Union Budget: Economic growth seen at 8.75-9.25% in FY12

The Finance Minister Pranab Mukherjee is presenting the Union Budget 2011. Fiscal consolidation and reforms being the key themes in the speech, the FM says that the Reserve Bank of India (RBI) steps will further ease inflation in coming months.

He has a challenging economic situation to contend with. On the plus side, there has been a rebound in growth. But global crude oil prices are near USD100 a barrel, inflation is high, as is the current account deficit. And there has been little progress on policy reform.

Inflation has been in double digits for most part of the year, driven by spikes in food prices. Bottlenecks in the supply of fruits, vegetables, fish, milk, eggs have to be ironed out. That means more investment, both public and private, in the agriculture sector. There is urgent need for more storage and cold chain facilities.

Here is a look at the quick updates so far.

• Current account deficit poses some concern
• Economic growth seen at 8.75-9.25% in FY12
• See average inflation lower In FY12
• Current account concern due to composition of FX flows
• 'Corruption is a problem; must fight it collectively'
• Impression of drift in govt 'misplaced'
• Taking steps to simplify tax, tariff procedures
• see FY11 farm growth at 5.4%, GDP growth at 8.6%
• FY11 industrial growth seen at 8.1%, services growth at 9.6%
• High gap between wholesale, retail prices 'unacceptable'