Deficit and Inflation
>>>> Decline in fiscal deficit from 5.7% in 2011-12 to 4.5% in 2013-14 mainly achieved by reduction in expenditure rather than by way of realization of higher revenue.
>>>> Improvement in current account deficit from 4.7 % in 2012-13 to year end level of 1.7% mainly achieved through restriction on non-essential import and slow-down in overall aggregate demand. Need to keep watch on CAD.
>>>> 4.1 per cent fiscal deficit a daunting task in the backdrop of two years of low GDP growth, static industrial growth, moderate increase in indirect taxes, subsidy burden and not so encouraging tax buoyancy.
Key Features of Budget 2014-2015
>>>> The government is committed to achieve this target. Road map for fiscal consolidation outlines fiscal deficit of 3.6 % for 2015-16 and 3 % for 2016-17.
>>>> Inflation has remain at elevated level with gradual moderation in WPI recently.
>>>> The problem of black money must be fully addressed.
>>>> Bold steps required to enhance economic activities and spur growth in the economy.
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