Finance Secretary, Arvind Mayaram, said the budget for the fiscal year 2014-2015 is growth oriented and will revive the economy.
While speaking at an interactive session in here today, Mayaram defended Union Finance Minister Arun Jaitley's maiden budget that was presented in the parliament on, holding that the government will maintain the fiscal deficit at the projected 4.1 percent of GDP (Gross Domestic Product).
"As we go forward as of today, unless something very radical happens, the numbers which we have shown are very credible and we will maintain 4.1 percent on that," he said.
The President of Federation of Indian Chambers Of Commerce and Industry (FICCI), Sidharth Birla, along with its members was also present at the event.
Mayaram said the calculations are based on the assumption that growth will revive to around 5.8 percent in the current fiscal year.
"We have projected 10.6 percent tax to GDP ratio which is on the projected GDP growth of 5.8 percent to 5.9 percent. You can say that 5.9 percent is very ambitious and I would say that we are ambitious people. So therefore, we would wish to be ambitious that growth will be in that manner. And I think it is backed by a large number of announcements which I had mentioned earlier on industry, infrastructure and so on where we believe that the growth should come back," said Mayaram.
The Finance Secretary said there is a lot of focus on manufacturing sector and several measures have been taken to rationalise the tax system.
Speaking about certain challenges that could be faced by the Indian economy, he said the experts think oil prices will not go up significantly though conceding that impacts as a result of conflicts in Iraq and Middle East are beyond the control of the government.
"The only fear which we have going forward, one is on oil. On oil we have a problem because of the uncertainty, Iraq and otherwise. But the good news is that the general prediction by all the pundits is that the oil prices would not go up. At least till December, they don't foresee it going up," said Mayaram.
Mayaram also added that the government has calculated its budget numbers assuming crude oil prices at 110 US dollar per barrel and rupee at 61 per dollar, thus the calculations are measured on these numbers.
He also said he expects the government to do better stake sale in Public Sector Undertakings because of a different market condition and thus, around rupees 60, 000 crore (rupees 600 billion) disinvestment can be termed as an under statement.
Meanwhile, talking about funds and funding required by the government to achieve its targets, Mayaram said the government has unearthed rupees 12000 crore (rupees 120 billion) which were locked up in small government funds and has put them in the consolidated fund of India.
Mayaram stated the budget's objective has been fully achieved and has covered almost all areas concerned to the country and people living in it.
While delivering his maiden budget Jaitley vowed that India's economy would expand at an annual rate of seven to eight percent within three to four years.
Jaitley, 61, told lawmakers that he would uphold the fiscal deficit target inherited from the last government, despite expectations he would be forced to raise it due to weak revenues and high subsidy costs.