With fiscal deficit for the first half crossing 65 per cent of budget target for entire year, Finance Minister P Chidambaram has exuded confidence that expenditure would be contained for the current financial year , given government measures for reining in the same.
Government has imposed measures like rationalization of expenditure and optimization of resources with a view of stimulating economic growth. The Investor’s friendly FM added that government will also attempt by employing effort to restrict the expenditure on central subsidies. The government plans to mandatorily cut the non-plan expenditure by 10% in the current financial year.
Pointing the economic slowdown to various factors, including the tight Reserve Bank of India monetary policy, he underscored that government had been taking steps to promote investment and growth. “Among domestic factors, the tightening of the monetary policy to rein inflation resulted in the slowing down of investment and growth, particularly in the industrial sector,” Chidambaram reiterated.
The finance minister has fixed target to contain fiscal deficit at 5.3 percent of the country's gross domestic product (GDP) in the current financial year as compared to 5.8 percent recorded in 2011-12. Further, the government off-lately outlined a road map for fiscal consolidation that target to cut fiscal deficit to three percent by 2016-17.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: