Budget Reactions: Measures are in line with our expectations, says Karvy

By Varun Goel, Head Equity (PMS), Karvy Private Wealth
 
The fiscal deficit number has been penciled at 5.1% for FY13. The provisions for fuel and fertilizer subsidies look inadequate and the fiscal deficit number would be closer to 5.5% in absence of meaningful hikes in auto fuel prices. The government borrowing programme at 4.79 lakh crore is quite high and would result in further hardening of bond yields.