>CARE Ratings Survey on Union Budget 2012-13

In light of the presentation of Union Budget for 2012-13 on March 16, 2012, CARE Ratings has conducted a survey on Expectations from this Budget with regard to its orientation, strategy, provisions and reform initiatives.


Results of the CARE Ratings Survey on the Budget are based on the opinion of 50 respondents; across banks, financial institutions and intermediaries including brokerage firms, corporate bodies, consulting firms, research institutes and industry bodies.


Survey Responses


On Budget Orientation
■ 45.8% of respondents are of the opinion that Budget 2013 would incorporate populist measures, while the majority (50.0%) feel contrary. Therefore, the opinion is almost evenly divided.
■ A majority support a focus on fiscal prudence (78.7%) and orientation towards growth (63.0%) in the Budget, indicating a challenge for the government; of borrowing less and financing expenditure through revenue streams.
o While rationalisation of tax slabs could act as a “sweetner” in the budget, it would be critical in case of an expansion in the tax base.
■ In accordance with the above expectations, the general belief is that the fiscal deficit target set by the government for FY13 would be less than 5% of GDP. As per the survey 57.1% of respondents expect fiscal deficit to be less than 5%.

To read full report: SURVEY
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