Polls not a hitch for reforms: FM

Vowing to deliver on the fiscal roadmap, Finance Minister P Chidambaram has expressed confidence that elections are not a hitch in carrying out reforms including fuel price adjustments.
Addressing an investor meet hosted by Citi Group here, he said while fiscal deficit will be reduced by 60 basis points each year, the current account deficit (CAD) will be narrowed by raising exports.
Citi said in a note after the meet, attended by about 100 investors, that the Finance Minister laid out the agenda for next few months--"regulator for road/coal (sector), resolution of coal supply issues (in next few weeks) and likelihood of another round of power tariff hikes.

"There's longer list, but more importantly, there's commitment on delivery, and confidence that upcoming elections are not a hitch," it said.
According to Citi, Chidambaram said the government was targeting 6.1-6.7 per cent economic growth in this fiscal, which will rise to 7 per cent in the next and 8 per cent in 2015-16. "8 per cent-plus growth is achievable given savings rate of 30-35 per cent."
For the year, it is targeting a fiscal deficit lesser than the budgeted 4.8 per cent, he said adding the government was aiming to bring down core inflation to less than 3.2 per cent and WPI inflation to less than 6 per cent.

On fuel pricing reforms, he said petrol prices have been freed while subsidy on LPG has been capped. "Diesel rates have been hiked 3 times already in steps of 50 paisa per litre. Elections should not derail the pricing reforms," Citi quoted him as saying.