rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » I have drawn red lines for Budget: Chidambaram

I have drawn red lines for Budget: Chidambaram

January 30, 2013 18:03 IST

Red lines have been drawn for next month's Union Budget, Finance Minister P Chidambaram has said ruling out abandoning of all subsidises while non-merit ones could be eliminated over a period of time.

"I have drawn the red lines. The red lines are that the fiscal deficit for the current year will be no more than 5.3 per cent (of the GDP) and the fiscal deficit for the next year will be no more than 4.8 per cent.

"That's a red line and I will not breach that red line," he said in an interview to British daily 'Financial Times'.

He said government has taken measures to augment revenues, especially through tightening tax administration. It has promised the people that next year higher growth rate between 6 and 7 per cent will be aimed at.

"So I think all that we have said and all that we have done points to a responsible Budget. The Budget can be nothing except a responsible Budget," he said.

Asked whether the government would be strong enough to cut fuel subsidies, he said he would not make any "declarations from the pulpit".

The government has already corrected diesel prices and allowed oil companies to make small corrections periodically over a period of time.

© Copyright 2014 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.