Friends,
Leaving apart the off-bidget subsidies , the fiscal deficit at centre is at just 2.5% for the current financial year and happens to be lower than 4.1% in 2006. This speaks that while the govt. is attempting to be more responsible fiscally, it has had to do some special declarations like the waiver of farm loans which are kept off-budget.
This has made some observers restless . I may assure you that while it may seem some extravagant act, it will not harm the economic situation. It also gives impression that govt. finances are pretty strong and it can afford to absorb demand of such high order even out of the budget. In fact there is a case for the reduction of tax burden on all sections of tax payers if only govt. may check its wasteful expenditure. The cost of governance will be further lower with greater use of IT and related services. On all accounts it may be expected that the expenditure towards infrastructure will be scaled up.
This macro economic number also has only positive overtone for the market.
HariOm,
krsnakhandelwal
