FM Pranab Mukherjee wants to review stimulus, contain deficit – but do this without losing sight of growth.

“We have weathered this crisis well,” that was his opening message in this year’s Union Budget. He went on to say that the Indian economy is in a much better condition now than it was last year. However the challenges that he outlined in last Budget continue to remain, he said.

This Budget is being seen by all as Mukherjee’s first steps on a journey towards fiscal consolidation. The market is looking for a firm commitment towards fiscal consolidation. It also wants long pending policy reforms, particularly to be pushed into action phase.

DTC, GST from April 1

So far, all his statements have been positive. His desire for fiscal consolidation is proven by his move to bring out a status report to control public debt in six months and the definite deadline of April 1 on DTC and GST.

On the roadmap for the much–talked about Direct Tax Code, he said “The process of building a simple tax system is near completion,” Pranab Mukherjee said in Parliament today, adding, “We aim to implement the Direct Tax Code by April 1, 2011.”

Fuel Price hike not yet

The FM said Kirit Parekh’s recommendation on fuel subsidy will be taken up later. In his words: “Decision on Kirit Parekh recommendation to be taken in due course. ” The government will however issue cash to compensate the oil marketing companies.

Fiscal deficit

FY 11 fiscal deficit to be at 5.5% of GDP. FY12 fiscal deficit pegged at 4.8%. FY13 deficit pegged at 4.1%. FY10 fiscal deficit has been revised to 6.9%.

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