Comment: Deepak Kapoor

Budget 2011 has clearly set the stage for the coming financial year with a growth expectation of 9% and projected gross fiscal deficit of 4.6 per cent. A closer look at the Budget financials reveal that gross tax revenue is projected to rise by over 18% on a year-on-year basis on back of FM’s confidence in sustaining growth in the economy.

The finance minister in his Budget speech does talk about refocusing subsidies through direct transfers and improving governance through more transparent and result-oriented economic management system.

Overall, it is quite a pragmatic growth-oriented Budget, though FM has walked a tight rope that any slippages on the revenue side may have a serious impact on the larger goal of fiscal responsibility.

Deepak Kapoor
Chairman, PwC India