Don't expect major announcements in Interim Budget

Feb 16 2014, 13:22 IST
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SummaryFinance Minister P Chidambaram may dole out some sops while doing a tightrope walk to keep the fiscal deficit under check when he presents the interim budget for 2014-15 in Parliament tomorrow ahead of the Lok Sabha elections.

code (DTC) are not likely to be taken up by the outgoing UPA government for want of political consensus.

In an election year, governments have traditionally presented an interim budget or vote-on-account, a shorter version of the budget.

The government, sources said, will come out with revised estimates for tax collection in 2013-14 and projections for the next financial year.

As per current indications, the fiscal deficit this financial year is expected to be less than 4.8 per cent of GDP estimated in the budget, mainly on account of expenditure compression and higher realisation from the 2G spectrum auction.

The fiscal consolidation road map requires the government to contain the fiscal deficit at 4.2 per cent of GDP in 2014-15.

Chidambaram had on several occasions said he had drawn a red line for the fiscal deficit and it would not be breached. The gap could be 4.6-4.7 per cent of GDP.

The CAD, which was a major concern last year, is likely to narrow to below USD 50 billion, or 2.5 per cent of GDP. It had touched a record high of USD 88.2 billion, or 4.8 per cent of GDP, in 2012-13.

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