Union Budget Fiscal Consolidation Analysis by Fairwealth Securities Ltd
The biggest surprise in the budget has been the fiscal defciit target for FY12 set by the Government which is encouraging for global investors. Fiscal deficit is expected to come down to an impressive 4.6% of GDP in FY12 as compared to 5.1% in FY11. The rolling targets for fiscal deficit are placed at 4.1% for 2012-13, and 3.5% for 2013-14. The targets do look ambitious, but a roadmap to achieve these targets is still to be watch out.