Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
22 October, 2014 19:19 IST
News
Govt may target lower subsidy of 2.3% of GDP in FY14: Morgan Stanley
Source: IRIS | 22 Feb, 2013, 11.04AM
Comments  |  Post Comment

The bigger contributor to reduction in projected deficit will be a cut in the ratio of government expenditure to GDP.
   
"Subsidy allocation accounts for another 15-16% of total expenditure. It provides scope for reduction, yet we believe that the non-interest non-subsidy component (which accounts for 62-65% of total expenditure) is where the government can reduce its spending growth," said Morgan Stanley.
 
Total subsidy spending provided in the budget has risen steadily from 1.3% of GDP in F2006 to 2.5% in F2013. "If we include the off-budget burden, then the total has increased from 1.5% in F2006 to 2.8% in F2013 (though off the peak of 3.9% in F2009)," it said.

''We believe that given the recent announcements on fuel price deregulation and potential announcement of a new food subsidy program, the government would target a lower subsidy allocation of 2.3% of GDP in F2014, vs. our estimate of 2.8% of GDP in F2013,'' it added.

It further believes that higher spending growth will most likely take place in the second half of the fiscal year assuming the trend in tax revenue growth is supportive.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.


News
Kansai Nerolac Paints standalone quarterly net surges 40.62% - 22-Oct-2014 19:20
T E C I L Chemical & Hydro Power loss widens in Jul-Sep quarter - 22-Oct-2014 18:09
Transwarranty Finance consolidated quarterly net soars 2.66 times - 22-Oct-2014 18:03
Wipro consolidated Q2 profit rises 8% - 22-Oct-2014 16:46
SBI launches mPassBook facility in 'State Bank Anywhere' smart phone application - 22-Oct-2014 16:37
BSE inks strategic pact with Yes Bank - 22-Oct-2014 16:23
FIIs hike stake in Hindustan Zinc, DIIs cut exposure - 22-Oct-2014 16:07
DIIs increase stake in Unitech in September quarter - 22-Oct-2014 16:05
Zensar Technologies allots 1,560 equity shares - 22-Oct-2014 16:02
Tata Metaliks swings to consolidated profit in Jul-Sep quarter - 22-Oct-2014 15:59
Angel Broking maintains neutral on HDFC - 22-Oct-2014 15:57
more...
* Q - Quote , N - News , C - Chart , F - Financials
Comments Post comment 
 Post Comment
Name Email
Comment
Security Code type   vnhgk3 into this box
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer