Don't expect any generous tax exemptions in Budget 2013
Finance minister P Chidambaram on Thursday said there was a need to avoid large-scale tax exemptions, as the government is now on the path of fiscal consolidation. But in the same breath, he said there was need to give some subsidy for food, fuel and fertiliser.
December 21, 2012 / 09:16 IST
Moneycontrol Bureau
Finance minister P Chidambaram on Thursday, during Question Hour in Rajya Sabha, said there was a need to avoid large-scale tax exemptions, as the government is now on the path of fiscal consolidation. But in the same breath, he said there was need to give some subsidy for food, fuel and fertiliser. Also read: Govt lowers growth forecast, says on track for deficitChidambaram said the extent of subsidy would be determined by the state of the economy. The finance ministry had a couple of months ago revised fiscal deficit target 2012-13 to 5.3%. Don't miss: Restricting fiscal deficit to 5.3% 'doable', says ChidambaramDismissing skepticism that the government was likely to overshoot this target, Chidambaram said the figure was ‘doable.’ The government is looking to narrow the fiscal deficit to a combination of spending cuts and increasing revenues.Must read: Bitter medicine needed to get back to high growth path, says FM Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
