets, nor any section of society with Budget 2013, says P. Chidambaram. (Indian Express)				    Did not want to spook the markets, nor any section of society with Budget 2013, says P. Chidambaram. (Indian Express)
SummaryFM says Budget was bereft of any explosive elements as India was not ready for them yet.

is a tricky issue because imports were much above exports. In medium to long term, the only way to contain CAD is to increase exports as imports like oil and food cannot be eliminated.

He said the new fiscal year would be better than 2012-13 in terms of growth, inflation control and investment and cited the optimistic growth figures of over 6 per cent given by Economic Survey and Prime Minister's Economic Advisory Council (PMEAC).

In 2014-15, he said the economy must have to grow beyond 7 per cent once we achieve growth of 6.1 to 6.7 per cent in 2013-14.

On inflation, he said fiscal policy must do its part in containing inflation and hoped that monetary policy authority will also do its part.

Asked about the cut in subsidies, Chidambaram said the Budget figures are credible as fuel subsidy bill is likely to be smaller because we are correction in diesel prices and cap on supply of under-priced cooking gas (LPG) cylinder.

Food and fertiliser subsidy will be last to be transferred through the Direct Benefit Transfer (DBT) scheme, he said.

Highlights:

* Economy is challenged in a number of ways

* Bulk of Rs 13,300 crore gains from direct taxes to come from 10 per cent surcharge on 42,800 super-rich individuals.

* Another set of decisions and measures will be announced in reply to Budget discussion and Finance Bill in Parliament

* Main thrust of Budget is that we are following a fiscally prudent path, fiscal deficit will be contained

* In medium to long term, the only way to contain current account deficit is to increase exports

* FM says fiscal policy must do its part in containing inflation while hoping that monetary policy authority will also do its part.

* I hope FY13-14 will be a better year in terms of growth, inflation control and investment

* Once we achieve growth of 6.1 to 6.7 per cent next year, we should aim at 7 per cent in 2014-15

* Fuel subsidy bill is likely to be smaller because we are correcting diesel prices

* Uncertainty in spectrum auction will be resolved

* Cabinet will take a view on whether to go in for conciliation in the Vodafone tax case

* Food and fertiliser subsidy will be last to be transferred through the Direct Benefit Transfer (DBT) scheme.

* Residual stake sale in non-government companies to give Rs 14,000 crore

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