Budget 2013-2014
“Kalangathu Kanda Vinaikkan Thulangkathu Thookkang Kadinthu Seyal” (What clearly eye discerns as right, with steadfast will And mind unslumbering, that should man fulfil)
- Saint Tiruvalluvar
Key Features of Budget 2013-2014
THE ECONOMY AND THE CHALLENGES Getting back to potential growth rate of 8 percent is the challenge facing the country. Slowdown in Indian economy has to be seen in the context of slowing global economic growth from 3.9 per cent in 2011 to 3.2 per cent in 2012. However, no reason for gloom or pessimism. Of the large countries of the world only China and Indonesia growing faster than India in 2012-13. In 2013-14, only China projected to grow faster than India. Between 2004 and 2008, and again in 2009-10 and 2010-11 the growth rate was over 8 per cent and crossed 9 per cent in four of those six years. 11th Plan period had average growth rate of 8 percent, highest during any Plan period, entirely under the UPA Government. High growth rate can again be achieved through cooperation. ‘Higher growth leading to inclusive and sustainable development’ to be the mool mantra. Government believes in inclusive development with emphasis on improving human development indicators specially of women, the scheduled castes, the scheduled tribes, the minorities and some backward classes. This Budget to be a testimony to that commitment. Fiscal Deficit, Current Account Deficit and Inflation The purpose of Budget to create economic space and find resources to achieve the objective of inclusive development. Dr Vijay Kelkar Committee made its recommendations to Government in September 2012. A new fiscal consolidation path with fiscal deficit at 5.3 per cent of GDP this year and 4.8 per cent of GDP in 2013-14 announced by the Government. Foreign investment in an imperative in view of the high current account deficit (CAD). FII, FDI and ECB three main source of CAD Financing. Foreign investment that is consistant with our economic objectives to be encouraged.
- Saint Tiruvalluvar
Key Features of Budget 2013-2014
THE ECONOMY AND THE CHALLENGES Getting back to potential growth rate of 8 percent is the challenge facing the country. Slowdown in Indian economy has to be seen in the context of slowing global economic growth from 3.9 per cent in 2011 to 3.2 per cent in 2012. However, no reason for gloom or pessimism. Of the large countries of the world only China and Indonesia growing faster than India in 2012-13. In 2013-14, only China projected to grow faster than India. Between 2004 and 2008, and again in 2009-10 and 2010-11 the growth rate was over 8 per cent and crossed 9 per cent in four of those six years. 11th Plan period had average growth rate of 8 percent, highest during any Plan period, entirely under the UPA Government. High growth rate can again be achieved through cooperation. ‘Higher growth leading to inclusive and sustainable development’ to be the mool mantra. Government believes in inclusive development with emphasis on improving human development indicators specially of women, the scheduled castes, the scheduled tribes, the minorities and some backward classes. This Budget to be a testimony to that commitment. Fiscal Deficit, Current Account Deficit and Inflation The purpose of Budget to create economic space and find resources to achieve the objective of inclusive development. Dr Vijay Kelkar Committee made its recommendations to Government in September 2012. A new fiscal consolidation path with fiscal deficit at 5.3 per cent of GDP this year and 4.8 per cent of GDP in 2013-14 announced by the Government. Foreign investment in an imperative in view of the high current account deficit (CAD). FII, FDI and ECB three main source of CAD Financing. Foreign investment that is consistant with our economic objectives to be encouraged.