Fiscal deficit of ~4.1% in FY15 is on expected line: KPMG

India Infoline News Service | Mumbai |

The key watch point will be buoyancy of tax collections and other non tax revenues

Finance Minister Arun Jaitley unveiled Union Budget for 2014-15 speech in Lok Sabha today.
The FM said that fiscal prudence is of paramount importance and the Budget aims to lay down broad policy indications.
On Retrospective amendment
Whilst a commitment to no more retrospective amendments and a stable tax regime is a much needed welcome move to bolster investor confidence, how the pre 2012 case already opened up be dealt with will be the key, it will be interesting to see where the existing litigation folds, Girish Vanvari, Co Head of Tax, KPMG in India says.
On Fiscal deficit
Whilst a budgeted fiscal deficit of around 4.1% in 2014-15 is around expected line, the good news is the roadmap to get it down to 3 percent in a phased manner over the next two years. The key watch point will be buoyancy of tax collections and other non tax revenues especially in the back drop of a GDP projection of 5.4 to 5.9% for 2014-15.

Read more:
Highlights of Union Budget 2014-15


 

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