Union Budget 2012: Pranab begins Budget speech in Parliament - News - Share.Dhangout.com

Union Budget 2012: Pranab begins Budget speech in Parliament - News - Share.Dhangout.com

Union Budget 2012: Pranab s Budget speech in Parliament

Finance Minister Pranab Mukherjee began presentation of his seventh Union Budget in Parliament in the back of challenging macroeconomic and political environment.


It may be Pranab's last attempt to bring economic reforms back on track.

Subsidies have more than doubled to 3% of GDP. They have shrunk the funds available for investment.

The Economic Survey, d yesterday by Mukherjee in the Lok Sabha yesterday, projected the economy to grow by about 7.6% in the next fiscal, up from 6.9% estimated in 2011-12.

This year's Economic Survey has added two new Chapters- financing of climate change and India's emergence in the global economy, which analyses the current global slowdown, eurozone crisis and what it means to India.

The 2011-12 Survey has also suggested the government adopt the path of fiscal consolidation to bring down fiscal deficit, besides undertaking a crackdown on corruption.

Market will keenly watch out for Mukherjee comments on the fiscal deficit and how he plans to bring the divestment ag a back on track.

However, markets have very little expectations from this year's Budget. "My own take is that it is still a non event. I still maintain that we are making a big fuss about nothing. There will be a market reaction no question about that because of so much pent up expectation. The Budget is a 200 point Nifty event," CNBC-TV18's Udayan Mukherjee said earlier in the day.

For individuals, Mukherjee now becomes the Finance Minister to have made second highest number of budget speeches.

The maximum number of 10 budgets have been presented by Morarji Desai, while P Chidambaram, Yashwant Sinha, Y B Chavan and C D Deshmukh have presented seven budgets each.

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