Union Budget 2013: Chidambaram keeps tight rein on finances

NEW DELHI: The government is betting on reining subsidies and efficient expenditure management to meet its fiscal goals. As expected, finance minister P Chidambaram said the fiscal deficit would at 5.2% of gross domestic product for 2012-13, a shade lower than the estimated 5.3%.
He pegged the fiscal deficit for 2013-14 at 4.8% of GDP.
Analysts, however, doubted the contours of the plan.“Fiscal consolidation in the year starting April is mainly through steps to boost revenues, some of which are temporary. The draft Goods and Services Tax (GST) bill also remains in under negotiation,” ratings agency S&P said.
“We, therefore, believe the budget would be vulnerable to economic conditions in the next fiscal year. The outcome will be important in judging the commitment of the administration to medium-term fiscal consolidation,” S&P said.
Union Budget 2013
Budget news 2013 ​
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