In the Budget for 2012-13, then Finance Minister Pranab Mukherjee had targeted fiscal deficit at 5.1 per cent of GDP, which was subsequently revised to 5.3 per cent. P. Chidambaram has delivered; the revised estimate is 5.2 per cent. For 2013-14, he is aiming at 4.8 per cent. However, the Government has failed to deliver on its commitment to rein in subsidies. Subsidies on fuel, fertilisers and food were budgeted at 1.9 per cent of GDP. The revised estimate is 2.26 per cent. Budget estimate for 2013-14 is even higher at 2.3 per cent. Juxtapose this with Pranab Mukherjee’s exhortation that subsidies will be reduced progressively to 1.75 per cent within three years. Far from that, subsidies are rising. This...
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