Scribd Logo
Upload

Welcome to Scribd!

  • Deficit Budget 2013

    Uploaded by

    Priya Arora
    8 views8 pages
    The document summarizes India's deficit budget for 2013. It discusses that India had a fiscal deficit of 5.3% in 2012 and projected to be 4.8% in 2013, which is still considered high as the government aims to reduce it to 3% by 2016-2017. It outlines the government's fiscal consolidation plan to widen the tax base and prioritize expenditures. It also notes the need to raise tax revenue to GDP ratio above 11% to sustain fiscal consolidation and allow more room for monetary policies. The document recommends curbing imports and making oil prices more market-determined to reduce the current account deficit, while exports are limited in increasing in the short run. Inflation rates were projected to gradually decrease through 2013

    Original Description:

    defecit budget 2013

    Original Title

    Economics

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document summarizes India's deficit budget for 2013. It discusses that India had a fiscal deficit of 5.3% in 2012 and projected to be 4.8% in 2013, which is still considered high as the government aims to reduce it to 3% by 2016-2017. It outlines the government's fiscal consolidation plan to widen the tax base and prioritize expenditures. It also notes the need to raise tax revenue to GDP ratio above 11% to sustain fiscal consolidation and allow more room for monetary policies. The document recommends curbing imports and making oil prices more market-determined to reduce the current account deficit, while exports are limited in increasing in the short run. Inflation rates were projected to gradually decrease through 2013

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    8 views8 pages

    Deficit Budget 2013

    Uploaded by

    Priya Arora
    The document summarizes India's deficit budget for 2013. It discusses that India had a fiscal deficit of 5.3% in 2012 and projected to be 4.8% in 2013, which is still considered high as the government aims to reduce it to 3% by 2016-2017. It outlines the government's fiscal consolidation plan to widen the tax base and prioritize expenditures. It also notes the need to raise tax revenue to GDP ratio above 11% to sustain fiscal consolidation and allow more room for monetary policies. The document recommends curbing imports and making oil prices more market-determined to reduce the current account deficit, while exports are limited in increasing in the short run. Inflation rates were projected to gradually decrease through 2013

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 8

    DEFICIT BUDGET 2013

    A financial situation that occurs when an entity has more money going out than coming in. The term "budget deficit" is most commonly used to refer to government spending rather than business or individual spending. When it refers to federal government spending, a budget deficit is also known as the "national debt." The opposite of a budget deficit is a budget surplus, and when inflows are equal to outflows, the budget is said to be balanced.

    FISCAL DEFICIT:When government's total expenditures exceed


    the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits.

    CURRENT ACCOUNT DEFICIT:Occurs when a country's total


    imports of goods, services and transfers is greater than the country's total export of goods, services and transfers. This situation makes a country a net debtor to the rest of the world.

    INFLATION:The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum.

    Year 2012: 5.3% Year 2013: 4.8% "Fiscal deficit at 5.2% is still very high. The government is committed to reducing it to 3% by 2016-17


    a) b)

    Fiscal Consolidation Plan: Widening tax base Prioritizing expenditure


    Raising tax to GDP ratio more than 11% is critical for sustaining fiscal consolidation. Room for accommodative mometary policy which expected fiscal consolidation.

    Focus on curbing imports. making oil prices more market determined.

    Recommends curbing gold.


    Room to increase exports in the short run limited. Foreion institutional investors flows needs to be targeted towards long term rupee instruments.

    WPI Inflation has already been bought down by 7% Core Inflation been bought down by 4.2% Food Inflation is still worrying Indias headline inflation may ease to 6.2 to 6.6% in March

    THANK YOU
    PRESENTED BY: PRIYA ARORA ROLL NO: 6

    You might also like