Forward Looking Growth oriented budget: Reliance Securities

Reliance Securities report on Union Budget 2010-11:

Union Finance Minister Mr. Pranab Mukherjee came out with a growth focusing FY10- 11 budget stressing government's role as an enabler. With focus on achieving the 9% GDP growth coupled with objectives to reduce inflation, the Finance minister has laid down a road map to cut the Fiscal Deficit to permissible limits. Resonating the comprehensive development philosophy, FY10-11 budget has covered everything from impetus for Agricultural growth to Fiscal consolidation to Financial Inclusion to Improving Investment Environment. Encouraged by recovery in Economy, although on back of the Fiscal Stimulus, the Finance Minister is looking forward to quickly revert to high GDP growth path of 9% and then find the means to cross the 'double digit growth barrier'. 

We believe that the Finance Minister has struck a balance between growth, inflation and fiscal prudence. He has laid down a clear path to reduce the fiscal deficit to permissible limits and the targets seem to be achievable thus encouraging and improving investment environment. The Finance minister has taken steps to partially roll back the stimulus in calibrated manner thus reflecting the strength of Indian economy which would be among the firsts to practice the same in wake of other economies reeling under pressure to demand more.

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