The Economic Survey 2013 says that foreign exchange reserves were steady at $295.6 billion at December 2012 end. Fiscal deficit may be at 5.3%, possible that Chidambadarm may bring it down to 5.2%, committed to controlling fiscal deficit. Food inflation was mainly driven by cereal prices. Diesel price hike will put upward pressure on inflation. The Survey also said that the economic slowdown is a wake up call for stepping up reforms.
Here are the other highlights:
● FY13 GDP growth target of 5% not difficult to achieve
● Medium term fiscal consolidation plan 'credible'
● Fund flows to be influenced by risk perception of investors ● Need to hike Diesel, LPG prices in line with global prices ● Montek says: Not surprised finance ministry has used CSO estimates for basis of survey ● Need to access credit at lower costs
● Tight RBI policy led to sharper than expected slowdown
● RBI rate cut has had massive impact already
● On inflation, survey echos sentiment that in short run, impact of policy easing may not increase inflation ● Curb import, keep public spending in check
● FY14 Current account deficit seen at 4.6%
● Cushion for lowering trade deficit must be limited
● Core inflation down on rbi action, fall in global prices ● Tight RBI policy led to sharper than expected slowdown
● Further steps needed to diversify software exports
● FY13 tax mop up significantly lower than budget estimate ● 0.2% fiscal slippage possible in FY14
● Will need direct, indirect tax increases will get you revenue numbers: financial experts ● Credible austerity has to be the way to growth: experts
● Finance sector to be influenced by short-term, long term of ● Outlook on public finance: controlling subsidy, petroleum subsidy, recent reforms in diesel prices, medium term consolidation plan seems secure ● Need to curb gold and oil imports to curb current account deficit: Economic Survey ● Need to stay on path of indicated fiscal...