Measures on disinvestment, tax reforms likely in budget
February, 10th 2010
The Government may announce measures on tax reforms, disinvestment in PSUs and push infrastructure investment, besides stepping up efforts for fiscal consolidation in the forthcoming budget, a top economist said.
You may see encouraging signs of fiscal consolidation, tax reforms, disinvestments and a further push on infrastructure investment (in the budget), Morgan Stanleys Chairman, Stephen S. Roach, told reporters here on Tuesday.
Finance Minister Pranab Mukherjee is slated to present the budget on February 26. Roach also said that he expects some steps in the budget to support the struggling farm sector.
Noting that the Government has already initiated steps on PSU disinvestment to mobilise funds through share-sales of state-owned entities, Roach said there was likely to be more such initiatives moving ahead.
We will see more of such announcements coming (on PSU disinvestment), Roach said.
Fiscal consolidation is also likely to be a major priority of the Government and measures to hold-off the huge fiscal deficit, which is estimated at 6.8 per cent in FY 10, are also widely expected.