Speaking to CNBC-TV18 Former Finance Minister Yashwant Sinha said the railways can‘t be treated like any other department. "My own feeling is that the Finance Minister will have to grant a lot of autonomy to the Ministry of Railways, he said.
In a move to boost India‘s lagging infra sector, the FM on Saturday announced the introduction of tax-free infra bonds for railways and roads apart from a National Investment & Infrastructure Fund worth Rs 20,000 crore.
According to Shikha Sharma, MD & CEO, Axis Bank to the extent that the planned expenditure is going to be lower is already factored into the numbers since it is already February 17 today. “So the expenditure number for next six weeks is not going to have that much of an impact in terms of growth or orders,†said Sharma
It is imperative that the finance ministry atleast stick with the 4.8 percent fiscal deficit target because anything higher than that has the potential to trigger a ratings downgrade, which in turn can impact inflows, says Indranil Pan of Kotak Securities.
In September itself CNBC-TV18 had reported that there would have to be massive cuts in planned expenditure. However, the magnitude of the cut is likely to be 20 percent of the planned expenditure at Rs 1.1 lakh crore.
In 2012-13 fiscal, the plan expenditure was reduced by over Rs 90,000 crore to Rs 4.29 lakh crore, from Rs 5.21 lakh crore estimated in budget. This helped to contain fiscal deficit at 4.9 percent of GDP.
If there is a broad based redemptions happening across emerging markets (EMs) then foreign institutional investors (FIIs) don't have a choice because they cannot sell everything else and not sell India, says Akash Prakash of Amansa Capital.
Planning Commission deputy chairman Montek Singh Alhuwalia believes that the governmet should not bear higher subsidy due to the hike in gas prices.
CNBC-TV18's Aakansha Sethi, quoting sources, reports that the government may formulate an initiative to save around Rs 35,000 crore on planned expenditure in a move to cut deficit
CNBC-TV18 reports that the Planning Commission on Wednesday approved Rs 57,000-crore worth of planned expenditure for Uttar Pradesh.