India's fiscal deficit may be less than the provisional figure of 5.2 per cent of the gross domestic product for the 2012-13 fiscal year that ends on March 31, Finance Minister P. Chidambaram said on Monday.
Mr. Chidambaram had said in his Budget speech last Thursday that 2012-13 fiscal deficit is seen lower at 5.2 per cent of GDP, compared with his earlier estimates of 5.3 per cent.
The Finance Minister was addressing a conference of industry association, that was attended by Finance Secretary R. S. Gujral, FICCI president Naina Lal Kidwai and CII president Adi Godrej, among others.
Here are the highlights:
P. Chidambaram:
- Budget-making not a one-step exercise
- Look at Budget in terms of what the objectives were
- Objective was to signal that we are on the path of fiscal consolidation
- Budget speech not made to a particular section of people or sector
- There are a number of decisions which are in the making that will be announced in Parliament during the debate and passing of the Finance Bill
- Nothing was more important than fiscal consolidation
- There would have been severe consequences if fiscal consolidation was not focused on
- Fiscal deficit number could actually be slightly lower than 5.2 per cent
- Current account deficit is more worrying than the fiscal deficit
- The surest way for us is to increase exports so that we can pay for our imports
- SEBI will meet all FIIs soon
- Tax refunds not being held up, we will do our best to process refunds and pay them quickly
- I have asked CBEC officials to look into suggestions on taxation which could not be incorporated in budget
- No intention to unilaterally amend India-Mauritius tax treaty, negotiations to revise DTAA underway
- Will address some more concerns of the foreign investors
- Will travel to Mumbai shortly and in April and May to Japan, Canada and the US
- PSUs and private companies sitting on piles of cash
- Rationalization of tax withholding rates under discussion
- Exports can't increase overnight. It's naive to expect that in the short run
- In the immediate context there must be steady flow of FDI and FII inflows
- Have to keep India an attractive destination for investments
- Don't think that the 3 per cent rate increase will dampen the SUV segment's sale
- There will always be a roll over for urea subsidy, adequate provision made for urea subsidy considering the urea prices currently
- Next few weeks will travel to Mumbai, Kolkata, Bangalore, Hyderabad, Chennai and the NCR region to meet industry
- We have re-introduced the investment allowance which will be available before projects start
- More measures under consideration, some of which will be announced in the Parliament
- Investment allowance can be clubbed along with the depreciation benefit to push up the effective tax benefit
- Hopeful the Reserve Bank of India would cut rates
R. S. Gujral:
- India faces challenge of twin deficits and controlling inflation
- Fiscal deficit at 5.2 per cent an effort to boost savings and various stepson sustained support for growth taken
Naina Lal Kidwai:
- The central theme is to ignite growth
- Need 6.5% growth to see the Govt meet the tax targets
- The divestment target is achievable
- Clearing projects will help gain 1 per cent on the GDP
- Need more inflation-linked bonds
- Gross market borrowing of Rs 6.29 lakh crore could crowd out private investments
- Levy of surcharge takes the corporate tax rate to close to 36 per cent in comparison to 24 per cent in other countries
- PSBs should be allowed to raise money from the markets just like private sector banks
- PSBs will need Rs 90000 crore for capitalization till 2018 to meet the BASEL- III standards
- Congratulate the government on the swift clarification on Section 90A
- Welcome the March 31 deadline on safe harbor rules
- Deferrment of GAAR is a clear positive signal
Adi Godrej:
- The Budget is prudent and practical
- Six months ago few would have believed that the deficit could be controlled at 5.2 per cent
- 15 per cent investment allowance helpful for starting current projects
- Thankful that indirect tax rates have not gone up
- GST must not be further delayed, hopeful it will go through as a powerful antidote to flagging growth
- Urge export incentives interest subvention should be extended to all sectors
- Amendments under Section 9 should be done away, it may be misused very badly
With inputs from Reuters
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
